\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
Steady growth in performance and return to high growth: Rianlon Corporation(300596) released its annual report for 21 years, the company achieved a revenue of 3.445 billion yuan, a year-on-year increase of + 38.7%, and a net profit attributable to the parent company of 418 million yuan, a year-on-year increase of + 42.5%, significantly higher than the 11.7% increase in the same period last year. In the single quarter of 2021q4, the revenue was 919 million yuan, with a year-on-year increase of + 23.4% and a month on month increase of + 1.16%, and the net profit attributable to the parent company was 118 million yuan, with a year-on-year increase of + 47.9% and a month on month increase of + 3.9%.
The business of anti-aging agents is growing again, and the cost is fully conductive and stable. In the past two years, the company has intensified the market development in order to overcome the impact of the epidemic. Customers who accounted for more than 93.31% of the sales in 20 years chose to repeat the purchase in 21 years, and the total number of customers increased by 17.85%. Under the background of overseas economic recovery in 21 years, we have successfully achieved a high growth of 46.0% in overseas revenue. At present, the 20 year trial production projects of the company’s central defense base and Changshan base have all reached production capacity, and the production capacity has been upgraded to a positive market development. The company’s business volume has continued to expand, and the production and sales of antiaging agents increased by 48.3% and 37.1% respectively over the past 21 years. In addition, due to the unilateral rise of the company’s raw material prices in 21 years, the average operating cost of a single ton of products increased by about 2400 yuan, while the annual gross profit margin decreased by only 0.41pct to 26.8%. The company’s full cost transmission ability is mainly due to its high-quality head customer resources.
Multiple projects are advancing together and new fields are continuously expanded: at present, Zhuhai phase I project has entered the trial production stage, and another project under construction with an annual output of 3200 tons of light stabilizer and 51500 tons of u-pack is planned to be put into operation in 22 years. In addition, the 5000 ton / year water dispersed antioxidant project has been started in Tianjin factory, and the 20000 ton / year synthetic hydrotalcite project has also started the construction approval procedure in Zhuhai base. At the same time, the company actively cultivates the second and third life curves, continues to promote the acquisition of Kangtai shares and the construction of phase II projects, and gradually develops the field of life science. At present, the company has started the construction of nucleic acid drug monomer pilot plant, and will continue to deepen the R & D and industrialization process of polyglutamic acid products to empower the company for a long time.
Profit forecast and investment suggestions
With the recent high oil price, the cost of raw materials may face further upward pressure. We believe that the company has high-quality head customer resources and sufficient cost transmission will promote the price of the company’s products, but the profit of a single ton of products is relatively stable. Therefore, the relevant revenue forecast is raised, and the impact of the merger and acquisition of Kangtai shares on the performance is not considered for the time being. We predict that the company’s earnings per share in 20222024 will be 2.68/3.20/3.69 yuan respectively (the original prediction was 2.68/3.10 yuan per share in 22-23 years). According to the average price earnings ratio of 21 times that of comparable companies in 22 years, we will give the target price of 56.28 yuan and maintain the buy rating.
Risk tips
Price fluctuation of raw materials and products; Product demand is less than expected; The ramp up progress of production capacity is less than expected; The promotion of lubricating oil additive business was less than expected.
