\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 83 Inner Mongoliayuan Xing Energy Company Limited(000683) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved revenue of RMB 12.149 billion (year-on-year + 57.81%) and net profit attributable to the parent company of RMB 4.951 billion (year-on-year + 717111%) At the same time, the company released the performance forecast for the first quarter of 2021. It is estimated that the net profit attributable to the parent company in 22q1 will be 750 ~ 790 million yuan (year-on-year + 125.19% ~ + 137.20%).
Efficient operation of various businesses and continuous promotion of industrial structure adjustment: the company gradually promoted industrial structure adjustment. On September 23, 2021, the company announced that it planned to liquidate and cancel the wholly-owned subsidiary yuanxingjiangshan. On September 15, it announced that it planned to transfer all 70% equity of its holding subsidiary Boyuan coal chemical to Symantec coal industry for RMB 3.664 billion, After that, 80% equity of Boyuan Lianhua and 51% equity of Boyuan water were transferred to Inner Mongolia Eerduosi Resources Co.Ltd(600295) Quanshun Industrial Co., Ltd. in November and December 2021. In addition, it announced the termination of Boyuan chemical ethylene glycol project in December 2021, so as to strategically withdraw from coal, natural gas to methanol and downstream industries. At present, it focuses on the production and sales of soda, baking soda and coal to urea. During the reporting period, the company’s main businesses developed steadily, the production units of soda, baking soda and urea operated efficiently, and the product sales prices increased year-on-year. According to the announcement, in 2021, the company’s Soda capacity utilization rate reached 85.86%, year-on-year + 4.43pct, baking soda capacity utilization rate reached 85.86%, year-on-year + 4.32pct, and urea capacity utilization rate was 107.13%, which remained at a high level. At the same time, in terms of stripped coal business, During the reporting period, the company’s coal output reached 3.5151 million tons, a year-on-year increase of + 134.36%, and the average selling price (excluding tax) reached 604.19 yuan / ton, a year-on-year increase of + 83.02%, which made a great contribution to the company’s profits.
The prosperity of soda industry is rising, and the main industry of natural soda is developing rapidly: the company is the largest manufacturer of soda and baking soda made from natural soda in China. In the future, it is expected to benefit from the favorable conditions of both supply and demand, and the prosperity of China’s Soda Industry is rising. On the demand side, China’s accelerated realization of the “double carbon” goal has driven the rapid development of the photovoltaic and lithium battery industries, forming a large demand for raw material soda ash. On the supply side, synthetic soda ash, as a product with high energy consumption in the production process and by-products that will have a certain impact on the environment, the production capacity probability will be limited by the policy side, Under the background of increasingly stringent environmental protection policies, the natural alkali production capacity with significant advantages in production cost and carbon emission is expected to be gradually expanded. During the reporting period, the company continued to focus on the development of natural alkali business. In December 2021, the company announced that it planned to purchase 14% equity of Yingen mining held by nabichuan in the form of cash payment. At the same time, it planned to increase the capital of Yingen mining with cash of 3.73 billion yuan. After the transaction is completed, it will hold 60% equity of Yingen mining, and Yingen mining will also change from a joint-stock subsidiary of the company to a holding subsidiary, In June 2021, the Talusi Natural Alkali Mine of Alashan Right Banner of Yingen mining obtained the mining license issued by the natural resources bureau of Alashan League of Inner Mongolia Autonomous Region, involving the supporting construction of the project with an annual output of 7.8 million tons of soda and 800000 tons of baking soda. According to the government of ayou banner, the commencement ceremony of Boyuan natural alkali comprehensive development and utilization project was held in ayou banner on March 23, 2022. In the future, with the gradual advancement of the project, The company’s profitability is expected to continue to improve.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 3.26 billion yuan, 5.17 billion yuan and 7.26 billion yuan respectively, maintaining the Buy-A investment rating.
Risk warning: the landing of projects under construction is not as expected; The macro environment is less than expected
