\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 486 Jiangsu Yangnong Chemical Co.Ltd(600486) )
The annual revenue exceeded the 10 billion mark for the first time, the medium and long-term growth was determined, and the “buy” rating was maintained
On March 28, the company released its annual report for 2021, which realized an operating revenue of RMB 11.841 billion, a year-on-year increase of 20.45%, and a net profit attributable to the parent company of RMB 1.222 billion, a year-on-year increase of 1.02%; High yield and fast sales, cost reduction and efficiency increase have helped the main business indicators to remain stable and rise. Based on the company’s business layout, we lowered the company’s profit forecast for 20222023 and added 2024. It is estimated that the company’s net profit attributable to the parent company in 20222024 will be RMB 1.547 billion (original value 17.41), 1.968 billion (original value 2.166) and 2.202 billion respectively, and EPS will be RMB 4.99 (original value 5.62), 6.35 (original value 6.99) and 7.10/share respectively. The current share price corresponds to PE of 23.5, 18.5 and 16.5 times. We are optimistic that the company will realize the rapid progress of engineering construction, determine the medium and long-term growth and maintain the “buy” rating by virtue of the advantages of research, production and marketing integration.
The price of raw materials rose sharply, with more production and fast sales, and the business performance boosted by the supplement of quantity and price to a record high
According to the company’s announcement, 2021q4 achieved a revenue of 2.6 billion yuan, a year-on-year increase of + 38.7%; The net profit attributable to the parent company was 207 million yuan, a year-on-year increase of + 10.71%. In 2021, the prices of main raw materials isobutyraldehyde, isoprene, toluene, phosphorus trichloride and trifluoro trichloroethane increased by 126.6% / 48.6% / 46.3% / 55.9% / 50.2% year-on-year respectively. Through close connection between production and marketing and compensation by quantity, the annual sales of pesticides and herbicides of the company reached 16200 tons and 54800 tons, with a year-on-year increase of + 5.28% and + 8.78% respectively. The sales of raw drugs increased by 13.2%, the overseas trade business increased by 93.4% year-on-year, and the operating performance reached a record high. The dual control of energy consumption in 2021q3 has led to a shortage of raw materials and intermediates and a rise in prices. The company has achieved cost control, cost reduction and efficiency increase with the advantage of integration.
Youjia phase IV is advancing rapidly. From January to February 2022, the operation continues to improve, and the performance may reach a record high
According to the announcement of the company, the first phase of Youjia phase IV was completed and commissioned in early 2022. The capacity under construction is expected to be put into operation by the end of 2022. At that time, the company will add 7310 tons / year of pyrethroid technical drug capacity; Benefiting from the smooth operation of the project and the increase in product prices, the company’s preliminary accounting shows that from January to February 2022, the company achieved a total operating revenue of about 3.5 billion yuan, an increase of about 50% year-on-year; The net profit attributable to the parent company was about 560 million yuan, with a year-on-year increase of about 100%. We are optimistic that the company will actively promote the construction of new projects by virtue of its industry-leading engineering transformation advantages, and is expected to continuously increase its global market share with the help of Syngenta group’s brand and sales channels.
Risk tips: sharp decline in demand, less than expected launch of new production capacity, exchange risk, intensified market competition, etc.
