\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 096 Yunnan Yuntianhua Co.Ltd(600096) )
Business performance reached a record high, and the advantage of industrial chain integration continued to strengthen
Event: on March 29, 2022, Yunnan Yuntianhua Co.Ltd(600096) released the annual report of 2021: the operating revenue was 63.249 billion yuan, an increase of 21.37% year-on-year; The net profit attributable to shareholders of listed companies was 3.642 billion yuan, a year-on-year increase of 123877%; The weighted average return on net assets was 43.76%, an increase of 37.73 percentage points year-on-year. The gross profit margin of sales was 13.68%, with a year-on-year increase of 1.32 percentage points; The net profit margin of sales was 6.65%, with a year-on-year increase of 5.89 percentage points.
Among them, Q4 achieved a revenue of 15.617 billion yuan in 2021, a year-on-year increase of 27.98% and a month on month decrease of 6.50%; The net profit attributable to the parent company was 802 million yuan, an increase of 382.39% year-on-year and a decrease of 36.80% month on month; The weighted average return on net assets was 8.19%, an increase of 5.15 percentage points year-on-year and a decrease of 6.45 percentage points month on month. The gross profit margin of sales was 5.55%, a year-on-year decrease of 10.54 percentage points and a month on month decrease of 13.09 percentage points; The net sales interest rate was 5.63%, an increase of 3.87 percentage points year-on-year and a decrease of 3.17 percentage points month on month.
Comments:
Product prices increased, profits thickened, and the cost competitive advantage of industrial chain integration continued to strengthen
In 2021, the company achieved a total operating revenue of 63.249 billion yuan, an increase of 21.37% over the same period of last year; The net profit attributable to the parent company was 3.642 billion yuan, an increase of 123877% over the same period last year, and the operating performance hit a record high. The substantial growth of the company’s performance is mainly due to the increase of the price of the company’s main products. With the cyclical rise and price rise of the agricultural industry, as well as the insufficient supply of the chemical fertilizer industry affected by the epidemic situation and the dual control policy of energy consumption, the prices of the company’s main products urea, monoammonium phosphate and diammonium phosphate increased. At the same time, with the recovery of China’s economy, the market prices of chemical products of polyoxymethylene, yellow phosphorus and calcium feed companies have increased. In 2021, the average selling price of phosphate fertilizer of the company was 2958 yuan / ton, with a year-on-year increase of 39.33%; The average selling price of compound (mixed) fertilizer was 2486 yuan / ton, with a year-on-year increase of 20.45%; The average selling price of urea was 2233 yuan / ton, a year-on-year increase of 34.52%, and the average selling price of polyoxymethylene was 14766 yuan / ton, a year-on-year increase of 53.24%; The average selling price of yellow phosphorus was 19604 yuan / ton, a year-on-year increase of 42.17%; The average selling price of feed grade calcium phosphate was 2909 yuan / ton, with a year-on-year increase of 39.86%.
In 2021, the prices of bulk raw materials such as sulfur and coal increased significantly, and the operating cost of the company was 54.599 billion yuan, a year-on-year increase of 14.52%. The company effectively gave full play to the advantages of the whole industrial chain integration of high self-sufficiency of bulk raw materials such as phosphate rock, phosphoric acid and synthetic ammonia, gave full play to the advantages of centralized procurement platform, accurately controlled the procurement rhythm of bulk raw materials such as sulfur and coal, effectively alleviated the impact of the rise in the price of bulk raw materials, and continued to enhance the competitive advantage of product costs.
In 2021, the company continued to strengthen cost control and optimization through multiple channels, and the total scale of “three expenses” decreased significantly. The company’s sales expense ratio was 1.19%, a year-on-year decrease of 0.31 percentage points; The management fee rate was 1.94%, a year-on-year decrease of 0.24 percentage points; The company strengthened the centralized control and optimization of funds, reduced the scale of interest bearing liabilities, and the financial expense rate was 2.03%, a year-on-year decrease of 1.01 percentage points. The R & D expense rate of the company was 0.24%, with a year-on-year increase of 0.09%.
The high prosperity of the industry continues, and the company’s performance is expected to continue to grow
Benefiting from the rise in product prices, the company achieved rapid growth in performance in 2021. In 2022, the prices of the company’s main products continued to fluctuate at a high level. By the end of 2023, the price of ammonium phosphate was 26.30 yuan / ton, up from the end of 2023; The price of diammonium phosphate is 3920 yuan / ton, an increase of 3.98% compared with the end of 2021; The price of urea is 2826 yuan / ton, an increase of 14.35% compared with the end of 2021. Relying on the advantages of industrial chain integration and strong cost control ability, the company’s performance is expected to maintain a certain growth in 2022.
The reserves of phosphate rock resources and the processing capacity of phosphate chemical industry are leading in China, and the strategic layout of fine chemical industry cluster is accelerated
The company has rich phosphate rock resources. The existing phosphate rock resource reserves are nearly 800 million tons, the raw ore production capacity is 14.5 million tons, and the phosphate rock reserves and annual mining capacity are among the top in China. In 2021, the company produced 12.39 million tons of phosphate ore. The company has a production capacity of 800000 tons of monoammonium phosphate and 4.45 million tons of diammonium phosphate. Diammonium phosphate products have a market share of about 27% in China, ranking first in the country; The production capacity of yellow phosphorus is 30000 tons / year, the production capacity of feed grade calcium phosphate is 500000 tons / year, and the processing capacity of phosphorus chemical products ranks in the forefront of China. The company implements the development idea of “integration of mineralization, simultaneous development of damp and heat, organic extension of acid, fertilizer and salt”, actively builds the phosphate rock yellow phosphorus fine phosphate and phosphide industrial chain and phosphate rock wet process phosphoric acid phosphoric acid refining phosphate industrial chain. In addition to traditional phosphate fertilizer products, the company has developed and constructed PMPP, eppe phosphorus flame retardant projects, refined phosphoric acid projects and other phosphorus chemical projects, forming a perfect layout of phosphorus chemical industry. In 2021, Fushi technology’s 4000 ton / year phosphorus pentoxide project, 22000 ton / year polyphosphate (30000 ton / year food grade phosphoric acid) project, 1500 ton / year Fluoronitrobenzene project and 10000 ton / year magnesium fluorosilicate project of red phosphorus chemical industry will be fully completed; The joint venture’s annual output of 5000 tons of lithium hexafluorophosphate project was rapidly promoted, and the strategic layout of fine chemical industry cluster was accelerated.
Relying on the advantages of resources and production capacity, the company makes great efforts to layout the new energy industry
Relying on abundant phosphorus and fluorine resources, the company actively plans the transformation of new energy. The company’s annual output of 500000 tons of iron phosphate and supporting equipment project is under investment and construction. The phase I annual output of 100000 tons of iron phosphate project is expected to be completed and put into operation in the second half of 2022. At the same time, by introducing strategic partners, relying on the company’s rich phosphate associated fluorine resources and taking fluorosilicic acid as the basic raw material, the company accelerates the development of high value-added inorganic fluoride, fluoropolymers, new materials containing fluorine and high-end special chemicals, extends the fluorine industry chain, creates a fluorine chemical industry cluster and improves the competitiveness of the company’s fine fluorine chemical industry. The company cooperated with Do-Fluoride New Materials Co.Ltd(002407) to set up a joint-stock company fluorophosphorus electronic construction 2 × 15000 T / a anhydrous hydrofluoric acid (intermediate product) Co produces 15000 T / a high-quality white carbon black, 5000 t / a lithium hexafluorophosphate and 20000 t / a electronic hydrofluoric acid production unit. At present, the projects related to Do-Fluoride New Materials Co.Ltd(002407) cooperation are under construction. Considering the company’s sufficient resource reserves and perfect supporting facilities, the company will have obvious cost competitiveness and room for continuous expansion in the production of lithium hexafluorophosphate, iron phosphate and other battery materials. It is optimistic that the company will realize the further extension and upgrading of the industrial chain through the comprehensive utilization project of fluorosilicone resources and the implementation of this project, and fully enjoy the dividends brought by the rapid development of new energy.
Main work plan for 2022
Production and sales of main products: in 2022, the company expects to produce and sell 5.95 million tons of phosphorus compound fertilizer, 1.78 million tons of urea, 98000 tons of polyoxymethylene, 560000 tons of feed grade calcium hydrogen phosphate, 30000 tons of yellow phosphorus and 50000 tons of iron phosphate.
Transformation and upgrading project: the annual output of 100000 tons of wet process phosphoric acid refining unit (phase I) will be completed before March 30, 2022, and 100000 tons of wet process phosphoric acid refining unit (phase II), 200000 tons of hydrogen peroxide unit and 100000 tons of new battery material precursor unit will be completed before June 30, 2022. Joint venture with Do-Fluoride New Materials Co.Ltd(002407) with an annual output of 5000 tons of lithium hexafluorophosphate will be completed before June 30.
In order to achieve the above business objectives, the company will make every effort to do the following key work:
\u3000\u30001. We will continue to foster new competitive advantages in safety and environmental protection, accelerate the building of a green manufacturing system and consolidate the foundation of green development. In 2022, ensure that the injury rate per thousand people of the company is ≤ 0.5, achieve “zero death” in safety production and “zero pollution” in environmental protection, and ensure that the “long-term” number of main devices is ≥ 50.
\u3000\u30002. Grasp the changing trend of the market, supplement and strengthen the short board of operation, improve the operation mechanism, accurately control the supply chain, and give full play to the competitive advantage of the supply chain.
\u3000\u30003. Further improve the ability and level of financial control. Continue to promote the industry finance integration project, promote the centralized and overall management of funds, ensure the safe and efficient operation of the company’s capital chain, control the scale of three expenses, and continuously reduce the asset liability ratio.
\u3000\u30004. Actively promote the construction of new projects, further optimize the asset structure, and accelerate industrial transformation and upgrading.
\u3000\u30005. The three-year action of deepening the reform of state-owned enterprises has continuously promoted the reform of state-owned enterprises in depth. Improve the responsibility and authority system and operation mechanism to adapt to the changes of industrial chain and supply chain.
\u3000\u30006. We will comprehensively grasp key measures such as internal control, scientific research, equipment management and resource support.
Investment advice and profit forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be RMB 3.950 billion, 4.224 billion and 5.040 billion respectively, and the EPS will be RMB 2.15, 2.30 and 2.74/share, corresponding to 12.54, 11.73 and 9.83 times of PE, maintaining the “buy” rating.
Risk warning: macroeconomic risk; Raw material price and supply risk; The downstream demand is lower than the expected risk; Project construction risk; Safety production risk; exchange-rate risks; Product development and application risks.
