\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 096 Yunnan Yuntianhua Co.Ltd(600096) )
It has achieved profits for five consecutive years, and the net profit in 2021 increased by 1239% year-on-year, reaching a record high. The company issued the annual report for 2021: in 2021, benefiting from the sharp recovery of the prosperity of phosphorus chemical industry and the company’s active grasp of the market change trend, the company’s profits were significantly repaired and the profit growth rate was much higher than the revenue growth rate: in 2021, the company realized a total operating revenue of 63.249 billion yuan (year-on-year + 21.37%); The net profit attributable to the parent company was 3.642 billion yuan (year-on-year + 123877%); The non net profit attributable to the parent company was RMB 3.511 billion (year-on-year + 723750%). That is, in the single quarter of 2021q4, the company realized an operating revenue of 15.617 billion yuan (year-on-year + 27.98%), and a net profit attributable to the parent company of 802 million yuan (year-on-year + 382.39%). So far, the company has made profits for five consecutive years, and the performance in 2021 has reached the highest level since the company was listed (1997). It is worth mentioning that the company’s internal management has further strengthened its financial control ability, “reform empowerment” has achieved remarkable results, and the asset structure has been greatly improved.
The landscape of phosphate fertilizer has been greatly restored. At present, China’s “guaranteed supply and stable price” has helped stabilize spring farming production. On the demand side, due to the higher demand growth rate of agricultural fertilizer than in previous years and the outbreak of demand in the field of new energy in 2021, the price of phosphorus chemical products has increased significantly due to the reduction of phosphorus ore production and the closure of some phosphorus chemical enterprises after the supply side reform. According to the announcement of the company, in 2021, the average prices of phosphate fertilizer, compound (mixed) fertilizer, urea, polyformaldehyde, yellow phosphorus and feed grade calcium phosphate products of the company were 2958, 2486, 2233, 14766, 1964 and 2909 yuan / ton respectively, with a year-on-year increase of 39.3%, 20.4%, 34.5%, 53.2%, 42.2% and 39.9% respectively. At present, the cost of phosphate fertilizer in China is strongly supported by raw materials such as sulfur and under China’s policy of “ensuring supply and stabilizing price”, the price remains relatively stable, but the price of overseas phosphate fertilizer is high and continues to rise. Under the main tone of ensuring the supply and price of chemical fertilizer, it is expected that the price of phosphate fertilizer in China will continue to operate smoothly in the short term. In the future, we are optimistic that the company will continue to promote the integration and coordinated development of fertilizer and modern agriculture.
Enter the field of new energy and build a new energy battery industry cluster. In 2021, Yunnan Yuntianhua Co.Ltd(600096) group seized the historic opportunity of the rapid development of new energy battery industry and launched the 500000 T / a iron phosphate battery precursor and supporting project of Yunnan Yuntianhua Co.Ltd(600096) shares. We expect the phase I 100000 t iron phosphate plant to be put into operation around August 22. In addition, the company plans to cooperate with Yuxi Municipal People’s government, Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , and Huayou holdings to promote the formation of the whole industrial chain cluster of new energy batteries in Yuxi.
Risk warning: price fluctuation of raw materials; Downstream demand is lower than expected; The progress of projects under construction is less than expected.
Investment advice: maintain the “buy” rating. Phosphating is expected to last for a long time. The company will continue to promote high-quality development through deepening reform and innovation. We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 4.466/46.38/4.751 billion respectively, with a year-on-year increase of 22.6% / 3.9% / 2.4%; Corresponding to current diluted share price of RMB 10.2/10.52, corresponding to diluted share price of RMB 10.2/10.52.
