\u3000\u3 China Vanke Co.Ltd(000002) 597 Anhui Jinhe Industrial Co.Ltd(002597) )
Event 1: the company released the annual report of 2021. In 2021, the operating revenue was RMB 5.845 billion, with a year-on-year increase of 59.44%, the net profit attributable to the parent was RMB 1.177 billion, with a year-on-year increase of 63.82%, equivalent to EPS of 2.10 yuan / share, and the net profit after deduction was RMB 995 million, with a year-on-year increase of 74.51%. The company’s revenue and net profit in 2021 exceeded a record high. In the fourth quarter, the company realized an operating revenue of 1.826 billion yuan in a single quarter, with a year-on-year increase of 91.39%, a month on month increase of 18.19%, and a net profit attributable to the parent company of 464 million yuan, with a year-on-year increase of 150.06% and a month on month increase of 69.18%. The performance of a single quarter hit a record high. The company plans to pay 6.5 yuan for 10.
Event 2: the company released the financial budget report for 2022. It is estimated that the operating revenue in 2022 will be 7.5 billion yuan, up 28.31% year-on-year.
Event 3: the company plans to buy back the company’s shares with its own funds of no less than 75 million yuan and no more than 150 million yuan.
1) the volume and price rose simultaneously, and the food addition business continued to grow: in 2021, the company’s food manufacturing business realized an operating revenue of 3.029 billion yuan, a year-on-year increase of 59.32%, and the gross profit margin was 33.57%, a year-on-year decrease of 2.68 percentage points. The sales volume in 2021 was 31200 tons, an increase of 61000 tons compared with 2020. The increase in sales volume was mainly due to the release of new production capacity of sucralose. At the same time, under the background of the rapid rise of bulk raw materials, The company raised the sales price of food additives such as sweeteners and spices.
2) the boom is rising, and the basic chemical business has increased year-on-year under the advantage of integration: in 2021, the company’s basic chemical business achieved an operating revenue of 2.351 billion yuan, a year-on-year increase of 53.70%, and the gross profit margin is 23.36%, a year-on-year increase of 6.10 percentage points. The growth of basic chemical revenue was mainly due to the increase of China’s demand for bulk chemicals and the year-on-year rise of product prices.
3) the leading position of sucralose production expansion is stable, and the industrial chain continues to extend: the company’s existing capacity of sucralose has reached 8000 tons / year, of which 5000 tons of new capacity has been fully loaded by the end of the reporting period. At the same time, in order to ensure the safety of sucralose raw material supply and realize the integration of industrial chain, the company decided to put into operation the 30000 ton DMF project, which is expected to further reduce the cost of sucralose and consolidate the company’s market competitive advantage. The new production capacity of 5000 tons of methyl ethyl maltol has entered the trial production state, which is optimistic about the improvement of Maltol profitability after industry integration. The company’s Dingyuan base phase I project has been horizontally extended around the field of spices and pharmaceutical intermediates. The construction of 4500 tons of Jiale musk solution and 1000 tons of furan ammonium salt has been completed, and the construction of sulfoxide chloride phase II has been started.
4) the gross profit margin of the company in 2021 was 28.17%, with a year-on-year increase of 1.11 percentage points, and the net profit margin was 20.13%, with a year-on-year increase of 0.53 percentage points. In 2021, the R & D cost was 183 million yuan, with a year-on-year increase of 51.88%. The company’s Materials Research Institute completed staffing and optimization, carried out process optimization, process route of furfural downstream products, expanded R & D reserves of biological fermentation products and other projects around the company’s existing products, and further developed material-based technologies, materials and related industrial chains.
Profit forecast and investment rating: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 1.47 billion, 1.73 billion and 2.08 billion respectively, corresponding to 15.3, 13.0 and 10.8 times PE respectively. We maintain the “buy” investment rating and continue to recommend.
Risk warning: the macroeconomic growth rate is significantly lower than expected, the risk of new industry entrants, and the impact of environmental protection and safety accidents
