\u3000\u30 Jinzai Food Group Co.Ltd(003000) 37 Shenzhen Capchem Technology.Ltd(300037) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 6.951 billion yuan, a year-on-year increase of 134.76%; The operating profit was 1.537 billion yuan, a year-on-year increase of 152.21%; The net profit attributable to shareholders of listed companies was 1.307 billion yuan, a year-on-year increase of 152.36%.
The company released the performance forecast for the first quarter of 2022, and it is expected to realize the net profit attributable to the parent company of 482 ~ 513 million yuan, with a year-on-year increase of 210% ~ 230%.
The company has issued a plan for convertible bonds and plans to raise no more than 2 billion yuan (including this amount) for projects such as hankang electronic materials “lithium battery additive project with an annual output of 59600 tons”. The company issued an announcement on investing in the construction of Huizhou Zhoubang phase 3.5 solvent expansion project. It plans to invest in the construction of 150000 tons of carbonate solvent and CO production of ethylene glycol in Daya Bay petrochemical zone, Huizhou. The investment amount of the project is 195 million yuan, the construction period is 1.5 years, and it is expected to be gradually put into operation in 2023.
The company’s revenue increased significantly and the battery chemicals business performed well. In 2021, the company achieved an operating revenue of 6.951 billion yuan, a year-on-year increase of 134.76%, of which the battery chemicals business grew the most strongly, with a revenue of 5.270 billion yuan, a year-on-year increase of 217.63%, and an increase of 3.611 billion yuan.
The gross profit expanded significantly accordingly. In 2021, the gross profit reached 2.467 billion yuan, a year-on-year increase of 131.41%, and the gross profit margin was 35.49%, a slight decrease of 0.51 PCTs year-on-year. Among them, the gross profit margin of battery chemicals and semiconductor chemicals increased by 5.87/4.75 PCTs respectively, while the gross profit margin of capacitor chemicals and organic fluorine chemicals was relatively stable.
During this period, the overall cost rate decreased and the R & D investment increased significantly. In 2021, the company’s period expense rate was 13.50%, a year-on-year decrease of 1.86pcts. R & D expenses increased by 123.00% year-on-year, with the highest expenditure in recent years; The R & D expense rate decreased by 0.31 PCTs year-on-year, and the company continued to grow, opening up space for R & D investment.
The profit growth was good, and the growth was faster in the second half of the year. In 2021, the company realized a net profit attributable to the parent company of 1.307 billion yuan, with a year-on-year increase of 152.36%. Among them, the net profit attributable to the parent company in each quarter increased by 67.90% / 57.51% / 102.58% / 216.60% year-on-year and 5.76% / 8.04% / 80.93% / 53.15% month on month respectively
The project will continue to be built, and it is expected to be intensively put into operation in 2022 and 2023. Huizhou Zhoubang phase III project will be put into operation in 2021, and Fubang, Poland and haidefu projects are expected to be put into operation in 2022 and 2023.
Profit forecast and Valuation: many projects of the company have been put into operation and are expected to continue to grow rapidly. Therefore, we raised the net profit of the company from 1.327 billion yuan and 1.645 billion yuan to 1.934 billion yuan and 2.346 billion yuan respectively from 2022 to 2023. Focusing on functional chemicals, the company is the leading enterprise in the field of lithium battery materials and electronic chemicals in China, with obvious integration advantages. We expect that the company’s EPS from 2022 to 2024 will be 4.69/5.69/6.61 yuan respectively, and the current price corresponding to PE will be 17.40/14.34/12.33 times respectively. Maintain the “buy” rating.
Risk warning: market competition intensifies the risk; Price fluctuation risk of raw materials; Risks of safe production and ecological environment protection; The progress of raised investment projects is less than expected; The first quarter performance forecast is the result of preliminary calculation, and the specific financial data shall be subject to the first quarter report of 2022 officially disclosed by the company
