\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 141 Hubei Xingfa Chemicals Group Co.Ltd(600141) )
Key investment points
Event: on March 22, the company released its annual report for 2021. In 2021, the company achieved a revenue of 23.607 billion yuan, a year-on-year increase of 28.88%, a net profit attributable to the parent company of 4.247 billion yuan, a year-on-year increase of 583.58%, and a deduction of non attributable net profit of 4.487 billion yuan, a year-on-year increase of 609.87%, including a revenue of 7.0227 billion yuan and a net profit attributable to the parent company of 1.759 billion yuan in a single quarter, a record high in a single quarter.
The high prosperity of phosphorus chemical industry led to a significant increase in the company's performance, with an increase of 583.58%. In 2021, the company achieved a revenue of 23.607 billion yuan, a year-on-year increase of 28.88%, a net profit attributable to the parent company of 4.247 billion yuan, a year-on-year increase of 583.58%, and a sales gross profit margin of 33.37%, a year-on-year increase of 20.1 PCT; The net profit margin of sales was 19.92%, with a year-on-year increase of 16.64 PCT. Benefiting from the mismatch between supply and demand of ammonium phosphate and yellow phosphorus, the prosperity of phosphorus chemical industry continued to rise. In 2021q4, the revenue was 7.027 billion yuan, the net profit attributable to the parent company was 1.759 billion yuan, the gross profit margin of sales was 43.33%, and the net profit margin of sales was 28.30%, which hit a record high in a single quarter for the first time.
The six products have made concerted efforts, and organosilicon and glyphosate have fully benefited from the mismatch between supply and demand in the industry. In 2021, the output of the company's traditional phosphorus chemical products phosphate rock, yellow phosphorus, fine phosphate and ammonium phosphate was 3.2676 million tons, 121600 tons, 189100 tons and 832300 tons respectively, and the revenue was 707 million, 490 million, 1.575 billion and 2.432 billion respectively, with a year-on-year growth rate of 10.30%, 32.24%, 28.12% and 69.16%. Glyphosate, the company achieved revenue of 7.123 billion, an increase of 105.87%. From the analysis of industry supply and demand, the overseas market demand was strong in the first half of the year. The prices of raw materials such as yellow phosphorus, acetic acid and glycine continued to rise sharply. Superimposed on the low industrial inventory, the price continued to rise. The dual control policy of energy consumption continued to push up the product price in the second half of the year, from the market tax price of 50000 yuan / ton at the end of June to the market tax price of 82000 yuan / ton at the highest. In terms of organic silicon, the company achieved a revenue of 4.193 billion yuan. Affected by the high price of raw materials, strong downstream demand and the dual control policy of energy consumption, the price of DMC once rose to 63000 / ton (including tax).
The company actively embraced transformation and steadily promoted many projects. In 2021, the company's Yidu Xingfa phase II project (400000 T / a ammonium phosphate, 1.2 million T / a sulfuric acid and 400000 T / a phosphoric acid unit) was completed and put into operation, the raw material bottleneck of wet process phosphoric acid purification unit was completely solved, and the start-up efficiency was greatly improved; The 400000 T / a synthetic ammonia project of xingxinglantian, a joint-stock enterprise, was successfully started at one time. The 10000 t / a electronic grade sulfuric acid project of Xingfu electronics and the 15000 T / a electronic grade hydrofluoric acid project of Xingli electronics, a joint-stock enterprise, were put into operation ahead of schedule in the first half of the year. Among the expansion projects, such as Inner Mongolia Xingfa organic silicon new material integrated recycling project (400000 T / a organic silicon monomer Supporting 50000 T / a glyphosate and 300000 t / a caustic soda), Houping phosphate mine 2 million T / a mining project, Xinjiang Xingfa 50000 T / a dimethyl sulfoxide phase II project, and Xingfu electronics 70000 T / a electronic grade sulfuric acid and 10000 t / a electronic grade hydrogen peroxide project, The commissioning of these projects is expected to bring new profit growth points to the company. In addition, the company seized the market opportunity and joined hands with Zhejiang Huayou Cobalt Co.Ltd(603799) to take the lead in the layout of lithium battery materials and actively promote the new business map.
Investment suggestion: it is estimated that the company's earnings per share from 2022 to 2024 will be 5.29, 5.52 and 5.61 yuan respectively, and the corresponding PE will be 6.5, 6.2 and 6 times respectively, maintaining the "buy" rating.
Risk warning: the project is put into operation less than expected, the downstream demand is less than expected, and the product price fluctuation risk.
