\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 426 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) )
Core view
Production capacity launch + high industry boom, with a significant increase in performance in 2021. The company released its annual report for 2021, and achieved an operating revenue of 26.636 billion yuan in 2021, a year-on-year increase of 103.10%; The net profit attributable to the parent company was 7.254 billion yuan, a year-on-year increase of 303.37%. In the fourth quarter, the operating revenue in a single quarter was 8.401 billion yuan, a year-on-year increase of 106.32%; The net profit attributable to the parent company was 1.642 billion yuan, a year-on-year increase of 223.40%. The basic earnings per share of the company is 3.43 yuan / share. In 2021, the gross profit margin and net profit margin of the company were 35.49% and 27.23% respectively. In 2021, benefiting from China’s economic recovery and the prominent importance of Chinese products in the global supply chain, the price of bulk chemicals increased rapidly, the profitability of the company’s main products increased, and acetic acid and organic amine with high industry prosperity increased the most. All expense rates of the company have declined, and the sales expense rate, management expense rate and R & D expense rate are 0.24%, 1.04% and 1.38% respectively. In 2021, the company’s R & D expenses were 368 million yuan, a year-on-year increase of 29.58%. According to the disclosure of the company’s annual report and considering various factors, the company expects to achieve a sales revenue of 30 billion yuan in 2022. According to the pre increase announcement of performance in the first quarter, the company is expected to realize a net profit attributable to the parent company of 52.25-2.45 billion yuan in the first quarter of 2022, with a year-on-year increase of 43% – 55%.
The company continued to deepen the layout of the industrial chain and promoted “new energy + + new materials” in two rounds. In 2021, the company increased the production of new energy and new materials projects in Dezhou base and the construction progress of Jingzhou base. The Jingzhou base project fully entered the construction stage in 2021. Among the 166000 tons of refined adipic acid quality improvement project and amide and nylon new material project in Dezhou base, 300000 tons / year caprolactam and supporting devices (including 480000 tons / year ammonium sulfate) and 300000 tons / year dimethyl carbonate production and quality improvement series technical transformation projects have been put into operation. The company’s planned 300000 t / a high-end solvent project was publicized for the second time on February 28, 2022; Nylon 66 high-end new material project (phase I) will be publicized for comments. Phase I plans to build a 200000 t / a adipic acid plant, and phase II plans to use phase I adipic acid as an intermediate to produce 80000 t nylon 66; The 300000 t / a dicarboxylic acid project has entered the link of EIA publicity for comments; In addition, the company plans to build a 120000 T / a PBAT degradable plastic project. Through technological R & D and breakthroughs and the advantages of coal chemical industry chain, the company continues to layout downstream, further broaden the industrial chain and develop into more subdivided fields.
Risk warning: the risk of sharp fluctuation of product price; The risk that the new production capacity is less than expected; The risk of large fluctuations in coal prices; Risks of tightening energy consumption and low-carbon policies.
Investment suggestion: increase the layout of “new materials + new energy” and maintain the “buy” rating. The company has made rapid progress in the development of electrolyte and solvent, continued to develop to the upstream raw materials of new energy, continued to cover the field of new materials such as nylon and degradable plastics, and other planned construction projects are sufficient. We believe that the company has diversified industrial development and long-term growth. It is estimated that the net profit attributable to the parent company in 22-24 years is RMB 8.663/93.03/9.979 billion, the corresponding EPS is RMB 4.09/4.41/4.73, and the corresponding PE of the current stock price is 8.1/7.5/7.0x, maintaining the “buy” rating.
