\u3000\u3 China Vanke Co.Ltd(000002) 749 Sichuan Guoguang Agrochemical Co.Ltd(002749) )
Event: the company released the annual performance express in 2021, and it is expected to achieve an operating revenue of 1.358 billion yuan in 2021, a year-on-year increase of + 17.11%; The net profit attributable to the parent company was 206 million yuan, a year-on-year increase of + 20.49%; The net profit attributable to the parent company after deduction was RMB 199 million, a year-on-year increase of - 10.90%. According to this calculation, the company achieved an operating revenue of 405 million yuan in 2021q4, a year-on-year increase of + 37.76%; The net profit attributable to the parent company is 18 million yuan, which is - 26 million yuan compared with 2020q4; The net profit deducted from non parent company was 15 million yuan, a year-on-year increase of - 46.43%.
Market operation has entered a period of accelerated development and strengthened the core role of technical services. In 2021, although affected by the epidemic situation and flood disasters in some provinces, the company has always adhered to the "three adjustments" positioning of plant growth regulator, regulation technology and regulation package, firmly guided by crops and strengthened the core role of technical services. At the same time, the market operation of Chongqing Yier Shuangfeng Technology Co., Ltd., a subsidiary of the company, has entered a period of accelerated development. Its products are mainly used in medium and high-end markets such as cash crops, flower seedling planting and garden maintenance, which complement the company. The improvement of industrial chain layout is conducive to broadening the market scale of the company. In addition, the market reconstruction of Shanxi haozhida Biotechnology Co., Ltd., a subsidiary of the company, has also achieved the expected results, so the annual operating revenue has achieved a significant growth.
IPO raised investment projects have passed the completion acceptance of safety facilities, and the capacity bottleneck is expected to be broken through. At the end of last year, the company's project "2100 tons of plant growth regulator technical drug production line, 19000 tons of environmental friendly pesticide preparation production line, 10000 tons of garden flower maintenance product production line and 6000 tons of plant nutrition product production line technical transformation and capacity expansion project" has passed the completion acceptance of safety facilities. Up to now, the company's IPO project has entered the formal production stage. The implementation of the new production capacity will accelerate the strengthening of the company's original drug supply capacity and the trend of industrial integration, further improve the company's product competitiveness and market share, and consolidate the company's leading position in the industry.
Investment suggestion: we expect the company to realize a net profit attributable to the parent company of 206 / 291 / 365 million yuan from 2021 to 2023, and the current share price corresponds to PE 22.3x/15.8x/12.6x. The track of planting and dispensing industry is of high quality. The company is a leader in China, with a sinking marketing network and rich product matrix. The utilization rate of new investment capacity and M & a capacity will gradually rise. However, considering that the current valuation of the company is in the central position, it is rated as "overweight".
Risk tips: 1 Capacity release is less than expected; 2. Environmental protection policies affect production; 3. The registration progress of product registration certificate is less than expected
