\u3000\u3 Shengda Resources Co.Ltd(000603) 077 Sichuan Hebang Biotechnology Co.Ltd(603077) )
The quarterly results showed a substantial year-on-year pre profit, the main business continued a high boom, and maintained the “buy” rating
On April 11, the company released a performance forecast. It is estimated that the net profit attributable to the parent company in the first quarter will be RMB 1.01-1.1 billion, with a year-on-year increase of 302.72% – 338.60% and a month on month increase of 0% – 8.91%. The company’s main business, Lianhe alkali and glyphosate / glyphosate, continued the high boom, contributing to the high growth of quarterly performance. We maintain the company’s performance forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 4.063, 4.540 and 5.068 billion yuan, corresponding to EPS of 0.46, 0.51 and 0.57 yuan / share. The current stock price corresponds to PE of 7.7, 6.9 and 6.2 times from 2022 to 2024. As a leading salt and gas platform company with cost advantage, the company’s profitability is leading in the industry and maintains the “buy” rating.
The decline in raw material prices supported product profitability, and the company’s cost control ability continued to improve
According to the company’s announcement, the main reason for the significant year-on-year pre profit is that the main product ammonium chloride has reached a new high in recent years, and the prices of soda ash, glyphosate and glyphosate have increased significantly year-on-year; The market prices of the above products in March reached 1600, 2850 yuan / ton, 42000 yuan / ton and 72000 yuan / ton respectively, with a year-on-year increase of + 116% / 79% / 171% / 144% respectively. According to the data of Baichuan Yingfu, in the first quarter of 2022, the average prices of the above products were – 3.82% / – 20.07% / – 2.31% / – 6.48% month on month; The average prices of coal, yellow phosphorus and natural gas (Chengdu), the main raw materials of the company, were 163292 yuan / ton, 3302077 yuan / ton and 1.53 yuan / m3 respectively, with a month on month ratio of – 7.43% / – 15.05% / unchanged. The decline in the price of raw materials is conducive to supporting the profit space of products. In addition, the second phase of the company’s employee stock ownership plan was completed through non transaction transfer in January 2022. It is estimated that the cost to be recognized is about 104 million yuan, which is included in the profit and loss of the reporting period. We are still optimistic that the company will continue to improve its cost control ability and usher in a steady improvement in performance by virtue of salt and gas resources in Southwest China and its own technical advantages.
The construction of photovoltaic glass, monocrystalline silicon and phosphate rock development projects is orderly, and the company has broad development space
According to the company’s announcement, Chongqing 8GW photovoltaic packaging materials and products project has completed plant construction and most equipment installation, and is expected to be put into operation in June; The integrated plant and equipment foundation hardening of Fuxing technology 10gwn + ultra high efficiency single crystal Cecep Solar Energy Co.Ltd(000591) silicon wafer project has been completed and is planned to be put into operation in October; The company owns Mabian Yanfeng phosphate rock and Hanyuan Liujiashan phosphate rock, with a total of 90.91 million tons of phosphate rock resources. At present, the construction of Mabian Yanfeng phosphate rock with an annual output of 1 million tons of phosphate rock development project has been started, and it is planned to realize the sales of phosphate rock in April 2022. We believe that with the orderly promotion of a series of projects, the company’s upstream and downstream product chain will be further extended and the product pattern will be further enriched, which will create conditions for the company to obtain good profit space.
Risk tips: product prices fall, production capacity is less than expected, policy implementation is less than expected, etc.
