\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 426 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) )
The company announced the announcement of main business data from January to February 2022. In the first two months, the company achieved a total operating revenue of about 5.3 billion yuan, an increase of about 75% year-on-year; The net profit attributable to shareholders of listed companies was about 1.6 billion yuan, an increase of about 110% year-on-year.
The price of main products increased year-on-year, and the performance of the company increased from January to February. According to the company’s announcement, the operating revenue and net profit attributable to the shareholders of the listed company increased significantly from January to February 2022, mainly due to: (1) the price of the company’s leading products increased year-on-year; (2) A series of technical transformation projects for increasing production and improving quality of dimethyl carbonate, caprolactam and supporting devices have been completed and put into operation, providing an increment for the operation of the company.
The price and profit of some products are still better than that of the same period last year. According to the data of Baichuan Yingfu, as of March 11, the price of urea products of the company increased by about 40% year-on-year, and the gross profit per ton of the industry was about 558.30 yuan, a year-on-year increase of 12.36%; The price of DMF increased by about 60.86% year-on-year, and the gross profit per ton of the industry was about 696438 yuan, a year-on-year increase of 115.99%; The price of adipic acid increased by 23.89% year-on-year, and the gross profit per ton of the industry was about 350222 yuan, a year-on-year increase of 15.52%.
Fully promote the project construction, and the production capacity is expected to be gradually released. The company’s existing capacity under construction includes 1 million tons of urea, 1 million tons of acetic acid, 50000 tons of DMF, 150000 tons of methylamine, 200000 tons of nylon 6 products, 80000 tons of nylon 66 products, 120000 tons of PBAT, Shanghai Pudong Development Bank Co.Ltd(600000) tons of dimethyl carbonate, 300000 tons of methyl ethyl carbonate and 50000 tons of diethyl carbonate. At present, the company’s amide and nylon new material project is pushed forward as scheduled according to the construction plan; The elements and conditions of the second base project have been implemented successively, and the project construction has been gradually started. With the steady progress of the company’s projects under construction, the company’s performance is expected to be released gradually.
Investment suggestion: Recently, affected by the conflict between Russia and Ukraine, the international oil price has remained high. Under the background of ensuring supply and stable price in China, the trend of coal price is relatively stable, and coal chemical enterprises have cost performance ratio. At the same time, the steady progress of several projects under construction of the company is conducive to the continuous expansion of the company’s scale and the guarantee of future performance growth. The company is a leading coal chemical enterprise with cost and environmental protection technology advantages and capacity expansion potential. It is expected to benefit from the supply side reform of the chemical industry under the “double carbon” goal. The company’s basic earnings per share from 2021 to 2022 are expected to be 3.43 and 3.47 yuan, and the current share price corresponding to PE is 9.43 and 9.34 times respectively, maintaining the recommended rating.
Risk warning: there is a risk that the sharp fluctuation of crude oil and coal prices will lead to the decline of product price and price difference; The risk of intensified industry competition; Macroeconomic pressure leads to lower downstream demand than expected risk; Risk that the capacity release of projects under construction is less than expected; Natural and man-made disasters and other force majeure events.
