\u3000\u3 China Vanke Co.Ltd(000002) 549 Hunan Kaimeite Gases Co.Ltd(002549) )
Events
1. In 2021, the listed company achieved an operating revenue of 668 million yuan, with a year-on-year increase of 29%; The net profit attributable to the parent company was 139 million yuan, a year-on-year increase of 92%; Net profit deducted from non parent company was 126 million yuan, with a year-on-year increase of 124%.
2. The listed company issued the 2022 equity incentive plan (Draft).
3. Release the plan for non-public offering of A-Shares in 2022.
4. Fujian KEMET plans to implement 300000 t / a (27.5%) high clean food and electronic hydrogen peroxide project, with an investment period of 3 years.
5. Set up a wholly-owned subsidiary Yizhang KEMET Special Gas Co., Ltd.
The performance in 2021 exceeded expectations: the revenue and performance reached a new high since listing, and the cash flow was good
The net profit attributable to the parent company in 2021 was 139 million yuan, slightly higher than the median value of 130 million yuan in the previous performance forecast. During the reporting period, the revenue of liquid carbon dioxide was 285 million yuan, accounting for 43%. In addition, the total revenue of liquefied gas and pentane reached 111 million yuan, accounting for 17%, an increase of 7pct over the same period last year. The operating revenue of electronic special gas (krypton gas, xenon gas and neon gas) was 19 million yuan, accounting for 2.7% of the revenue, realizing the first sales. In 2021, the company’s gross profit margin was 42%, up 4pct from 2020. In 2021, the gross profit margin of liquid carbon dioxide and hydrogen business was 52.4% / 28.2% respectively, which was basically the same as that of the same period last year. Benefiting from the rise in crude oil prices, the gross profit margin of liquefied gas increased from – 2% in 2020 to 35% in 2021. In 2021, the cash flow from operating activities was 250 million yuan, a year-on-year increase of 59%. In 2021, the cash / operating income received by the company from selling goods and providing labor services reached 1.06.
The equity incentive plan will be released in 2022 to show the confidence of the management
The incentive plan plans to grant no more than 19 million restricted shares (accounting for about 3% of the total share capital of the company), and the grant price is 8.24 yuan. The incentive objects include 220 senior executives, middle managers and core technical backbones, accounting for 31% of the total number of employees (705), and the incentive coverage is wide. The incentive plan will be unlocked in three years 24 months after the completion of the grant. The performance evaluation objectives are: the net profit in 2022, 2023 and 2024 will be greater than 180 million yuan, 250 million yuan and 350 million yuan respectively.
The company plans to raise no more than 1 billion yuan for the implementation of special gas and high clean hydrogen peroxide projects. The company plans to raise no more than 1 billion yuan by non-public offering of A-Shares for the implementation of Yizhang KEMET special gas project (with a total investment of 750 million yuan) and Fujian KEMET with an annual output of 300000 tons of high clean hydrogen peroxide project (with a total investment of 520 million yuan).
Recently, the price of crude oil has continued to rise, and the profitability of the company’s liquefied gas and pentane products has continued to rise. Recently, the price of crude oil (ice oil distribution) has exceeded US $100 / barrel, reaching a new high in recent 8 years. The cost of liquefied gas and pentane products of the company is locked and priced according to the lump sum package of upstream petrochemical tail gas; The price is calculated according to the calorific value of combustible gas, which follows the market and has a positive correlation with the international crude oil price. We expect that the gross profit margin of the company’s gas business in 2022 is expected to further increase.
Traditional business is improving steadily: Jieyang project is advancing steadily, and new products such as hydrogen peroxide help the growth. In addition to the disclosed Jieyang project (including 300000 tons of high clean hydrogen peroxide project), Fujian KEMET plans to invest 520 million yuan to implement 300000 tons / year (27.5%) high clean food and electronic grade hydrogen peroxide projects. Hydrogen peroxide has the characteristics of transportation radius, supply and demand do not match, and there is a supply gap in some areas.
Electronic special gas creates a new growth pole: rare gas is expected to be in large quantities, officially entering China’s electronic special gas market of synthetic products, with a compound growth rate of about 20%, which is mainly used in integrated circuits (accounting for 70%) and other fields. The localization rate of China’s electronic specialty gas is about 15%, and there is a wide space for domestic substitution. Yueyang KEMET electronic special rare gas subsidiary was established in 2018. It is a rare electronic special gas production enterprise in China, from gas source to purification, mixing, testing and sales. The company has a professional gas analysis laboratory and independently developed steel cylinder treatment technology. The purification treatment is higher than the average level in China.
1) in 2021, rare gases were sold steadily and obtained relevant certification. A total of 19.38 million yuan of rare gas (krypton, xenon and neon) sales contracts were signed. It is expected that rare gases will be released in 2022.
2) it is proposed to establish Yizhang KEMET Special Gas Co., Ltd. to officially enter the synthetic gas and settle in Chenzhou Yizhang fluorine chemical park. The products include hydrogen chloride, chlorine gas, high-purity fluorine, hydrogen fluoride, fluorine based mixed gas, hydrogen bromide, VOC standard gas, antimony pentafluoride, chlorine trifluoride, carbonyl fluoride, electronic grade acetylene, deuterium gas and other products. The total investment of the project is 720 million yuan. The construction period of the project is three years. It is estimated that the annual income is 650 million yuan, the tax is 100 million yuan, and the internal rate of return is as high as 28%.
Profit forecast and investment suggestions
Raise the performance forecast for 2022. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 250 / 4.1 / 540 million respectively, with a compound growth rate of 57%, corresponding to 43 / 25 / 19 times of PE respectively, maintaining the “buy” rating.
Risk tips:
The production progress of the project is less than expected, and the sales of electronic special gas is less than expected.
