\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 426 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) )
Key investment points
The company released its annual report for 2021, and achieved an operating revenue of 26.636 billion yuan, 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 3.03 times; The net profit deducted from non parent company was 7.212 billion yuan, a year-on-year increase of 3.09 times.
The revenue of major products increased significantly and the profitability improved significantly. In terms of products, the company's revenue from new material related products was 11.556 billion yuan, a year-on-year increase of 149.41%, and the gross profit margin increased by 21.62 percentage points to 25.56%; The revenue of organic amine business was 5.918 billion yuan, with a year-on-year increase of 142.38%, and the gross profit margin increased by 11.47 percentage points to 53.73%; The revenue from fertilizer business was 4.141 billion yuan, a year-on-year increase of 23.65%, and the gross profit margin increased by 2.2 percentage points to 28.86%; The revenue from acetic acid and derivatives was 3.463 billion yuan, a year-on-year increase of 143.08%, and the gross profit margin increased by 30.29 percentage points to 53.57%. The company's business income increased significantly, benefiting from the sharp rise in the price of main products. The gross profit margin and net profit margin of the company in 2021 were 35.49% and 27.23% respectively, with a year-on-year increase of 14.12 and 13.52 percentage points respectively. Quarter by quarter, the company's annual performance peak appeared in Q2. The net profit attributable to the parent company in a single quarter was 2.225 billion yuan, and the gross profit margin (42.26%) and net profit margin (33.67%) were the highest in the year; Q3 and Q4 profits fell month on month, mainly due to the tight coal supply and sharp rise in prices in the second half of the year, which compressed the company's profit space to a certain extent.
Fully promote the project construction, and the production capacity is expected to be gradually released. The company's existing capacity under construction includes 1 million tons of urea, 1 million tons of acetic acid, 150000 tons of DMF, 150000 tons of mixed methylamine, 200000 tons of nylon 6 products, 80000 tons of nylon 66 products, 120000 tons of PBAT, Shanghai Pudong Development Bank Co.Ltd(600000) tons of dimethyl carbonate, 300000 tons of methyl ethyl carbonate and 50000 tons of diethyl carbonate. At present, the company's amide and nylon new material project is pushed forward as scheduled according to the construction plan; The elements and conditions of the second base project have been implemented successively, and the project construction has been gradually started. With the steady progress of the company's projects under construction, the company's performance is expected to be released gradually.
Investment suggestion: Recently, affected by the conflict between Russia and Ukraine, the international oil price has remained high. Under the background of ensuring supply and stable price in China, the trend of coal price is relatively stable, and coal chemical enterprises have cost performance ratio. At the same time, the steady progress of several projects under construction of the company is conducive to the continuous expansion of the company's scale and the guarantee of future performance growth. The company is a leading coal chemical enterprise with cost and environmental protection technology advantages and capacity expansion potential. It is expected to benefit from the supply side reform of the chemical industry under the "double carbon" goal. It is estimated that the basic earnings per share of the company from 2022 to 2023 will be 3.47 yuan and 3.84 yuan, and the current share price corresponding to PE is 9.51 times and 8.59 times respectively, maintaining the recommended rating.
Risk warning: there is a risk that the sharp fluctuation of crude oil and coal prices will lead to the decline of product price and price difference; The risk of intensified industry competition; Macroeconomic pressure leads to the risk that the downstream demand is lower than expected; Risk that the capacity release of projects under construction is less than expected; Occurrence of natural and man-made disasters and other force majeure events
