\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 05 Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) )
The annual profit increased significantly, and the construction of new energy projects accelerated
Event: on March 29, 2022, Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) released the annual report of 2021: the operating revenue was 1.536 billion yuan, with a year-on-year increase of 46.30%; The net profit attributable to the shareholders of the listed company was 189 million yuan, a year-on-year increase of 355.83%; The weighted average return on net assets was 16.06%, an increase of 11.70 percentage points year-on-year. The gross profit margin of sales was 20.59%, with a year-on-year increase of 10.19 percentage points; The net profit margin of sales was 12.64%, an increase of 8.70 percentage points year-on-year. Among them, Q4 achieved a revenue of 497 million yuan in 2021, an increase of 90.04% year-on-year and 21.45% month on month; The net profit attributable to the parent company was 89 million yuan, an increase of 112752% year-on-year and 45.76% month on month; The weighted average return on net assets was 6.48%, an increase of 7.34 percentage points year-on-year and 1.22 percentage points month on month. The gross profit margin of sales was 23.86%, with a year-on-year increase of 59.09 percentage points and a month on month decrease of 0.28 percentage points; The net sales interest rate was 18.11%, with a year-on-year increase of 21.47 percentage points and a month on month increase of 2.70 percentage points. Comments: the main products ushered in the boom cycle, and the profitability was significantly enhanced. In 2021, the company achieved an operating revenue of 1.536 billion yuan, a year-on-year increase of 46.30%; The net profit attributable to the parent company was 18900 yuan, with a year-on-year increase of 355.83%. The sales volume of “wet process phosphate fertilizer” and “fine phosphate” products of Guangxi company increased rapidly, which mainly benefited from the rise of the sales volume of “wet process phosphate fertilizer” and “phosphate products”. According to Zhuo Chuang consulting, the average price of feed grade dicalcium phosphate in 2021 was 2435 yuan / ton, a year-on-year increase of 58%; The average price of feed grade calcium dihydrogen phosphate was 3583 yuan / ton, up 33.65% year-on-year. In 2021, the company’s feed grade calcium dihydrogen phosphate achieved a revenue of 223 million yuan, a year-on-year increase of 28.23%; Feed grade dicalcium phosphate achieved a revenue of 280 million yuan, a year-on-year increase of 33.46%; Granular heavy superphosphate achieved a revenue of 707 million yuan, a year-on-year increase of 21.58%.
The wet process phosphoric acid purification plant is about to be put into operation, and the profitability of the company is expected to continue to improve. In 2018, the company implemented a non-public offering of shares to raise funds for the “wet process phosphoric acid purification and fine phosphate project”. The project takes the graded utilization of phosphoric acid as the theme and implements the principle of “combination of acid, fertilizer and salt”. After the completion of the project, the comprehensive utilization capacity of 145000 T / a phosphoric acid, 140000 T / a phosphate fertilizer, 180000 T / a phosphate, 15000 T / a sodium fluosilicate and 1 million T / a phosphogypsum will be formed. The implementation of the project is of great significance for the company to expand the in-depth utilization of purified phosphoric acid, improve the added value of products, enrich product lines and enhance competitiveness. In the first half of 2021, the phase I phosphate fertilizer and phosphate plant of Guangxi project have been put into operation, making a great contribution to the performance growth in 2021. By the end of 2021, Guangxi project was basically completed, laying a solid foundation for full production. 100000 tons of wet process purified phosphoric acid will become a new growth point of the company’s performance this year. Promote the construction of iron phosphate and lithium iron phosphate projects and accelerate the transformation of new energy. In 2021, the basic construction of the company’s 5000 t / a iron phosphate production plant was completed and some products were produced. In October 2021, the company and the people’s Government of Gangkou District of Fangchenggang City planned to sign the project cooperation framework agreement recently to propose “50000 T / a battery grade lithium iron phosphate cathode material precursor material iron phosphate and supporting Shanghai Pudong Development Bank Co.Ltd(600000) T / a sulfur based sulfuric acid production project” and “100000 t / a battery grade lithium iron phosphate cathode material project”. At present, the 50000 T / a battery grade lithium iron phosphate cathode material precursor material iron phosphate and the supporting Shanghai Pudong Development Bank Co.Ltd(600000) T / a sulfur based sulfuric acid project have obtained the EIA approval on February 28, 2022, and the project is in the preparatory construction stage; The EIA reports of the 100000 t / a battery grade lithium iron phosphate cathode material precursor material iron phosphate project and the 100000 t / a battery grade lithium iron phosphate cathode material project are being handled. The company has two significant advantages in iron phosphate production: (1) raw material cost advantage. Compared with iron phosphate production enterprises that purchase phosphorus sources, the company adopts wet purification process to produce phosphoric acid, which has the cost advantage of phosphorus sources. (2) Manufacturing cost advantage. The by-products in the production of iron phosphate are coupled with the company’s existing phosphorus chemical system. The company can make full use of the by-products, so as to reduce the cost of environmental protection disposal in production, reduce the intermediate chain of manufacturing links and reduce the manufacturing cost. In the future, the company is expected to further expand the production scale of iron phosphate, give full play to the above two advantages and occupy a place in the iron phosphate / lithium iron phosphate track.
Main work of the company in 2021
Focusing on the main business, the operating revenue in 2021 was 1535877600 yuan, an increase of 486069100 yuan or 46.30% compared with 1049808500 yuan in the previous year; The net profit attributable to the parent company was 189064900 yuan, an increase of 14758800 yuan or 355.83% compared with 414769 million yuan in the previous year. In 2021, the capital construction of the “wet process phosphoric acid purification and fine phosphate project” invested by the holding subsidiary Guangxi Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) was completed, which contributed a large profit when part of it was put into operation. The basic completion of Fangchenggang purified phosphoric acid project has laid a solid foundation for the company to enter the new energy materials industry and the company’s transformation. Phosphate rock strategic layout company attaches great importance to the self-sufficiency of phosphate rock. It has been conducting relevant research and constantly seeking opportunities for cooperation with mines, so as to control phosphate rock resources, improve phosphate rock self-sufficiency rate and reduce the adverse impact of changes in phosphate rock supply and demand. In 2021, the company continued to strengthen cooperation with upstream mines to improve the company’s raw material guarantee. Promote the industrialization and utilization of phosphogypsum. The company attaches great importance to the development and utilization of phosphogypsum, makes technical exploration and market attempt on the building materials of phosphogypsum in Kunming Dongchuan factory, and develops the potential value of phosphogypsum. The holding subsidiary Guangxi Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) formulated the strategy of phased development and comprehensive utilization to ensure 100% market-oriented utilization of phosphogypsum. It is planned to build a new energy materials company, actively respond to the national “double carbon” strategy, take the wet process phosphoric acid purification technology as the core, give full play to the advantages of the company’s wet process phosphoric acid and iron orthophosphate, build the integrated capacity of phosphate rock wet process phosphoric acid iron phosphate lithium iron phosphate, strengthen the cost advantages of the company’s iron phosphate and lithium iron phosphate, and improve the electrochemical performance of the company’s products, Implement the lithium carbonate supply and cooperation plan with battery customers as soon as possible, and speed up the capacity planning and construction of new energy materials such as iron phosphate and lithium iron phosphate.
Main work plan of the company in 2022
In 2022, the company will continue to uphold the development concept and strategic development objectives, adhere to technological innovation, increase R & D investment, further improve the company’s technological innovation ability, and strengthen the construction of staff quality and management level. Further explore the market outside China in the company’s existing market and actively respond to market changes. At the same time, effectively control costs and strive to maintain the synchronous growth of sales and net profit. Adhere to management innovation, continuously strengthen internal control and standardized operation, and comprehensively improve the operation and management efficiency and market competitiveness of the enterprise, so as to maintain the sustainable and healthy development of the company.
Consolidate management and steadily promote the construction of new energy materials projects. Continue to strengthen the company’s management advantages, further comb and improve the company’s production, operation and management processes, strengthen the construction of internal control, comprehensively improve the enterprise’s operation and management ability, improve and optimize the company’s management systems, and establish a scientific and efficient management system. On the basis of strengthening management, we will orderly promote the production and production of raised investment projects in Guangxi and the construction of iron phosphate and lithium iron phosphate new energy materials projects, strive to put into operation as soon as possible, adapt to the rapid growth demand of downstream industries and enhance the profitability of the company. Innovate marketing strategies and expand markets at home and abroad. On the one hand, on the basis of maintaining the existing high-quality customers, seize the market opportunity, key directions and key products, further explore the Chinese and international markets, vigorously promote the company’s feed grade phosphate and phosphate fertilizer, strive to sell all the purified phosphoric acid products produced and achieve good results in the market. On the other hand, the 5000 t / a iron phosphate produced by the company and the cooperation with downstream to produce lithium iron phosphate are introduced to the market, which lays a foundation for the company to expand customers and accumulate experience. Strengthen technological innovation and optimize the industrial structure. Further increase R & D investment, improve the company’s technological innovation ability, and focus on R & D of new processes, new technologies and new products related to the company’s next development, so as to lay a solid foundation for the company’s development to fine phosphorus chemical industry and new energy materials related industries. Enhance team building and improve team level. Further promote the quality and technical level of the staff to further meet the needs of the company.
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 382 million, RMB 477 million and RMB 664 million respectively, and the EPS will be RMB 255, RMB 318 and RMB 443 per share, corresponding to 14.30, 11.46 and 8.23 times of PE, maintaining the “buy” rating. Risk tips: macroeconomic risks; 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
