\u3000\u3 China Vanke Co.Ltd(000002) 597 Anhui Jinhe Industrial Co.Ltd(002597) )
Performance review
On March 22, 2022, the company released its 2021 annual report. In 2021, the company achieved a revenue of 5.845 billion yuan, a year-on-year increase of + 59.44%, and a net profit attributable to the parent company of 1.177 billion yuan, a year-on-year increase of + 63.82%; In the fourth quarter, the company achieved a revenue of 1.826 billion yuan, a month on month increase of + 18.19%, and a net profit attributable to the parent company of 464 million yuan, a month on month increase of + 69.18%.
Business analysis
In 2021, the company's food manufacturing business realized an operating revenue of 3.029 billion yuan, with a year-on-year increase of + 59.32% and a gross profit margin of 33.57%, a year-on-year decrease of 2.68 percentage points. The sales volume in 2021 was 31200 tons, an increase of 6100 tons compared with 2020. The increase in sales volume was mainly due to the release of new capacity of sucralose. At the same time, the sales price of food additives such as sweeteners and spices of the company increased. In 2021, the company's basic chemical business realized an operating revenue of 2.351 billion yuan, with a year-on-year increase of 53.70% and a gross profit margin of 23.36%, with a year-on-year increase of 6.10 percentage points, mainly due to the increase in China's demand for bulk chemicals and the year-on-year increase in product prices. In 2021, the total expense rate of the company was 7.26%, a year-on-year decrease of 0.74 percentage points. Among them, the sales expense rate was 1.18%, a year-on-year decrease of 0.29 percentage points, the management expense rate was 5.69%, a year-on-year decrease of 0.92 percentage points, and the financial expense rate was 0.39%, a year-on-year increase of 0.47 percentage points.
The competitive advantage of core products is prominent, and the market share is increasing. The production capacity of sucralose is 8000 tons, ranking first in the world. At the same time, the company plans a 30000 T / a DMF project to provide raw materials for sucralose. At present, it is actively promoting relevant administrative approval. In addition, the construction of the second phase project of sulfoxide chloride, the core raw material of sucralose, has been started. At present, the main project has been completed, and the project construction will be actively promoted in the follow-up. In terms of maltol, the company's 5000 tons of methyl ethyl maltol has entered the trial production stage. According to the company's annual report, the company optimizes the process around the existing products, and expands the R & D reserves of biological fermentation products and other projects.
Investment advice
Considering the correction of the company's product price, but the release of the company's new product capacity, we expect the company's net profit attributable to the parent company from 2022 to 2024 to be 17.1 (down 11.4%), 20.06 (down 14.7%) and 2.325 billion yuan (newly introduced), EPS to be 3.05, 3.56 and 4.16 yuan respectively, and the corresponding PE of the current market value to be 13.16x, 11.22x and 9.68x respectively, maintaining the "buy" rating.
Risk tips
Product sales are lower than expected; Falling product prices; The company's production capacity construction and launch progress is less than expected.
