\u3000\u3 Shengda Resources Co.Ltd(000603) 505 China Kings Resources Group Co.Ltd(603505) )
Non net profit deducted in 2021 increased by 8.97% year-on-year, the performance met expectations and maintained the "buy" rating
The company released its 2021 annual report, and achieved a revenue of 1.043 billion yuan in 2021, with a year-on-year increase of 18.64%; The net profit attributable to the parent company was 245 million yuan, a year-on-year increase of 2.93%; The net profit deducted from non parent company was 245 million yuan, with a year-on-year increase of 8.97%. Among them, Q4 achieved a revenue of 399 million yuan, a year-on-year increase of 24.68%; The net profit attributable to the parent company was 75 million yuan, a year-on-year increase of 6.89%. The growth rate of the company's net profit is less than that of its revenue, which is due to the fact that the new project has not yet produced benefits, the large cost investment in the period related to the project, and the rise of production costs caused by factors such as the rise in the price of raw materials. The company's overall performance is in line with expectations. As it will take time for the company's new projects to mature and operate, we have lowered the company's profit forecast for 2022 and 2024. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 4.00 (original value of 4.27), 637 and 871 million yuan respectively, EPS will be 1.28 (original value of 1.37), 2.05 and 2.80 yuan / share respectively, and the current share price corresponding to PE will be 22.3, 14.0 and 10.2 times respectively. The company's development strategy is based on the long-term, Baotou Iron and steel Jinshi project is smoothly promoted, and will continue to extend to the downstream and open up new business growth points. We are optimistic about the long-term growth of the company under the grand vision and maintain the "buy" rating.
The production and sales of fluorite products of the company continued to grow, and the layout of various projects was promoted rapidly
In 2021, the company's production and sales of fluorite continued to grow, among which the sales of self-produced acid grade fluorite refined powder and high-grade fluorite ore were 303600 tons and 170100 tons respectively, with a year-on-year increase of 12.99% and 39.77% respectively. The increase in sales of high-grade fluorite minerals is mainly driven by the release of production capacity of the company's Lanxi Jinchang project. The company has initially formed the strategic positioning of "resources - fluorochemical industry - new energy" and the construction of relevant production capacity has been promoted rapidly. Among them, the progress of Baotou Steel Jinshi project has exceeded the expectation. The progress of reaching an annual output of 800000 tons of refined powder in five years will be greatly advanced, and it is expected to build a production capacity of 6 China High-Speed Railway Technology Co.Ltd(000008) 00000 tons / year by the end of 2022; The 120000 ton hydrofluoric acid production line of fluorochemical phase I is planned to be completed by the end of 2023; Jiangshan lithium battery materials phase I 6000 ton lithium hexafluorophosphate project strives to be put into trial production before the end of the year.
The important strategic position of fluorite attracts attention, and the heavy policy puts forward fluorite protection again
On April 7, six departments including the Ministry of industry and information technology issued the guiding opinions on promoting the high-quality development of petrochemical and chemical industry in the 14th five year plan, which emphasized the "protective mining of fluorite resources and encouraging the development and utilization of associated fluorine resources". The development of the company not only conforms to the industrial trend, but also conforms to the national policy guidelines, and firmly values the medium and long-term development potential of the company.
Risk tip: the progress of the project is less than expected, the product price has fallen sharply, and the downstream demand is less than expected.
