\u3000\u3 China Vanke Co.Ltd(000002) 312 Sichuan Development Lomon Co.Ltd(002312) )
Event description
On April 13, the company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 6.645 billion yuan, a year-on-year increase of 28.28%; The net profit attributable to shareholders of listed companies was 1.016 billion yuan, up 51.94% year-on-year; The net profit excluding non recurring profit and loss was 673 million yuan, a year-on-year increase of 103.10%. During the reporting period, the company adhered to the development mode of “scarce resources + technological innovation + industrial chain integration”, and its main products were industrial grade monoammonium phosphate, feed grade calcium hydrogen phosphate and fertilizer grade monoammonium phosphate. At the same time, the company actively deployed the field of new energy materials in combination with its own industrial advantages and resource endowment.
The prosperity of the chemical fertilizer industry has improved, and the volume and price of main products have increased at the same time
In 2021, the company achieved an operating revenue of 6.645 billion yuan, a year-on-year increase of 28.28%; The net profit attributable to the parent company was 1.016 billion yuan, a year-on-year increase of 51.94%. Among them, the revenue of fertilizer series products was 3.472 billion yuan, accounting for 52.25%, and the revenue of industrial grade monoammonium phosphate was 1.071 billion yuan, accounting for 16.12%. Due to the continuation of the global epidemic, countries around the world pay more attention to food security. Many countries have successively issued industrial policies to encourage food planting. The global demand for chemical fertilizer is growing, and the prosperity of the chemical fertilizer industry is improving. On the supply side, due to the limited start-up of overseas mainstream phosphate fertilizer producing areas, the supply of chemical fertilizer market is insufficient, and the market supply and demand maintain a tight balance. As of April this year, the price of fertilizer grade monoammonium phosphate was 3540 yuan / ton, up 49.43% year-on-year; The price of feed grade dicalcium phosphate was 3686 yuan / ton, up 109.54% year-on-year; The price of compound fertilizer was 3480 yuan / ton, up 47.64% year-on-year. Meanwhile, affected by the vigorous development of new energy battery industry, the demand for industrial grade monoammonium phosphate shows a rapid growth trend. At present, the average market price is 7125 yuan / ton, up 28.28% year-on-year. The capacity utilization rate of the company’s fertilizer series products exceeded 110%, the volume and price of main products rose simultaneously, and the annual operating revenue and performance increased significantly.
The acquisition plan of phosphate rock has been finalized to accelerate the integration process of mineralization
The company’s phosphate rock acquisition plan was implemented, and it was determined that the transaction consideration of 100% equity of Tianrui mining was 956 million yuan, and the share issuance price of issuing shares to purchase assets was 7.67 yuan / share. At present, the company’s phosphate rock acquisition project is advancing in an orderly manner, and announced on March 7 that it has received the administrative license application acceptance form from the CSRC. Tianrui mining owns the right of Mabian phosphate rock in Sichuan Province, with a phosphate rock resource reserve of 95.975 million tons, a mining scale of 2.5 million tons / year, and a beneficiation device of 2 million tons / year.
Deyang and Xiangyang bases of the company are rich in phosphate rock resource allocation. After the acquisition, the company’s phosphate rock raw material resource reserves will increase significantly. After Tianrui mining reaches the production capacity, it will increase the phosphate rock production capacity by 2.5 million tons every year, most of which will meet the phosphate rock demand of Mianzhu base. At that time, the company will have an annual production capacity of 3.65 million tons of phosphate rock. The company’s acquisition of upstream phosphate rock resources is expected to accelerate the layout of mineralization integrated industrial chain, help to improve the control and guarantee ability of upstream phosphate rock resources in the company’s main production base, reduce the dependence on purchased phosphate rock and reduce the adverse impact of phosphate rock price fluctuation on the company’s profitability, give full play to the Industrial Synergy and improve the company’s overall profitability.
Layout the lithium battery material track and open the second growth curve
The company adheres to the development mode of “scarce resources + technological innovation + industrial chain integration” and actively arranges the field of new energy materials. Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy materials project of the company is listed as a key promotion project in Sichuan Province. At present, it has been officially started, and some project land and environmental assessment replies have been obtained. Safety assessment, job assessment and stability assessment have been filed, and energy assessment approval, construction permit approval and other work are being orderly promoted; At the same time, the company has steadily promoted lithium new energy material projects in Panzhihua, Hubei and other places. The company plans to invest 12 billion yuan to build Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project in de’a Industrial Park, including 200000 tons of iron phosphate, lithium iron phosphate and supporting projects. The company deeply cultivates the “sulfur phosphorus titanium iron lithium calcium” multi resource green and low-carbon industrial chain. As a leading enterprise of industrial grade monoammonium phosphate in China, the company extends the industrial chain to the downstream and cuts into the field of lithium iron phosphate cathode materials, so as to further give full play to the integrated advantages of the industrial chain of “phosphate rock industrial grade monoammonium phosphate iron phosphate lithium iron phosphate”, reduce costs and increase efficiency, improve product added value, and vigorously develop lithium iron phosphate new energy material projects, Grasp the industry development opportunities brought by the development of green and low-carbon advantageous industries.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 20224 will be 922 million yuan, 986 million yuan and 1045 million yuan respectively, with a year-on-year growth rate of – 9.2%, 7.0% and 6.0%. The corresponding PE is 22, 20 and 19 times respectively. Maintain the “buy” rating.
Risk tips
(1) various risks caused by price fluctuations of raw materials and main products;
(2) safety production risk;
(3) environmental protection risks;
(4) the production progress of the project is less than expected;
(5) equity incentive is less than expected.
