\u3000\u3 China Vanke Co.Ltd(000002) 167 Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) )
Core conclusion
Event: the company achieved a revenue of 1.286 billion yuan in 2021, a year-on-year increase of 67.53%; The net profit attributable to the parent company was 151 million yuan, a year-on-year increase of 193.58%. In Q4 of 2021, the operating revenue reached 296 million yuan, a year-on-year increase of + 17.39%; The net profit attributable to the parent company was 27 million yuan, a year-on-year increase of + 123.86%. The zirconium industry continued to boom, with both volume and price rising, and its performance increased. In 2021, the price of zircon sand increased by 69.18%, from 9800 yuan / ton at the beginning of the year to 165.8 million yuan / ton. Under the steady growth policy, the prosperity of real estate, infrastructure and other industries is rising, which is conducive to the downstream traditional applications of zirconium industry. In 2021, the actual sales of zirconium oxychloride increased by 205.87% over the same period of last year; The actual sales of zirconia increased by 215.68% over the same period last year; The actual sales of zirconium silicate increased by 67.11% over the same period last year; The actual sales of composite zirconia increased by 82.41% over the same period last year; The actual sales of fused zirconium increased by 314.30% over the same period last year.
Performance restructuring and optimization, continuous downstream layout. During the reporting period, the company sold Chaoyang East zirconium and acquired Weiner technology, a zirconium product with high added value. After acquiring Lb Group Co.Ltd(002601) the zirconia chloride and zirconia production lines, Wiener has formed 600 t / a composite zirconia, 6000 T / a fused zirconia, 100 t / a zirconia ceramic structural parts, 900 t / A, 15000 T / a zirconia chloride, 2400 T / a zirconia and other large-scale production capacity of various grinding media, which has improved the concentration of the industry, and the profitability is expected to continue to improve under the optimization of business restructuring.
Internal management continued to improve, and Australian mining development opened up valuation space. The company has launched NCC system to continuously optimize the management of systems and processes and improve profitability. The wholly-owned subsidiary of the company has signed a strategic cooperation agreement with Lb Group Co.Ltd(002601) to strengthen cooperation in mineral mining, market, transportation and ore supply, accelerate the development of mining business in Australia, and is expected to open the valuation space of the company. Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 260 / 357 / 481 million yuan, with a year-on-year increase of 72.5% / 37.4% / 34.9%. Considering the weak upstream supply of zirconium resources and the increased demand for zircon sand under the recovery of the global economy, the price of zirconium products is expected to remain high and maintain the “buy” rating.
Risk tips: price fluctuation of zirconium products, impact of China Australia import and export policy, repeated covid-19 epidemic.
