\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 873 Meihua Holdings Group Co.Ltd(600873) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved a revenue of 22.837 billion yuan (year-on-year + 33.94%) and a net profit attributable to the parent company of 2.351 billion yuan (year-on-year + 139.40%).
According to the announcement of the company, the price of tryptophan and lysine products increased steadily by 3.6 billion yuan in the reporting period, which was mainly due to the stable growth of tryptophan and lysine products in the reporting period, with a year-on-year increase of 3.7% in the price of lysine and lysine products in the reporting period, The sales price of threonine was + 44.75% year-on-year. In addition, the revenue of sodium glutamate, nucleotides and other fresh flavor products was 7.954 billion yuan (year-on-year + 44.72%), which fully benefited from the full production of Baicheng phase II monosodium glutamate project in the reporting period. Through collaborative sales with nucleotides, the company realized the maximum production and sales of new capacity and the simultaneous increase of volume and price of monosodium glutamate sales. In addition, the company’s fertilizer, protein powder, germ, corn bran powder, feed fiber and other large raw materials and by-products achieved a revenue of 3.658 billion yuan (year-on-year + 20.35%), xanthan gum, medicinal capsules and other products achieved a revenue of 1.894 billion yuan (year-on-year + 26.43%), glutamine, proline, leucine, isoleucine Adenosine and other pharmaceutical amino acid products achieved a revenue of 566 million yuan (year-on-year + 9.22%), highlighting the advantages of the company’s multi product portfolio. It is worth noting that the price of raw and auxiliary materials of the company increased during the reporting period. The company locked in some raw material costs by implementing the corn storage policy, adopting the import corn strategy in advance, corn auction, coal long-term association policy and other measures. At the same time, relying on the existing scale advantages, the sales price of each product increased more than the price of raw and auxiliary materials, so as to effectively improve its profitability.
The scale advantage has been significantly improved and new application fields have been continuously expanded: the leading position of the company has been further consolidated during the reporting period. According to the announcement, the company’s Jilin Baicheng phase III 300000 tons of lysine and its supporting projects have been officially put into operation in November 2021. By the end of January 2022, it has produced more than 20000 tons of lysine than the standard project, and reached the production and efficiency in February, So far, the production capacity of lysine has increased significantly, and it has become the largest lysine production enterprise in the world. The leading position of the company is expected to be further consolidated in the future. According to the announcement, the company will continue to promote the construction of Tongliao raw material ammonia project, Jilin xanthan gum project, Tongliao starch sugar and other major projects in 2022. In the future, with the gradual advancement of the project, the profitability of the company will continue to improve. In addition, as a full chain synthetic biology company that has achieved genome editing and product implementation, the company has significant technical advantages. During the reporting period, the company’s vitamin B2 technical transformation project has been put into operation, which is one of the few vitamins produced by fermentation. According to the announcement, In the future, the company will continue to invest in the synthetic biology technology of E. coli and Corynebacterium glutamicum in the production of amino acids, optimize the design of multi category production cell factories such as amino acids, upgrade the gene editing tools used, and further cover the application of synthetic biology to other new fields of synthetic biology such as pharmaceutical intermediates, functional foods and functional sugars, In the future, with the gradual implementation of various inputs, the profitability of the company is expected to be further improved.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 2.73 billion yuan, 3.2 billion yuan and 3.63 billion yuan respectively, maintaining the overweight-a investment rating.
Risk warning: the demand is less than expected; The implementation of the project is not as expected; The macro environment is less than expected
