\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 063 Anhui Wanwei Updated High-Tech Material Industry Co.Ltd(600063) )
The performance of 2022q1 hit a new record, and the volume and price of PVA increased simultaneously to improve the profit
According to the company’s announcement, in the first quarter of this year, the company actively responded to market changes, seized market opportunities, effectively coordinated the production load, commodity volume, domestic and foreign trade market conditions and price policies of various products in the industrial chain, and achieved remarkable results. During the reporting period, the volume and price of the company’s main product polyvinyl alcohol (PVA) increased, and the profitability of the products increased significantly. Mengwei technology, a subsidiary of the company, gave full play to the advantages of the whole industrial chain and scale, and further strengthened its market competitiveness. The subsidiary, Guangxi wanwei, has further promoted the development of biomass chemical industry, and its business situation continues to improve. According to the data of Zhuo Chuang information, as of March 29 this year, the average market price of PVA was 22900 yuan / ton, the product price was high, the inventory of PVA industry was 1.8000 tons, and the inventory level remained low. According to our calculation, at present, the gross profit per ton of calcium carbide PVA is more than 13000 yuan. Considering that the overall supply and demand pattern of PVA industry is in a tight balance and the cost of ethylene PVA increases under the background of high oil price, the boom situation of high PVA price is expected to continue Anhui Wanwei Updated High-Tech Material Industry Co.Ltd(600063) it is equipped with 450000 tons of calcium carbide and has strong cost control ability. We are optimistic about the integrated layout of “calcium carbide vinyl acetate PVA” and believe that the profitability of the company’s main businesses is expected to continue well.
Forge ahead to the 14th five year plan and rebuild a new Anhui dimension.
According to the company’s annual report, during the reporting period, the company established the development goal of the company’s “five industrial chains” according to the “14th five year plan”. The company’s annual output of 10000 tons of PVB resin project has reached the production standard, and the product quality ranks in the forefront of the industry; The annual output of 35000 tons of differentiated polyester project has been successfully tested at one time; The trial run of the project with an annual output of 20000 tons of rubber powder was successful. In addition, the company will speed up the progress of construction projects. The annual output of 60 thousand tons of VAE emulsion, 5000 tons of membrane level PVA, 7 million square meter polarizer, 7 million square meters PVA optical film and other projects will soon be completed and put into operation, gradually forming a new material industry cluster of the company, laying a solid foundation for the “forge ahead in 14th Five-Year and rebuild new Wan Wei”. As the company’s new projects continue to increase, we are optimistic about the company’s profitability and are expected to expand its new projects in an orderly manner.
Profit forecast and valuation
The company is a leader in China’s PVA industry. PVA products have great advantages over their peers in scale, category and technology. In addition, the new material fields such as PVA optical film and PVB resin actively arranged by the company are expected to open a growth channel for the company. We are optimistic about the company’s strategic layout and technical strength. It is estimated that the company’s net profit from 2022 to 2024 will be 1.386 billion yuan, 1.558 billion yuan and 1.772 billion yuan respectively, with a year-on-year increase of 41.14%, 12.37% and 13.78%, corresponding to 8.31, 7.39 and 6.50 times of PE respectively, maintaining the “buy” rating.
Risk tips
The prices of raw materials and products fluctuate greatly; Trade and exchange rate risks; Brain drain risk; Environmental protection policy risk, etc.
