\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 141 Hubei Xingfa Chemicals Group Co.Ltd(600141) )
On March 4, 2022, the company released the performance express of 2021, realizing an annual operating revenue of 23.608 billion yuan, a year-on-year increase of 28.88%; The net profit attributable to the shareholders of the listed company was 4.238 billion yuan, a year-on-year increase of 581.95%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 4.477 billion yuan, a year-on-year increase of 611.17%.
The prices of main products rose sharply year-on-year, and the company’s annual performance increased significantly. In 2021q4, the company achieved a revenue of 7.028 billion yuan, a year-on-year increase of 126.92% and a month on month increase of 4.47%; The net profit attributable to the parent company was 1.75 billion yuan, with a year-on-year increase of 5.69 times and a month on month increase of 29.95%. The performance achieved positive growth month on month, and the year-on-year growth rate of performance was significantly faster than that in the third quarter. According to the company’s performance express, the annual net profit attributable to the parent company increased significantly year-on-year, which was mainly affected by the following factors: first, affected by the relationship between market supply and demand, the chemical industry ushered in a boom cycle during the reporting period. The sales prices of the company’s main products such as silicone, glyphosate, dimethyl sulfoxide and yellow phosphorus increased significantly year-on-year, and the profitability was significantly enhanced. Second, the 3 million T / a low-grade collophanite beneficiation and deep processing project of Yidu Xingfa Chemical Co., Ltd., a wholly-owned subsidiary of the company, and the 400000 T / a synthetic ammonia project of Yichang xinglantian Technology Co., Ltd., a joint-stock company, were completed and put into operation during the reporting period, bringing new profit growth points to the company. Third, the company has made positive progress in the market development of electronic grade chemicals. Among them, the sales volume of electronic grade phosphoric acid, sulfuric acid, mixed solution and other high value-added products connected with semiconductor customers has increased significantly, and the business performance has increased significantly.
A number of projects have been steadily promoted, which is conducive to the expansion of the company’s scale. In terms of phosphate rock, the 2 million T / a mining project of Houping phosphate rock under construction by the company is planned to be completed and put into operation in the second half of 2022. In terms of glyphosate, Inner Mongolia Xingfa is currently building a glyphosate production capacity of 50000 tons / year, which is planned to be put into operation in the second quarter of 2022. At that time, the glyphosate production capacity of the company will increase to 230000 tons / year. In terms of silicone, the 400000 T / a silicone monomer production plant under construction by Inner Mongolia Xingfa, the company’s holding Sun company, is planned to be completed and put into operation in June 2023. In terms of electronic chemicals, Xingfu electronics is currently building a 40000 t / a IC sulfuric acid project, which is planned to be put into operation by stages before the first half of 2022. In addition, the company has established a joint venture with Zhejiang Huayou Cobalt Co.Ltd(603799) to invest in the construction of 300000 t / a iron phosphate project, which will be constructed by stages. The 100000 t / a iron phosphate project in phase I of the project is expected to be put into operation by the end of 2022.
Investment suggestion: in 2022, the prices of the company’s main products yellow phosphorus and fine phosphorus chemical products, glyphosate and silicone related products are relatively strong. We believe that the new production capacity of yellow phosphorus and glyphosate is limited in the future, and the prosperity of the industry is expected to be maintained. At the same time, the company’s projects under construction are advancing steadily, and the subsequent gradual release of new production capacity is good for the company to play a scale effect and become bigger and stronger. It is estimated that the basic earnings per share of the company from 2022 to 2023 will be 4.12 yuan and 4.45 yuan. The current share price corresponds to 9.21 times and 8.54 times of PE, which is given a cautious recommendation rating.
Risk warning: industry competition intensifies the risk; Risk of weakening downstream demand; Risk of falling product price and price difference; Risk that the progress of projects under construction and proposed projects is less than expected; Natural and man-made disasters and other force majeure events.
