\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 426 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) )
The annual performance of 2021 is in line with expectations. The company released its 2021 annual report. In 2021, it realized an operating revenue of 26.64 billion yuan, a year-on-year increase of 103.1%; The net profit attributable to the parent company was 7.25 billion yuan, with a year-on-year increase of 303.4%. It is planned to distribute a cash dividend of 8.00 yuan (including tax) for every 10 shares to all shareholders.
The company released the main business data from January to February 2022 and the announcement of pre increase of performance in the first quarter. From January to February 2022, the company achieved a total operating revenue of about 5.3 billion yuan, an increase of about 75% year-on-year; The net profit attributable to shareholders of listed companies was about 1.6 billion yuan, an increase of about 110% year-on-year. In the first quarter of 2022, the net profit attributable to shareholders of listed companies is expected to reach 2.25 billion yuan to 2.45 billion yuan, an increase of 43% to 55% year-on-year.
Key points supporting rating
The average sales price of acetic acid and derivatives has increased significantly, and organic amines and fertilizers are expected to maintain a high boom. In 2021, many products of the company maintained high prosperity. Among them, the revenue of acetic acid and derivatives reached 3.46 billion yuan, a year-on-year increase of 143.1%, the sales volume was 587000 tons, a year-on-year increase of 0.5%, the average sales price increased by 141.9%, the gross profit margin was 53.6%, and a year-on-year increase of 30.3pcts; The revenue of organic amine products reached 5.92 billion yuan, a year-on-year increase of 142.4%, the sales volume was 573000 tons, a year-on-year increase of 33.1%, the average sales price increased by 82.1% year-on-year, the gross profit margin was 53.7%, and a year-on-year increase of 11.5 PCTs; The revenue of fertilizer products reached 4.14 billion yuan, a year-on-year increase of 23.7%, the sales volume was 2.32 million tons, a year-on-year decrease of 7.5%, the average sales price increased by 33.7%, the gross profit margin was 28.9%, and a year-on-year increase of 2.2pcts. The company predicts that China’s agricultural demand for chemical fertilizer industry is expected to increase in 2022, and the industrial demand is expected to be relatively stable; Policies such as ensuring supply and price stability and dual control of energy consumption may have a positive impact on the chemical fertilizer industry.
New materials and related products continue to be sold in large quantities. The company’s new material related products mainly include adipic acid and intermediate products, isooctanol, ethylene glycol, caprolactam and other products. In 2021, the company’s revenue related to new materials reached 11.56 billion, a year-on-year increase of 149.4%; The sales volume reached 1.393 million tons, with a year-on-year increase of 32.2%, and the average sales price increased by 88.5% year-on-year; The gross profit margin was 25.6%, with a year-on-year increase of 21.6pcts. The company has gradually fulfilled its performance in the layout of new material related products. With the further improvement of capacity utilization of some new material products, the performance of new material related products is expected to continue to increase.
Several projects have been steadily promoted, and Jingzhou base has entered the stage of comprehensive construction. During the reporting period, the company’s refined adipic acid quality improvement project (adipic acid production capacity increased by 166600 T / a), caprolactam and supporting devices (increased caprolactam production capacity by 300000 t / A and ammonium sulfate production capacity by 480000 T / a) were completed and put into operation as scheduled; The dimethyl carbonate series technical transformation project (300000 t / a dimethyl carbonate capacity) has been successfully put into operation. At present, the capacity utilization rate has reached 35%, which has laid a foundation for the company to enter the new energy track; Jingzhou base project has entered the stage of comprehensive construction, which has expanded the space for the development of the company.
Valuation
The annual performance increased significantly, and many projects were successfully put into operation. It is estimated that the EPS of the company from 2022 to 2024 will be 3.44 yuan, 3.61 yuan and 3.86 yuan respectively, and the PE corresponding to the current stock price will be 9.6 times, 9.1 times and 8.5 times. Maintain buy rating.
Main risks of rating
Changes in the macroeconomic situation; The company’s new project is put into operation less than expected; The price of chemical fertilizer products fell sharply.
