\u3000\u3 Shengda Resources Co.Ltd(000603) 077 Sichuan Hebang Biotechnology Co.Ltd(603077) )
The company’s performance reached an all-time high, the products were profitable, and the “buy” rating was maintained
On March 14, the company released its annual report for 2021. In 2021, it realized an operating revenue of 9.867 billion yuan, a year-on-year increase of 87.56%; The net profit attributable to the parent company was 3.023 billion yuan, with a year-on-year increase of 728428%, and the annual performance hit a record high; The gross profit margins of Lianhe alkali, glyphosate / glyphosate and glass reached 38.14%, 34.44% and 46.82% respectively, making huge profits. According to the business layout of the company, we maintain the profit forecast for 20222023 and increase the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 4.063, 4.540 and 5.068 billion yuan, corresponding to EPS of 0.46, 0.51 and 0.57 yuan / share, and the current stock price corresponding to PE in 20222024 will be 8.1, 7.2 and 6.5 times. As a leading platform company of salt and gas with cost advantage, the company has leading profitability in the industry and maintains the “buy” rating.
In 2021, the product price rose, and the operation continued to improve from January to February 2022. We are optimistic about the steady improvement of the company’s performance
According to the company’s announcement, the average prices of soda ash, ammonium chloride, glyphosate and Glyphosate in 2021 were 190462/841.3421885224096184 yuan / ton respectively, with a year-on-year increase of + 46.85%, + 61.49%, + 89.26% and + 96.11% respectively. The rise in the prices of main products helped the company’s high performance growth. According to the data of Baichuan Yingfu, as of March 14, the average prices of the above products in the first quarter were 262882 yuan / ton, 106611 yuan / ton, 41800 yuan / ton and 75700 yuan / ton respectively, with a month on month ratio of – 20.82% / – 6.27% / – 1.20% / – 3.81% respectively. After preliminary accounting, from January to February 2022, the company achieved a total operating revenue of about 1.8 billion yuan, an increase of about 100% year-on-year; The net profit attributable to the parent company was about 650 million yuan, with a year-on-year increase of about 500%. We are still optimistic about the steady improvement of the company’s performance in 2022 by virtue of the southwest soda ash giant and the global leading position of glyphosate.
The development projects of photovoltaic glass, monocrystalline silicon and phosphate rock have been smoothly promoted, and the company has broad development space
According to the company’s announcement, the first phase of Chongqing 8GW photovoltaic packaging materials and products project has been started and is expected to be put into operation in June 2022 and January 2023 respectively; Fuxing technology 10GW n + type ultra efficient single crystal Cecep Solar Energy Co.Ltd(000591) silicon wafer project, with a scale of 1.5-2gw silicon wafer, has started construction and is planned to be put into operation in October 2022; Mabian Yanfeng phosphate rock development project with an annual output of 1 million tons has started construction, and the project ore is expected to be output in 2022. We believe that with the orderly promotion of photovoltaic glass, monocrystalline silicon and phosphate rock development projects, the upstream and downstream product chain of the company is further extended, the product pattern is further enriched, and the development prospect is expected.
Risk tips: product prices fall, production capacity is less than expected, policy implementation is less than expected, etc.
