\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 309 Wanhua Chemical Group Co.Ltd(600309) )
In 2021, the company’s performance reached a record high, optimistic about the company’s future layout direction and maintained the “buy” rating
On March 14, the company released its annual report for 2021, which realized a revenue of 145538 billion yuan in 2021, a year-on-year increase of 98.19%; The net profit attributable to the parent company was 24.649 billion yuan, a year-on-year increase of 145.47%. We are optimistic that the MDI industry is stable and improving, and the petrochemical and new materials sectors will continue to increase the company’s profit space. Combined with the current upstream cost price and price difference, we reduce the profit forecast for 20222023 and add new profit forecasts for 2024. It is estimated that the company’s net profit attributable to the parent company in 20222024 will be 22.108 (- 43.29), 26.760 (- 23.35) and 30.133 billion yuan respectively, with corresponding EPS of 704 (- 1.38) respectively 8.52 (- 0.75) and 9.60 yuan / share. The current share price corresponding to PE is 14.9, 12.3 and 10.9 times respectively. We continue to be optimistic about the company’s move towards a global chemical giant and maintain the “buy” rating.
In 2021, the volume and price of products in all sectors of the company rose simultaneously, and the petrochemical sector showed outstanding performance flexibility
In 2021, the company’s Polyurethane sector achieved a gross profit of 21.215 billion yuan, accounting for 55.51%, which is still the main source of profit of the company, with a gross profit margin of 35.07%, up from + 0.61pcts in 2020; The petrochemical sector achieved a gross profit of 10.493 billion yuan, a new high for the petrochemical sector. The gross profit accounted for 27.45% and the gross profit margin was 17.09%. Compared with + 9.45 PCTs in 2020, the petrochemical sector showed outstanding performance flexibility; The gross profit of the new materials sector was 3.287 billion yuan, which maintained a rapid growth year after year. The gross profit accounted for 8.60% and the gross profit margin was 21.25%, which was + 2.31 PCTs compared with 2020. In terms of product prices, the average prices of polyurethane, petrochemical and new materials were 15551 yuan / ton, 6116 yuan / ton and 20347 yuan / ton respectively, with a year-on-year increase of + 30%, + 66% and + 42%; In terms of sales volume, polyurethane, petrochemical and new materials increased by + 35%, + 60% and + 37% respectively year-on-year.
The company continues to increase its weight in the field of new energy and new materials. With the promotion of multi base construction, its growth is still expected
In 2021, the company invested 3.168 billion yuan in R & D, mainly focusing on business segments such as high-end chemical new materials, including carbon neutralization related technologies, high-performance materials (nylon 12, special PC, Poe, optical grade PMMA, etc.), new energy storage and battery materials, highlighting the company’s future development direction, and the company’s future growth is still expected. At the same time, the company is also constantly exploring strategic opportunities in photovoltaic, wind power, nuclear power, waste heat resource utilization and other fields, and moving steadily towards the goal of zero carbon. In addition, the company’s Ningbo, Yantai, Zhuhai, Fujian and Meishan base projects are orderly promoting capacity expansion and project construction, and the company is making steady progress towards a global comprehensive chemical giant.
Risk tip: the production capacity is lower than expected, the downstream demand slows down, and the product price drops sharply
