\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 409 Tangshan Sanyou Chemical Industries Co.Ltd(600409) )
Event: on March 16, 2022, Tangshan Sanyou Chemical Industries Co.Ltd(600409) released the annual report of 2021: the operating revenue reached 23.182 billion yuan, an increase of 30.38% year-on-year; The net profit attributable to the shareholders of the listed company was 1.671 billion yuan, a year-on-year increase of 133.04%; The weighted average return on net assets was 13.77%, an increase of 7.49 percentage points year-on-year. The gross profit margin of sales was 22.12%, with a year-on-year increase of 3.83 percentage points; The net profit margin of sales was 7.98%, with a year-on-year increase of 3.75 percentage points.
Among them, Q4 achieved a revenue of 5.818 billion yuan in 2021, a year-on-year increase of 13.80% and a month on month decrease of 2.50%; The net profit attributable to the parent company was 149 million yuan, a year-on-year decrease of 78.29% and a month on month decrease of 58.16%; The weighted average return on net assets was 1.17%, down 4.89 percentage points year-on-year and 1.67 percentage points month on month. The gross profit margin of sales was 17.89%, a year-on-year decrease of 9.27 percentage points and a month on month decrease of 3.26 percentage points; The net sales interest rate was 3.60%, a year-on-year decrease of 10.29 percentage points and a month on month decrease of 3.13 percentage points.
Comments:
The price of main products increased, and the profitability of the company was significantly enhanced
In 2021, the operating revenue reached 23.182 billion yuan, a year-on-year increase of 30.38%; The net profit attributable to the parent company was 1.671 billion yuan, a year-on-year increase of 133.04%. The substantial growth of the company’s revenue and profit mainly benefited from the increase of product prices. In 2021, the average price of soda ash, the company’s main product, was 189080 yuan / ton, with a year-on-year increase of 51.85%; The average price of viscose staple fiber was 1239327 yuan / ton, a year-on-year increase of 37.80%; The average price of caustic soda was 191474 yuan / ton, with a year-on-year increase of 36.15%; The average price of PVC was 942362 yuan / ton, with a year-on-year increase of 34.90%; The average price of DMC was 2484329 yuan / ton, a year-on-year increase of 62.89%.
In 2021q4, the average price of soda ash, the company’s main product, was 278847 yuan / ton, with a year-on-year increase of 104.30% and a month on month increase of 37.43%; The average price of viscose staple fiber was 1272760 yuan / ton, with a year-on-year increase of 35.25% and a month on month increase of 3.63%; The average price of caustic soda was 338076 yuan / ton, an increase of 149.41% year-on-year and 68.83% month on month; The average price of PVC was 960618 yuan / ton, an increase of 9.38% year-on-year and 13.95% month on month; The average price of DMC was 3178746 yuan / ton, an increase of 73.24% year-on-year and 14.50% month on month.
In the reporting period of 2021, the company’s operating cost was 18.054 billion yuan, an increase of 24.26% year-on-year, mainly due to the sharp year-on-year increase in the prices of the company’s main raw materials pulp, calcium carbide, silicon block, raw coal and raw salt under the influence of the transmission from the sales market to the supply market, regional environmental protection constraints and the tightening of the “dual control of energy consumption” policy.
In 2021, the net cash inflow from operating activities in the reporting period was 1.58 billion yuan, a year-on-year decrease of 24.27%, mainly due to the general rise in the price of bulk raw materials in the supply market and the year-on-year increase in cash paid for purchasing commodities; The profitability of the company’s leading products was improved, and the value-added tax and income tax paid increased year-on-year; Due to the impact of social security preferences during the epidemic in the previous period and the increase of the company’s benefits and the improvement of the employee’s salary level in the current period, the cash paid to employees in the current period increased year-on-year.
In 2021, the company’s sales expense ratio was 0.89%, a year-on-year decrease of 0.12 percentage points; The management fee rate was 7.44%, a year-on-year decrease of 0.72 percentage points; The financial expense ratio of the company was 1.16%, a year-on-year decrease of 0.42 percentage points; The R & D expense rate was 0.95%, a year-on-year decrease of 0.13%.
The construction of the project is progressing steadily and the production capacity continues to expand
The company has long been committed to the development of its main business. At present, the annual production capacity of soda ash and viscose staple fiber has reached 3.4 million tons and 780000 tons respectively. It is a well-known enterprise of soda ash and chemical fiber in China; The annual production capacity of PVC, caustic soda and silicone monomers reached 525000 tons, 530000 tons and 200000 tons respectively, which has a great influence in the industry. The company continues to promote the most economical operation mode, dynamically adjust the product structure according to the sales market and cost trend, and seek the highest benefit space. In the whole year, 255 projects were implemented, 213 projects were completed and put into use, and a total investment of 330 million yuan was completed. Among them, 140 million yuan was invested to implement 11 key projects, and 25000 T / a 110 silicone rubber device, 10000 t / a 107 rubber device and 1200 T / a high hydrogen silicone oil production line of silicone downstream projects of silicon industry company were successfully put into operation and achieved production efficiency; The transformation of two production lines of the chemical fiber company was successfully completed, and the four lines produced modal fiber products at the same time. The company insists on speeding up the project and consolidating the advantages of its main business. The 200000 t / a organic silicon expansion project is progressing steadily. The project will adopt a number of independently developed new technologies and China’s leading large fluidized bed device. It is expected to be completed and put into operation in March 2023. After the completion of the project, the total scale of the company’s organic silicon monomer will reach 400000 T / A, with significant scale and cost advantages. The application procedures for 60000 tons of new solvent green cellulose fiber project have been steadily promoted. After the completion of the project, the company can add 60000 tons of lessel cellulose fiber every year, which can not only further expand the scale of the company’s regenerated cellulose fiber industry, but also encourage projects in the national industrial policy.
The prosperity of soda ash industry continues, and the company has excellent cost control
At the end of 2021, the soda ash market declined and the industrial inventory rose sharply. Affected by environmental protection control and transportation restrictions, the annual soda ash sales volume was 3.361 million tons, a year-on-year decrease of 1.75%. In recent years, the national supply side reform and environmental protection governance have been continuously promoted, and the financial policy has strictly controlled industries involving surplus and environmental protection reform, which has a certain impact on both upstream and downstream. Limited by environmental protection indicators and resource diversion, although the soda ash industry has plans to increase production capacity, there are many uncertainties about whether it can be put into operation on schedule after the completion of production capacity, so the supply increment is limited. The measures for the implementation of capacity replacement in cement glass industry in August 2021 stipulates that in order to meet the needs of photovoltaic development, capacity replacement is no longer required for the new photovoltaic calendered glass project. Driven by new energy, the demand for downstream photovoltaic glass is growing steadily, and the completion of real estate is expected to increase, boosting the demand for float glass. The support of raw material cost is continuously strengthened. The high outlook of soda ash industry may continue, which will stimulate the start-up of soda ash industry. At the same time, affected by the increase of futures warehouse and the replenishment of imported soda, the price increase may be narrowed. Overall, China’s soda ash market is expected to be better in 2022, and the overall level of the market is better than that in 2021. By the end of 2021, there were 42 soda ash enterprises in China, with an overall soda ash production capacity of about 31.7 million tons, a year-on-year decrease. The actual output was about 29.1 million tons, a year-on-year increase of about 5.4%, and the capacity utilization rate was about 88%. The company’s soda ash production capacity is 3.4 million tons / year, the product market share is about 12%, and China’s scale industry is leading; Relying on the “two alkali and one chemical” circular economy model and the comprehensive utilization of concentrated seawater, the cost advantage of the industry is obvious.
Build a “three chain group” industrial layout and build a leading enterprise in salt chemical industry and new chemical materials in the coastal economic belt of Hebei Province
In order to implement the new development concept of innovation, coordination, green, openness and sharing, accelerate the development of characteristic marine economy and expand the scale of circular economy in accordance with the development idea of “turning to the ocean, transforming to green and transforming to high quality”, and relying on the medium and long-term development plan of the company, the company has studied and formulated the industrial development plan of “three chains and a group of people”, That is to build the industrial layout of “two alkalis and one chemical” circular economy industrial chain, organosilicon new material industrial chain, fine chemical industrial chain and “double new” strategic industrial cluster of new energy and new materials, and strive to build the company into a leading enterprise in the field of salt chemical industry and new chemical materials in the coastal economic belt of Hebei Province, with a total planned investment of about 57 billion yuan.
Promote industrial upgrading and enhance industrial competitiveness
Optimize the industrial layout, extend the industrial chain and upgrade the industrial level according to the idea of “industry refinement, diversification, excellence and green strength”.
Adhere to the speed-up of projects and consolidate the advantages of main business. The 200000 t / a organic silicon expansion project is progressing steadily. The project will adopt a number of independently developed new technologies and China’s leading large fluidized bed device. After the completion of the project, the annual production capacity of the company’s organic silicon monomer will reach 400000 T / A, with significant scale and cost advantages. In the whole year, 255 projects were implemented, 213 projects were completed and put into use, and a total investment of 330 million yuan was completed. The company has invested 1.24 billion yuan in key projects such as the optimization of downstream fiber production and the operation of downstream fiber technology, of which 1.24 million yuan has been invested.
Create multi-point support and promote diversified development. The logistics company implemented the two wing development of “building a brand through internal service and creating benefits through external development”, focused on service and dedicated operation, and worked hard to build a new pattern of logistics development. The annual transportation volume reached 3.3 million tons, and the operating revenue and profit increased by 18.46% and 29.07% year-on-year. It was successfully promoted to the top 100 of Hebei Service Industry and the top 50 of logistics industry. Hong Kong companies overcome the adverse impact of the tightening of the credit scale of some banks, ensure the full coverage of the total credit to the import business, and take different targeted measures in combination with the different conditions of each bank to continuously reduce the loan interest rate and handling rate.
Focus on double carbon goals and deepen green development. Strict clean production, strict control of “three wastes” discharge, implementation of 21 environmental protection projects such as ecological restoration of soda ash slag yard and treatment of mining area, and Realization of turning slag yard into farm and mining area into scenic spot. 17 projects including pipeline venting, acid bath recovery and optimization of hydrolysis flue gas washing system were completed throughout the year. The gypsum project of environmental protection industrialization project has reached the production capacity smoothly. Thermoelectric company was successfully selected into the first batch of carbon trading enterprises in China; Chemical fiber company was rated as the “13th five year plan” green development demonstration enterprise; Chlor alkali company won the title of “industry leader in water efficiency and benchmarking enterprise”; Soda ash company has been the “industry leader in energy efficiency and benchmarking enterprise” for 10 consecutive years.
Strengthen operation control and help generate income and efficiency
Adhere to the goal orientation, coordinate internal and external production, supply and marketing, and implement comprehensive policies to stimulate the vitality of various elements and promote the double improvement of the company’s efficiency and benefits. Optimize production operation. On the premise of safety and environmental protection, calculate the product profit by day and production line to achieve the synchronization of production and marketing and supply and demand, so as to ensure the highest output of products with high efficiency and good demand. Soda ash company timely increases the proportion of heavy ash production according to market changes. The chemical fiber company has made rational use of the opportunity of production load reduction and strengthened technical transformation, and has the production capacity of four lines to produce modal fiber and four lines to produce high white fiber. Chlor alkali companies seize the favorable market situation, produce more high profit margin products, and the output of special resin reaches 35000 tons, helping to maximize profits. The silicon industry company accelerated the construction of strategic emerging industry projects, and the monthly output of 110 glue project exceeded 4100 tons, doubling. The mining company has vigorously implemented the transformation of production line and production mode, and the production capacity of products with high market recognition such as high magnesium cement stone has been further improved.
Sales flexibility. Seize the opportunity of silicone resin industry in the first half and the second half of the year, seize the opportunity of silicone resin industry in turn, and focus on the short development of silicone resin industry in the first half and the second half of the year. Strengthen the ability of industry analysis, give play to the advantages of quality brand, seize market opportunities and raise the price. The domestic price of soda ash hit a record high, and the price of viscose staple fiber reached a new high since 2018. The silicon company strengthened communication and coordination and spared no effort to maintain the high price operation cycle. Optimize the market layout and give full play to the complementary role of internal and external circulation. Under the circumstances of sharp rise in international shipping charges, shrinking exports and widening domestic and foreign sales price difference, soda ash and viscose increased domestic sales and reduced exports. PVC seized the opportunity of shortage of international supply and exported 11000 tons, effectively alleviating the pressure of domestic sales.
Stable supply. Grasp the rhythm, increase storage at low price, predict the market situation in advance, accurately control the procurement rhythm, and realize order locking in advance, increase storage at low price, low mining and high utilization. Expand channels to ensure supply. Develop procurement channels, give full play to channel advantages, and promote the main and auxiliary channels simultaneously. Soda ash company opens up new channels for Qinghai lake salt and purchases Indian salt; Chemical fiber company to stabilize the long-term supply of pulp; Chlor alkali company breaks the shackles of main channels and develops calcium carbide supply channels in Ningxia, Xinjiang and other places; The direct supply of coal by the thermal power company is maintained at more than 100%, and the effect is obvious.
Enhance innovation capacity and enhance new drivers of development
We will focus on the emergence of scientific and technological innovation as the core, and strive to achieve remarkable results in tackling key technological problems. New steps have been taken in information construction. Build an intelligent system. The intelligent product storage system of soda ash company was established to realize the digitization of storage process and the intellectualization of storage operation. An intelligent logistics system for finished products of chemical fiber company is established, which realizes the integrated management of the whole process from sales, delivery and storage; Establish unattended warehouse system of soda ash company and thermal power company to realize visual and efficient management of storage spare parts and cargo location. Promote the research and development of on-line production simulation system. Chlor alkali company has established caustic soda and PVC simulation system highly consistent with the on-site operation environment. Silicon company has established methyl chloride process start-up, shutdown and emergency disposal simulation system to realize the simulation operation and emergency treatment training of operators under off-line state, so as to reduce the on-site operation risk.
New breakthroughs have been made in tackling key technological problems. 24 projects such as the preparation method of regenerated cellulose fiber and the production process of low ammonia wet heavy alkali won scientific and technological awards at or above the provincial and ministerial level, including two provincial key projects such as “development of hydrolysis technology of low chloride ion residual dimethyldichlorosilane” and one municipal major achievement transformation project “comprehensive utilization of alkali residue salt gypsum”, which passed the acceptance of government departments and achieved the expected objectives, The two new technologies and products of “super clean treatment and resource reuse technology of viscose waste gas by biological method” and “viscose staple fiber for high-speed vortex spinning” have passed the appraisal of China Textile Federation, and the technology has reached the leading level in China; Three products including “high wet modulus bamboo fiber” successfully passed the expert review and defense of strategic emerging products in 2021. During the reporting period, 76 patents were authorized, including 19 invention patents and 57 utility model patents.
New achievements have been made in product research and development. We thoroughly implemented the “high, fine, deep and special” product R & D strategy and developed a number of new products throughout the year. The research and development of new products of lessel fiber such as high cleanliness, long tow and ultra short fiber has been successful, Shajiang and amino acid fiber have filled the market gap, and the customized production of white coconut charcoal and taijishi fiber has been realized; The film resin of chlor alkali company has realized industrial production, and the special resin for labor protection gloves has completed small-scale test and achieved phased success; The successful pilot production of silicon paste and polyether silicone oil for defoamer of silicon industry company has realized the first application of silicon paste and silicone oil in oilfield industry; Phased achievements have been made in tackling key production technologies such as dilute sulfuric acid decolorization and hydrolysate purification, which have been gradually applied and popularized.
Investment advice and profit forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be RMB 2.048 billion, RMB 2.410 billion and RMB 2.668 billion respectively, EPS will be RMB 0.99, RMB 1.17 and RMB 1.29/share, corresponding to PE of 8.29, 7.04 and 6.36 times, maintaining the “buy” rating.
Risk warning: macroeconomic fluctuation risk; The production capacity is lower than expected; Risk of price fluctuation of raw materials; Future demand decline; The progress of the new project is less than expected.
