Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426)
achievement
On December 22, the company issued a restricted stock incentive plan, which plans to grant 10.6 million shares to 190 people, including directors, senior executives and key personnel of the company’s core technology, operation, management and skills, and reserve 2.6 million shares. The grant price is 17.93 yuan per share, accounting for about 0.625% of the company’s total share capital.
analysis
The continuous promotion of the company’s equity incentive plan is conducive to the company’s continuous improvement of employees’ enthusiasm in the process of future project construction. Since this year, the company has continued to plan and build new projects, invested and built organic amine projects, caprolactam projects, DMC projects, etc. in the future, it is expected to build and put into operation nylon 6 projects, degradable plastics, nylon 66, new energy materials and other projects. On the basis of the original base, it is necessary to build the second base in Hubei, It is not only necessary for the company to further improve the training and incentive of scientific researchers, but also to continue to carry forward the existing operation and management advantages. The company has been promoting the equity incentive plan in the past. The launch of the equity incentive plan is expected to continuously improve the enthusiasm of the company’s employees, provide power for the company to continue to layout new projects and improve the company’s performance.
Based on the revenue and pre tax dividend, it shows the company’s confidence in sustainable development. According to the assessment standard of equity incentive plan, based on the data of 2020, the year-on-year growth of operating revenue in 2022-2024 is not less than 80%, 85% and 160%, which means that the revenue will reach 23.6 billion yuan, 24.3 billion yuan and 34.1 billion yuan in 2022-2024, and the overall value will remain at a high level. According to the overall revenue of 18.2 billion yuan in the first three quarters of this year, it means that under the current high price, Next year’s overall revenue can basically maintain the average single quarter level in the first three quarters of this year. If it can reach the standard in 2022, it means that the company’s new projects can resist the downward pressure on the price of some products to a certain extent, which shows the company’s confidence in the future long-term performance center.
The profit center of the company’s niche products has moved up, and it is expected to benefit from the double improvement of performance and valuation in the future. This year, the company’s urea, acetic acid and organic amine have made good profits. In the future, affected by the optimization of the industry pattern, it is expected to remain at a good profit level and reduce the periodic fluctuation. At the same time, the company has broken the growth restrictions and is expected to achieve two-way improvement in performance and valuation.
Investment advice
At this stage, with the increase of coal cost, the profit space of high-profit products in the early stage may be compressed to some extent, but it is expected that the overall profit level will still be at a good level. In the future, new material products will be implemented one after another, and the net profit attributable to the parent company from 2021 to 2023 will be reduced by 5%, 5% and 7%, which are predicted to be RMB 7.288, 7.385 and 7.796 billion respectively, maintaining the “buy” rating.
Risk statement
Energy consumption control and environmental protection in winter affect the overall supply of the industry; The construction progress of the second base is not up to expectations; Impact of policy changes; Risk of large fluctuation of raw materials and products.
