\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 86 Qingdao Guolin Environmental Technology Co.Ltd(300786) )
Event:
The company released its annual report for 2021, and achieved an operating revenue of 496 million yuan, a year-on-year increase of 23.41%; The net profit attributable to the parent company was 76 million yuan (excluding 74 million yuan), a year-on-year decrease of 4.95% (excluding – 4.38%). The cash dividend plan is: 1.50 yuan in cash (including tax) is distributed for every 10 shares, and 8 shares are added. The company also issued the restricted stock incentive plan for 2022, with a total of 62 incentive objects, including middle and senior management and core technology (business) backbone. It is proposed to grant 2.23 million restricted shares, accounting for 2.18% of the total share capital of the company; The grant price is 15.87 yuan / share, and the performance evaluation objective is: Based on the net profit in 2021, the net profit growth rate from 2022 to 2024 shall not be less than 50%, 100% and 200% respectively.
The rising price of raw materials, epidemic situation and other factors lead to the decline of profitability
During the reporting period, the company’s roe (weighted) was 7.77%, down 2.24 percentage points; The gross profit margin and net profit margin of sales decreased by 4.90 and 4.60 percentage points to 35.43% and 15.33% respectively; The expense rate during the sales period was 14.93%, an increase of 0.34 percentage points. The decline of the company’s profitability in 2021 was mainly due to the increase of costs caused by the rise of raw material prices and the delay of project implementation caused by the epidemic. According to the company’s announcement, the company’s Laixi production base will seal the plant from March 5, 2022 in accordance with the local epidemic prevention policy, which is expected to have a certain adverse impact on the company’s 2022q1 performance. During the reporting period, the company’s asset liability ratio was 19.27%, maintaining a low position; The current ratio and quick ratio are 2.95 and 2.15 respectively. The company’s financial expenses in 2021 have a positive income of 2.43 million yuan, with stable finance and low debt risk. During the reporting period, the net cash flow of the company was -19 million yuan, a significant decrease of 127.39% year-on-year, mainly due to the increase in the procurement of raw materials such as equipment procurement of Xinjiang crystal glyoxylic acid project; During the reporting period, the company’s cash to cash ratio was 96.19%, maintaining a high level.
The equity incentive plan has sufficient incentive; High performance appraisal indicators show development confidence.
The equity incentive plan has a total of 62 people, accounting for 9.14% of the total number of the company in 2021, covering a wide range; It covers the middle and senior managers, core technology and business backbone of the company, which helps to give full play to the work enthusiasm of the management and core employees; High performance evaluation indicators show the company’s confidence in its own product technology and market development. As the leader of ozone equipment in China, driven by expanding application fields, import substitution and other factors, the company’s performance has achieved high growth and strong certainty.
China’s leading enterprise in ozone equipment and high-end application fields such as fali semiconductor
The company is a leading enterprise in China’s ozone equipment. The technical parameters and performance indicators of products with the same specifications have reached the same level as foreign competitors, with obvious technical advantages. In 2021, the company was selected into the list of specialized new small giant enterprises of the Ministry of industry and information technology. The company took the lead in developing the application system of ozone generator for tap water industry in China, and successively launched the application systems of packaged drinking water and direct drinking water, municipal sewage, printing and dyeing and chemical wastewater, industrial oxidation, flue gas denitration, industrial film coating, swimming pool, food processing space disinfection, animal husbandry, granary disinfection, cold chain ozone generator in cold storage, etc. At this stage, the company is carrying out the R & D and application of pulp bleaching ozone generator application system, high concentration ozone generator and high concentration ozone water system for semiconductor integrated circuit, electrolytic ozone generator, medical treatment instrument, ozone household water treatment terminal system, etc. The company’s semiconductor cleaning equipment project is undergoing prototype testing and is expected to be sold in Pan semiconductor fields such as panel cleaning this year. Realizing continuous breakthroughs and import substitution in high-end application fields will not only improve the company’s performance, but also enhance the company’s market influence and promote the improvement of the company’s valuation level.
High quality glyoxylic acid opens up new growth space.
The company makes full use of the existing advantages of ozone industry. After nearly a decade of research and improvement on the production process of glyoxylic acid, the company has mastered all the core technologies of preparing crystalline glyoxylic acid by ozonation maleic anhydride method, and has the proprietary technology of preparing high-quality crystalline glyoxylic acid. Compared with the current mainstream glyoxal nitric acid oxidation method, the ozonation maleic anhydride method has the outstanding advantages of high purity and no glyoxal, and can be applied to high-end application fields such as medicine, cosmetics, spices and so on. With its outstanding advantages in ozone application technology and product manufacturing, the company is expected to continue to explore new application fields of glyoxylic acid products and seize the high-end market of glyoxylic acid. High quality glyoxylic acid is expected to become a new performance growth pole of the company: the company’s 25000 ton high-quality crystal glyoxylic acid project in Xinjiang is expected to be put into operation in the middle of this year. The project has the advantages of low cost and high quality, and is expected to become an important performance growth point of the company this year and next.
Valuation analysis and rating description
It is estimated that the net profit of the company from 2022 to 2024 will be 144 million yuan, 283 million yuan and 406 million yuan respectively, and the corresponding PE will be 22 times, 11 times and 7.7 times respectively. The company’s high-quality glyoxylic acid project is put into operation to promote the deterministic growth of performance. Ozone equipment is expected to make a breakthrough in the field of semiconductor cleaning, covering for the first time, and is rated as “recommended”.
Risk tips:
The production capacity release of glyoxylic acid project is less than expected, and the sales of ozone equipment and expansion in high-end fields are less than expected.
