\u3000\u30003 China Railway Special Cargo Logistics Co.Ltd(001213) 00121)
Event: on March 18, 2022, the company announced that the annual report of 2021: the company realized an operating revenue of 2.705 billion yuan in 2021, with a year-on-year increase of 39.21%; The net profit attributable to the parent company was 284 million yuan, a year-on-year increase of 125.73%; The net profit attributable to the parent company after deduction was 265 million yuan, a year-on-year increase of 123.71%; The net cash flow from operating activities was 149 million yuan, a year-on-year decrease of 15.86%. In Q4 of 2021, the company achieved an operating revenue of 748 million yuan, an increase of 18.96% year-on-year and 7.07% month on month; The net profit attributable to the parent company was 38 million yuan, a year-on-year decrease of 21.39% and a month on month decrease of 41.93%; The net cash flow from operating activities was 19 million yuan, a year-on-year decrease of 39.92% and a month on month decrease of 65.36%.
Meanwhile, the company announced that the performance of the first quarter of 2022 was increased in advance, and the net profit attributable to the parent company in a single quarter was 96 million-116 million yuan, with a year-on-year increase of 8.32% to 30.89%.
Comments:
The performance in 2021 was + 39.21% year-on-year, and the net profit attributable to the parent company was 284 million yuan. The performance in 2022q1 was brilliant
During the reporting period, in the face of repeated global epidemics, upstream raw material price fluctuations and other market changes, the company carried out various work in an orderly manner according to the annual business plan and actively carried out market expansion. The production, sales and sales price of the company’s leading products processing additives and accelerators increased compared with the same period last year, and the company’s profitability increased in 2021. In Q4 of 2021, the company achieved an operating revenue of 748 million yuan, an increase of 18.96% year-on-year and 7.07% month on month; The net profit attributable to the parent company was 38 million yuan, a year-on-year decrease of 21.39% and a month on month decrease of 41.93%. The main reason is that the prices of raw materials (cyclohexane, phthalic anhydride, aniline, tert butylamine, zinc oxide, sulfur, wax, etc.) involved in the company’s products have increased, the price of the company’s products has lagged behind to the downstream, and the profitability has declined.
In 2021, the company’s sales expense was 57 million yuan, with a year-on-year increase of 27.88%; The management fee was 112 million yuan, an increase of 11.18% year-on-year; The financial expenses were 30 million yuan, with a year-on-year increase of 36.78%, mainly due to the increase of bank financing business; The R & D cost is 78 million yuan. A year-on-year increase of 70.86%, the company continues to increase its investment in R & D and build its core competitiveness.
2022q1 company’s performance is good for the following reasons: 1. The profitability of processing system additives and some high-end high-performance varieties of the company has increased steadily. At the same time, it has actively expanded the development and certification of green rubber additives by customers, made good progress, and the net profit level has increased year-on-year. 2. In 2021, the company implemented the restricted stock incentive plan and the first phase of employee stock ownership plan. In the first quarter of 2022, the amortization expense of share based payment was about 10 million yuan, which affected the current net profit. 3. The impact of non recurring profit and loss on net profit is expected to be about 1 million yuan.
The price of vulcanization additives and processing additives increased, improving the profitability of the company
According to Zhuo Chuang information, the average market price of accelerator M in 2021 was 160816 yuan / ton, a year-on-year increase of + 35.80%; The average market price of accelerator NS was 263394 yuan / ton, a year-on-year increase of + 26.68%; The average market price of accelerator TMTD was 18707 yuan / ton, a year-on-year increase of + 42.24%. The rise in the price of main products will drive the improvement of the company’s profitability in 2021; In 2021, the company realized an operating revenue of 2.705 billion yuan, a year-on-year increase of 39.21%; The net profit was 284 million yuan, a year-on-year increase of 125.73%; The net profit attributable to the parent company after non deduction was 265 million yuan, a year-on-year increase of 123.71%.
The 40000 ton continuous method insoluble sulfur project is expected to contribute to the company’s profit
In recent years, the company has formed a number of core technologies through continuous technological breakthrough. The successful research and development of the new green process of accelerator M and NS has solved the three wastes problem that has been perplexing the accelerator industry. Environmental friendly homogenizer, high thermal stability and high dispersion insoluble sulfur of continuous process, pk900, TBSI and other products have been successfully localized, breaking the monopoly of foreign technology and building a new performance growth point for the company. At present, the company is the third company to master the industrialization technology of continuous insoluble sulfur after Eastman and Shikoku Chemical Co., Ltd. of Japan, and its product competitiveness has been fully recognized by the market; One of the key tasks of the company in 2022 is to promote the production of 40000 tons of continuous insoluble sulfur project as soon as possible. At present, the energy assessment is under approval.
Increased investment in R & D, continued to explore business areas, and rich product reserves
In 2022, the company will promote the production of 40000 tons of continuous insoluble sulfur project as soon as possible; The construction of 35000 tons of phenolic resin and 10000 tons of hmmm project and 10000 tons of rubber anti coking agent CTP project in Dongying plant will be started as soon as possible. Projects with an annual output of 65000 tons of silane coupling agent and other projects are expected to start construction in the second half of 2022. In 2022, the company plans to achieve an operating revenue of 2.8 billion yuan and a total profit of 450 million yuan. At present, the company continues to increase investment in research and development. For the new antioxidant currently under research and development, the company plans to build a ton pilot production demonstration line by the end of 2023 to enrich and optimize the product structure of antioxidant; The silane coupling agent is approved and is expected to be put into operation in 2023; Layout of amino resin (hmmm), the project has been filed by the government, and the industrial construction is expected to be completed by the middle of 2023; Expand new directions in the major field of fine chemical industry, develop new energy related additives for lithium batteries through rapid industrialization, alleviate the shortage of lithium additives, and enter the new energy additives industry. It is planned to complete the pilot test of vinyl carbonate (VC) and fluorovinyl carbonate (FEC) by the end of 2022; It is planned to complete the pilot study of lipoic acid by the end of 2022, and has established a wholly-owned subsidiary Shandong Yanggu Huatai Chemical Co.Ltd(300121) Health Technology Co., Ltd. in 2021.
Build an intelligent factory and a moat for the development of the company
In 2022, the company will strengthen the construction of intelligent information platform for work safety, improve the intelligence and automation level of the whole plant, improve production efficiency, improve product quality stability, and reduce safety and environmental protection risks ERP / LIMS / WMS multi system integration and other aspects realize the intellectualization and informatization of the whole process management and control of rubber additive manufacturing, and create an intelligent management and control platform integrating risk monitoring, quality control, data exchange, intelligent control and management process
It is estimated that the net profit attributable to the parent company in 2022, 2024 and 2024 will be RMB 398 million, RMB 514 million and RMB 602 million respectively, corresponding to PE of 9.03, 6.99 and 5.97 times, maintaining the “buy” rating.
Risk tip: the competitor has made a breakthrough in the continuous process of insoluble sulfur; Slow progress of new projects; Risk of shutdown of the plant due to force majeure; The risk of falling product demand caused by macroeconomic fluctuations; Risk of sharp rise in product price and cost; The risk of untimely transformation of R & D achievements, the risk of return of accounts receivable, the risk of external guarantee, and the risk of implementation of investment projects with raised funds.
