\u3000\u3 China Vanke Co.Ltd(000002) 597 Anhui Jinhe Industrial Co.Ltd(002597) )
The simultaneous rise of volume and price helps the growth of performance, and the prosperity of sucralose is expected to be maintained
Event: on March 21, 2022, Anhui Jinhe Industrial Co.Ltd(002597) released the annual report of 2021: the operating revenue was 5.845 billion yuan, a year-on-year increase of + 59.44%; The net profit attributable to the shareholders of the listed company was 1.177 billion yuan, a year-on-year increase of + 63.82%; The weighted average return on net assets was 22.09%, an increase of 6.59 percentage points year-on-year. The gross profit margin of sales was 28.17%, with a year-on-year increase of 1.01 percentage points; The net profit margin of sales was 20.13%, with a year-on-year increase of 0.53 percentage points.
Among them, Q4 achieved a revenue of 1.826 billion yuan in 2021, a year-on-year increase of + 91.39% and a month on month increase of + 18.19%; The net profit attributable to the parent company was 464 million yuan, a year-on-year increase of + 150.06% and a month on month increase of + 69.34%; The weighted average return on net assets was 8.29%, an increase of 4.47 percentage points year-on-year and 3.06 percentage points month on month. The gross profit margin of sales was 31.98%, with a year-on-year increase of 15.23 percentage points and a month on month increase of 5.14 percentage points; The net sales interest rate was 25.38%, with a year-on-year increase of 5.91 percentage points and a month on month increase of 7.64 percentage points.
Comments:
Key projects have been completed and put into operation, and the company’s performance has been greatly improved
In 2021, the company’s performance achieved rapid growth, of which the annual revenue was 5.845 billion yuan, a year-on-year increase of 59.44%; The net profit attributable to the parent company was 1.177 billion yuan, a year-on-year increase of 63.82%. The company’s profits have increased significantly. On the one hand, it benefits from the continuous completion and operation of key projects with an annual output of 4500 tons of Jiale musk solution, 1000 tons of furan ammonium salt and 5000 tons of sucralose, which contributes to the performance increment of the company. On the other hand, benefiting from the increase of downstream demand, the price of the company’s products rose sharply in 2021, and the price of sweeteners, the company’s main products, rose sharply in the second half of the year. According to Baichuan information, the average price of acemi 2021h2 reached 8.02 trillion / ton, a year-on-year increase of + 34.64% and a month on month increase of + 37.83%; The average price of sucralose 2021h2 reached 338500 yuan / ton, a year-on-year increase of + 59.52% and a month on month increase of + 64.27%. Meanwhile, in terms of bulk chemicals, according to Zhuo Chuang information, the average market price of liquid ammonia in 2021 reached 381923 yuan / ton, a year-on-year increase of + 45.74%; The average market price of sulfuric acid reached 508.52 yuan / ton, a year-on-year increase of + 269.38%; The average market price of nitric acid reached 229264 yuan / ton, a year-on-year increase of + 55.65%. In terms of business segments, food additives achieved a revenue of 3.029 billion yuan in 2021, a year-on-year increase of 59.32%; The gross profit margin reached 33.57%, a year-on-year decrease of 2.68 percentage points; The sales volume reached 226.51% year-on-year. Bulk chemicals achieved a revenue of 2.133 billion yuan, a year-on-year increase of 61.68%; The gross profit margin reached 24.94%, with a year-on-year increase of 5.84 percentage points; The sales volume reached 1352100 tons, a year-on-year increase of 2.24%. In terms of period expenses, the ratio of sales / management / financial expenses of the company in 2021 was 1.18% / 5.69% / 0.39% respectively, and the change over the same period last year was -0.29% / – 0.92% / + 0.47% respectively. The expenses were well controlled; Meanwhile, in 2021, the net cash flow from the company’s operating activities reached 885 million yuan, a year-on-year decrease of 10.97%, mainly due to the increase in cash paid for purchasing goods and receiving labor services.
The prosperity of sucralose was maintained, and the integration advantage of sweetener was significant
The company is a leading sweetener enterprise. At present, it has the capacity of 12000 tons / year of Acer and 8000 tons / year of sucralose. Benefiting from the tight supply and demand of the industry, the product price rose sharply in 2021. In 2022, although the prices of Acer honey and sucralose fell, they remained at a relatively high level. According to Baichuan information, as of March 21, the average market price of Acer honey in Q1 in 2022 reached 83800 yuan / ton, a year-on-year increase of + 48.18% and a month-on-month increase of – 9.28%; The average market price of sucralose reached 445800 yuan / ton, with a year-on-year increase of + 116.08% and a month on month increase of + 2.72%. At the same time, the company has increased the development of markets outside China, optimized the product structure and combination, fully explored potential customers in China, expanded the new product market, and improved the popularity and brand influence of the company’s food additives products. Under the global trend of low sugar and reduced saccharification, the market demand for sugar substitutes is strong. The company also takes this opportunity to further expand the market share of the company’s food additive products. Under the background of maintaining the sweetener boom and gradually increasing the company’s market share, the sweetener business is expected to achieve a new performance breakthrough in 2022.
At the same time, the company attaches great importance to the coordination of the industrial chain. At present, the company has built 40000 t / a sulfoxide chloride and 10000 t / a diketene production capacity to support raw materials with sucralose and Acer. Meanwhile, the construction of sulfoxide chloride phase II project (40000 t / a) has also started, and the main project has been completed at present; The 30000 T / a DMF project upstream of sucralose was also approved by the end of 2021. With the implementation of relevant production capacity, the safety of raw materials of the company will be effectively guaranteed. At the same time, the advantages of integration and cost control of the company will be further improved.
5000 tons / year maltol trial production, flavor and fragrance business entered a period of rapid development.
Methyl ethyl maltol is widely used. In addition to food and beverage processing, methyl maltol can also be used to synthesize downstream pharmaceutical raw materials. Ethyl malt powder also has antibacterial and anti-corrosion properties. At present, the company has the production capacity of 1000 t / a methyl maltol and 4000 T / a ethyl maltol. At the same time, the newly-built 1000 t / a methyl maltol and 4000 T / a ethyl maltol have also entered the trial production state, and all indicators have basically met the expectations. With the new production capacity fully reaching the production standard, the scale advantage of the company in the field of Maltol will be further improved, which will also bring large performance increment to the company. At the same time, apart from maltol, the company also actively layout other products of flavor and fragrance, currently has 4500 tons / year of Jiale musk and 100 tons / year methyl cyclopentenone production capacity, product line is rich, production capacity grows faster, flavor and fragrance business is expected to enter the rapid development period.
Dingyuan project continues to be constructed to promote the future growth of the company
In 2017, the company started the construction of Dingyuan circular economy industrial park, among which 10000 t / a furfural, 40000 t / a sulfoxide chloride, 4500 T / a Jiale musk solution and 1000 t / a ammonium furan salt in phase I of the project have been put into operation successively, and the remaining 40000 t / a sulfoxide chloride is also under active construction; At the same time, phase I also plans the production capacity of 10000 t / a furfural, 5000 t / a 2-methylfuran and 3000 t / a 2-methyltetrahydrofuran. At present, Dingyuan phase II is also accelerating the land reserve work of the project to lay a foundation for the construction of the project. Phase II mainly includes the production capacity of 30000 T / a acetaldehyde and 20000 t / a diketene. With the planned production capacity of Dingyuan circular economy industrial park being constructed and put into operation, it is conducive to further improving the industrial chain, optimizing the product structure, forming upstream and downstream synergy, and promoting the long-term and stable development of the company in the future, Become a leader in the food additive industry.
Continuously increase R & D investment and continuously enhance core competitiveness
The company has continuously increased R & D investment and R & D talent team construction. In 2021, the company’s R & D expenses reached 183 million yuan, a year-on-year increase of 51.88%, accounting for 3.13% of revenue.
During the reporting period, the company applied for 138 patents, including 99 invention patents, 7 utility model patents, 2 appearance patents and 30 PCT patents; A total of 20 patents were granted throughout the year, including 14 invention patents and 6 utility model patents. At the same time, the company’s Materials Research Institute has completed staffing and optimization, carried out process optimization around the company’s existing products, the process route of furfural downstream products, expanded the R & D reserves of biological fermentation products, further developed bio based technologies, materials and related industrial chains, strengthened the company’s fine chemical product project reserves, gave full play to the company’s comprehensive advantages in the synthetic chemical industry, and continuously enhanced its core competitiveness.
The implementation of the stock repurchase plan has continuously enhanced the core competitiveness
On March 21, the company also issued an announcement on the share repurchase plan of the company, which plans to repurchase the company’s shares with its own funds of no less than 75 million yuan and no more than 150 million yuan. The share repurchase price does not exceed 55 yuan / share, which will be implemented within 12 months from the date when the board of directors deliberates and approves the share repurchase plan. The implementation of the repurchase plan, on the one hand, reflects the company’s confidence in future development and enhances the long-term investment value of the company’s shares; At the same time, it is conducive to establish a perfect long-term incentive mechanism, fully mobilize the confidence of middle and senior managers and core backbone personnel of the company, and contribute to the long-term development of the company.
Main work of the company in 2021
R & D investment continued to grow, and the transformation of achievements was remarkable
During the reporting period, the company built a technology R & D platform integrating front-end R & D, project implementation and product application, 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, further developed bio based technologies, materials and related industrial chains, attached great importance to the protection of intellectual property rights and further strengthened the layout of patent protection, A total of 138 patents were applied for in the whole year. The company and its subsidiary Jinxuan technology passed the recognition of high-tech enterprises and obtained the certificate of high-tech enterprises.
Key projects have been completed and put into operation, with sustained and steady growth
During the reporting period, the company completed the construction, feeding and start-up of the project with an annual output of 5000 tons of sucralose. By the end of the reporting period, the operation of the project unit was stable, the capacity load was full, and the production consumption had basically reached the expected level. The project with an annual output of 5000 tons of methylethyl maltol, which is implemented by the subsidiary Jinwo technology, has actively promoted the project construction. Up to now, it has entered the state of trial production. In 2021, the project with an annual output of 4500 tons of Jiale musk solution and 1000 tons of ammonium furan salt has been completed and qualified products have been produced. The construction of sulfoxide chloride phase II project has started. At present, the main project has been completed, and the DMF project with an annual output of 30000 tons is undergoing relevant administrative approval.
Timely adjust product sales strategy to improve economic benefits
During the reporting period, in view of the adverse factors such as the continuous rise of bulk chemical raw materials and the continuous sharp rise of export sea freight, which led to the rise of the company’s product cost, the company timely adjusted the sales prices of sweetener products Acesulfame and sucralose and some basic chemical products to varying degrees, and actively expanded the market share of sucralose products on the basis of consolidating the leading position of sweetener products Acesulfame. In 2021, the company’s products Jiale musk and furan ammonium salt were put into the market one after another, and the performance test and taste test of sweetener products were completed, and a number of applications for expanding the scope and amount of sweetener products were completed.
Adhere to green development and strengthen safety and environmental protection management
Carry out a series of activities such as “safety production month”, “Environment Day activities”, “five small activities”, “anti violation activities” and fire fighting and emergency plan drills, launch a new operation information system, further improve the company’s operation standards and norms, promote the construction of safety standardization system, and improve the level of safety and environmental protection management. Further strengthen the key control of key devices and key parts to ensure the safe and stable operation of equipment. The company has continuously increased investment in safety and environmental protection facilities, optimized process technology, effectively reduced carbon emissions, established carbon emission management system and system, strengthened the investigation and control of carbon resources, adhered to green development, and was rated as “national green factory” by the Ministry of industry and information technology of the people’s Republic of China.
Internal management to a new level
During the reporting period, the company continued to promote information construction, and achieved effective planning and control of the company’s information flow, capital flow and business flow through the continuous deepening of the application of ERP, SRM, industrial information platform and other information intelligent systems; The company continuously strengthened production management, improved financial accounting level, further gave play to the advantages of information platform, strengthened talent training and reserve, completed the reduction of the first phase of the company’s core employee stock ownership plan and carried out income distribution, realized the benefit sharing mechanism between employees and the company, improved the vitality and creativity of the team, further consolidated the basic management level of the company, operated in accordance with laws and regulations, and continuously improved the governance level of listed companies.
Main work plan of the company in 2022
Accelerate the R & D and innovation of industrial technology and promote the transformation of R & D achievements
The company continues to introduce talents, increase investment in technology R & D and improve its R & D and innovation ability. Based on the existing market development, project construction, production and operation management, further seek breakthroughs in key catalytic technologies, enzyme expression and catalysis, promote the transformation of R & D achievements and promote the expansion to related industries. Accelerate the research, reserve and layout of new projects to lay a solid foundation for the future development of the company.
Pay close attention to safety and environmental protection management
Firmly establish the concept of safe development and green development, unswervingly adhere to the red line of safety and environmental protection, implement the three-year action plan for safe production, and carry out the construction of safety standardization system.
Actively explore the market and grasp the initiative of enterprise development
The company continues to pay attention to the changes of market conditions, actively promote the market application scope of products, tap potential markets and expand sales channels. Strengthen the continuous optimization of product structure, further sink the sales channels, and constantly enrich the sales channels of products. Strengthen the R & D and market promotion of new products, strengthen the in-depth cooperation with old customers, open up new customers through multiple channels, quickly occupy the market and improve the market share.
Strengthen talent training and establish incentive mechanism
Focusing on the goal of talent demand, the company formulates a comprehensive talent training system, reserves talent cadres, and timely introduces employee stock ownership or equity incentive measures to stimulate the enthusiasm and creativity of the talent team and maintain the stability of the talent team. Introduce excellent talents through multiple channels, strengthen the construction of talent team, and promote the long-term development of enterprises.
Complete the general election of the board of directors and the board of supervisors
In view of the expiration of the 5th board of directors and board of supervisors, the company will complete the general election of the new board of directors and board of supervisors in accordance with the requirements of relevant systems to ensure the sustainable and stable development of the company. Under the leadership of the new board of directors, the company will continue to carry forward the fine tradition, fulfill its duties, work hard and achieve leapfrog development.
Profit and investment forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be RMB 1.554 billion, RMB 1.812 billion and RMB 2.006 billion respectively, and the EPS will be RMB 2.77, RMB 3.23 and RMB 3.58/share, corresponding to 14, 12 and 11 times of PE, maintaining the “buy” rating.
Risk tips: implementation of policies, construction progress of new production capacity is not up to expectations, contribution performance of new production capacity is not up to expectations, price fluctuation of raw materials, change of environmental protection policies and sharp economic downturn.
