\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 141 Hubei Xingfa Chemicals Group Co.Ltd(600141) )
The leading enterprise of phosphorus chemical industry has adjusted its business structure, consolidated its main business and ushered in a performance turning point: Hubei Xingfa Chemicals Group Co.Ltd(600141) is located in Yichang, Hubei Province, with rich phosphate rock resources. The company takes the lead in phosphate rock reserves in China and has a perfect layout of phosphorus chemical industry chain. It is one of the leading enterprises of phosphorus chemical industry in China. Since 2021, the company has actively adjusted its business structure and intends to reduce the scale of trade business with low profitability and consolidate its main business. The period coincided with the strong downstream demand and the sharp rise in the prices of main products and raw materials. The company ushered in a performance turning point. In 2021, the company achieved an operating revenue of 23.607 billion yuan, a year-on-year increase of 28.88%; The net profit attributable to the parent company was 4.247 billion yuan, a year-on-year increase of 583.58%.
Relying on the advantages of resources, the company promotes the "integration of mining, electrification and chemical industry" and creates a "phosphorus silicon salt coordination" circular industrial chain, with remarkable cost control effect: the company adheres to green power generation, actively builds its own hydropower station and photovoltaic power station relying on the rich hydropower and lighting resources in the region, implements the "integration of mining, electrification and chemical industry" strategy, and gradually highlights the cost advantage of self generated power consumption under the background of stricter energy consumption control. The company produces yellow phosphorus from its own power generation and phosphate rock. The production capacity is mainly used to produce downstream fine phosphate and glyphosate. It carries out silicone business with methyl chloride, a by-product of glyphosate, as the raw material, and feeds glyphosate plant with hydrochloric acid, a by-product of organosilicon. The two provide raw materials to each other to form a "phosphorus silicon salt synergy" circular industrial chain, with outstanding environmental protection benefits and comprehensive economic benefits. At the same time, the company is also expanding its production capacity to the upstream raw material end of its main business. In the future, the cost control ability of the company at the raw material end will be gradually enhanced, so as to improve the profitability of its main business.
Grasp the advantages of phosphorus source and join hands with Zhejiang Huayou Cobalt Co.Ltd(603799) phosphorus lithium to enter the new energy material industry: the company has a large amount of phosphorus resources and has been deeply cultivated in the field of fine chemical industry for several years. It has great advantages in producing iron phosphate with phosphorus source as the main raw material and end cost Zhejiang Huayou Cobalt Co.Ltd(603799) in recent years, it has actively explored lithium resources, and overseas enterprises holding and participating in shares are rich in lithium resources. The two complement each other in terms of phosphorus and lithium, jointly layout the capacity of iron phosphate and lithium iron phosphate, and enter the new energy industry, which will help the company realize the transformation, upgrading and high-quality development of phosphorus chemical industry.
Wet electronic chemicals welcome major development opportunities, and Xingfu electronics, a subsidiary, is favored by strategic investors such as national large funds: under the background of unstable international geopolitical situation, continuous global epidemic and frequent extreme weather in recent years, the uncertainty of overseas import of key new materials such as high-end wet electronic chemicals has increased, and China's wet electronic chemicals usher in major development opportunities. Xingfu electronics, a subsidiary of the company, has been deeply engaged in the field of wet electronic chemicals for more than ten years. At present, some product grades have reached G4 and G5, and have been successfully supplied to many well-known semiconductor manufacturers in the downstream. Now, the wet electronic chemicals business of the company has entered a period of rapid development. At the end of 2021, Xingfu electronics successfully introduced a number of strategic investors with industrial, technological, capital and other resources such as the national large fund, which will effectively promote the development of Xingfu electronics into a leading enterprise of high-end electronic chemicals in the future.
Profit forecast and investment suggestions: it is estimated that the company will realize a net profit attributable to the parent company of 5.16/5.2/6.09 billion yuan from 2022 to 2024, with EPS of 4.6/5.0/5.5 yuan / share and corresponding P / E of 7.2/6.7/6.1 times respectively (corresponding to the closing price of 33.26 yuan on April 6). For the first time, give a "buy" rating.
Risk factors: chemical safety and environmental protection control are becoming stricter, and the commencement of the unit is limited; Risk that the construction progress of capacity under construction is less than expected; Risk of sharp fluctuations in raw material prices; Downstream demand of main products and export orders are less than expected risk.
