\u3000\u30 Jinzai Food Group Co.Ltd(003000) 37 Shenzhen Capchem Technology.Ltd(300037) )
The company released the annual report of 2021, and the performance increased by 152% year-on-year; The electrolyte business volume of the company increased rapidly, and the business of capacitor chemicals and organic fluorine chemicals increased rapidly, maintaining the overweight rating.
Key points supporting rating
The company’s profit in 2021 increased significantly year-on-year, which was in line with expectations: the company released its annual report in 2021 and achieved an operating revenue of 6.951 billion yuan, a year-on-year increase of 134.76%; The profit was 1.307 billion yuan, a year-on-year increase of 152.36%; Deduct 1.233 billion yuan of non-profit, a year-on-year increase of 156.17%. According to the calculation, 2021q4 achieved a profit of 439 million yuan, a year-on-year increase of 204.72% and a month on month increase of 1.79%; Deduct non-profit 421 million yuan, with a year-on-year increase of 207.63% and a month on month increase of 1.75%. The company also announced that it plans to distribute a cash dividend of 6.80 yuan (including tax) for every 10 shares and increase 8 shares for every 10 shares to all shareholders with capital reserve. The performance of the company’s annual report is in line with expectations.
Outstanding performance in 2022q1: the company also released the performance forecast for the first quarter of 2022, with an expected profit of 482513 million yuan, a year-on-year increase of 210% – 230%.
The business volume of battery chemicals increased at the same time, and other businesses developed steadily: the company’s sales volume of battery chemicals in 2021 was 92200 tons, with a year-on-year increase of 141.24%, the operating revenue was 5.270 billion yuan, with a year-on-year increase of 217.63%, the gross profit margin was 31.63%, with a year-on-year increase of 5.87 percentage points. It is expected that the company’s annual electrolytic liquid shipment will exceed 75000 tons. In addition, the operating income of the company’s capacitance chemicals business was 712 million yuan, a year-on-year increase of 32.49%, and the operating income of organic fluorine chemicals business was 693 million yuan, a year-on-year increase of 23.36%.
Issue 2 billion yuan of convertible bonds and continuously improve the production capacity layout: the company issued a convertible bond plan and plans to raise no more than 2 billion yuan for hankang electronic materials “59600 tons of lithium battery additives project”, Tianjin semiconductor chemicals and lithium battery materials project, Sanming haisifu “high-end fluorine fine chemicals project (phase II)” and Jingmen “283000 tons of lithium battery materials project”. In addition, the company plans to invest in the construction of an annual output of 150000 tons of carbonate solvent and CO production of ethylene glycol in Huizhou, which is expected to be gradually put into operation in 2023.
Valuation
Under the current share capital, combined with the company’s 2021 annual report and industry changes, we adjusted the company’s predicted earnings per share from 2022 to 2024 to 4.79/5.50/6.42 yuan (the original predicted diluted earnings per share from 2022 to 2023 was 3.93/4.86 yuan), corresponding to a P / E ratio of 18.1/15.7/13.5 times; Maintain the overweight rating.
Main risks of rating
Price competition exceeds expectations; The demand for new energy vehicles does not meet expectations; The release of new capacity is not as expected; New product development fails to meet expectations; The impact of covid-19 epidemic exceeded expectations.
