\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 309 Wanhua Chemical Group Co.Ltd(600309) )
The integration advantage and multi-point layout helped the company develop steadily and maintain the buy rating.
Key points supporting rating
The high growth of performance in 2021 is in line with expectations: the company released the 2021 annual report. In 2021, the operating revenue was 145.54 billion yuan, a year-on-year increase of 98.2%, the net profit attributable to the parent was 24.65 billion yuan, a year-on-year increase of 145.5%, and the net profit attributable to the parent after deduction was 24.36 billion yuan, a year-on-year increase of 155.2%. In the fourth quarter, the operating revenue in a single quarter was 38.219 billion yuan, a year-on-year increase of 57.9%, the net profit attributable to the parent was 5.11 billion yuan, a year-on-year increase of 8.8%, and the net profit attributable to the parent after deduction was 5.08 billion yuan, a year-on-year increase of 11.0%. The annual performance of 2021 increased significantly, in line with expectations.
The volume and price of products in the whole line have risen, and the volume of petrochemical products is obvious. In terms of business, in 2021, the company’s polyurethane series achieved a revenue of 60.49 billion yuan, a year-on-year increase of 75.8%, a gross profit margin of 35.1%, a year-on-year increase of 0.61 PCTs, a year-on-year increase of 34.9% in polyurethane product sales and a price increase of 30.03%. The second petrochemical products achieved a revenue of 61.41 billion yuan, a year-on-year increase of 166%, a gross profit margin of 17.1%, and a year-on-year increase of 9.45 PCTs. The sales volume of petrochemical products increased by 59.8% year-on-year, and the product price increased by 66.5%. The third fine chemicals and new materials series achieved a revenue of 15.46 billion yuan, a year-on-year increase of 94.6%, a gross profit margin of 21.3%, a year-on-year increase of 2.31 PCTs, a year-on-year increase of 37% in product sales and 42.1% in price. The gross profit margin of the company’s sales was 26.3%, a year-on-year decrease of 0.52pcts; The net profit margin of sales was 17.2%, with a year-on-year increase of 3.02pcts; Roe (diluted) was 36.0%, with a year-on-year increase of 15.4pcts. During the reporting period, the company’s million ton ethylene plant was put into operation, and the rise of crude oil price combined with the global phased imbalance between supply and demand promoted the significant growth of petrochemical product revenue and profit.
The synergy of “polyurethane + petrochemical” is highlighted, and new material projects blossom in many places. In 2021, the company completed the technical transformation and capacity expansion of Yantai MDI unit of 1.1 million tons / year. Under the background of unstable operation of overseas units, the company actively met the downstream demand, and the production and sales of polyurethane products were booming. At the same time, the company takes 1 million T / a ethylene and 750000 T / a propane dehydrogenation units as the source to realize industrial chain linkage and value chain coordination, and the overall gross profit margin remains stable under the background of rising raw material prices. In terms of fine chemicals and new materials, during the reporting period, the sales volume of ADI, waterborne resin and TPU business of the company increased, the operating rate of PC devices was at the leading level in China, and the battery material business continued to promote. In the future, the company will give full play to the advantages of industrial chain integration and achieve breakthroughs in more fine chemical fields.
Valuation
The performance is in line with the expectation and the profit forecast is raised. It is estimated that the EPS in 20222024 will be 8.2 yuan, 8.9 yuan and 10.4 yuan respectively. At present, the corresponding PE is 9.2 times, 8.5 times and 7.3 times. We are optimistic about the company’s excellent cost control and operation ability, as well as continuous technological innovation, and maintain the buy rating.
Main risks of rating
The project progress did not meet expectations. Crude oil prices fluctuated sharply. The duration and impact of the epidemic exceeded expectations.
