\u3000\u3 Shengda Resources Co.Ltd(000603) 055 Zhe Jiang Taihua New Material Co.Ltd(603055) )
Events
Zhe Jiang Taihua New Material Co.Ltd(603055) released the annual performance express for 2021: the revenue in 2021 was 4.26 billion yuan (+ 70.5%); Net profit attributable to parent company: 460 million yuan (+ 288.0%); Deduct 450 million yuan (+ 363.3%) of net profit not attributable to parent company; EPS (basic) 0.56 yuan (+ 250.0%); Roe (weighted) was 14.2% (+ 9.7pct).
In a single quarter, 21q4 achieved revenue of 1.2 billion yuan (+ 44.0%, 21q1 / Q2 / Q3 increased by 57.9% / 84.3% / 103.1%) and net profit attributable to parent company of 21q4 was 90 million yuan (+ 220.5%, 21q1 / Q2 / Q3 increased by 458.1% / 393.5% / 177.1%).
Brief comment
The 120000 ton high-performance environmental protection nylon project was put into operation, and the differentiated nylon PA66 made a significant contribution, with beautiful revenue and performance in 2021. Due to the recovery of the clothing industry after the epidemic, the prosperity of the chemical fiber industry has increased (in m1-11 in 2021, China's chemical fiber output was + 10.3% year-on-year, and the revenue of chemical fiber enterprises above designated size was + 29.8% year-on-year). The price of the company's main products has increased (the average price of nylon filament and grey cloth of 2021h1 company increased by 22% and 16% compared with 2020), Superimposed on the company's "intelligent 120000 tons per year high-performance environmental friendly nylon fiber project" and gradually put into operation, the company's annual revenue maintained a high growth rate of 70.5%; In terms of profitability, it benefited from the optimization of product structure brought by the company's new production capacity and the decline of cost brought by scale effect, especially the production capacity and output contribution of new differentiated products PA66, renewable PA6 and other functional products in 2021, The company's profit increased (according to the announcement on replying to the inquiry letter of Shanghai Stock Exchange on the company's signing of investment agreements, the net interest rate of PA66 in normal operation years is expected to exceed 15%), and the net interest rate of the company in 2021 is 10.9% (year-on-year + 6.3pct).
Looking forward to 2022, the improvement of the company's yield rate and the climbing of new production capacity will continue to contribute to the performance growth, and pay attention to the downstream demand growth caused by the localization of adiponitrile. On the one hand, the 120000 ton environmental protection nylon project of the company has partially climbed in 2021, and the annual capacity utilization rate is expected to reach 70%, which is expected to continue to increase in 22 years; With the company's advanced technology, the overall yield of the company continues to improve, of which the yield of PA66 in 22 years still has room to improve. On the other hand, the localization of adiponitrile is imminent, and the price is expected to decline in the future. At the same time, it will increase the output of nylon 66 and promote the growth of specialization, high-end, high-quality yoga clothes, outdoor products and other categories; From 2020 to 21, Tianchen Qixiang, Huafeng, Shenma and other Chinese enterprises have successively invested in adiponitrile projects. Among them, Tianchen Qixiang adiponitrile project is expected to be put into operation in 2022.
The construction of Jiangsu Huai'an base is under way, and the new capacity of renewable PA6 and PA66 is under construction to help the future growth. In October 2021, the company announced that it plans to invest no less than 12 billion yuan to build a "green multifunctional nylon new material integration project" in Huai'an City, Jiangsu Province, which is divided into four phases: the first phase is the annual output of 100000 tons of recycled differentiated nylon silk project / 60000 tons of PA66 differentiated nylon silk project, and the second phase is the annual output of 60000 tons of PA66 differentiated nylon silk project / 300 million meters of nylon grey cloth project / 100 million meters of dyeing and finishing project, The third phase is the annual output of 200000 tons of PA6 differentiated nylon silk project / 300 million meters of nylon grey cloth project / 100 million meters of dyeing and finishing project, and the fourth phase is the annual output of 200000 tons of PA6 differentiated polymerization project. At present, the construction of phase I project has been started in early 2022 and is expected to be put into operation in the first half of 2023. According to the announcement on replying to the inquiry letter of Shanghai Stock Exchange on the matters concerning the signing of investment agreements by the company, it is predicted that after the completion of phase I 100000 ton regenerated differentiated nylon / 120000 ton PA66 project in phase I and phase II, the revenue in normal years of operation period will be 3.19/5.79 billion yuan, The after tax profit is 740 / 1.02 billion yuan.
Profit forecast: from 2021 to 2023, the company is expected to realize operating revenue of RMB 4.26 billion, 5.14 billion and 6.35 billion, with a year-on-year increase of 70.4%, 20.7% and 23.5%; The net profit attributable to the parent company was 470 million yuan, 570 million yuan and 800 million yuan, with a year-on-year increase of 288.6%, 22.6% and 40.7%; The corresponding P / E of the latest valuation is 21.3x, 17.3x and 12.3x, maintaining the "overweight" rating.
Risk tip: the construction of new production capacity is less than expected, the demand is less than expected, the fluctuation of raw materials and the intensification of market competition.
