\u3000\u3 China Vanke Co.Ltd(000002) 001 Zhejiang Nhu Company Ltd(002001) )
Zhejiang Nhu Company Ltd(002001) released the annual report of 2021: the annual operating revenue was 14.798 billion yuan, yoy + 43.47%, and the net profit attributable to the parent company was 4.324 billion yuan, yoy + 21.34%.
The increase in sales of major products contributed to the growth of performance, and the pressure on gross profit margin fell, dragging down the growth of net profit. In 2021, the sales volume of pharmaceutical and chemical products increased by 132% year-on-year, driving the growth of nutrition business revenue to 55.59% yuan to 11 billion 128 million yuan, and the essence and flavor business revenue increased 14.47% to 2 billion 239 million yuan. Affected by the rising cost of raw materials and the low methionine discharge rate, the company’s gross profit margin dropped 9.67 percentage points to 44.50%, of which the gross profit margin of nutrition products dropped 10.74 percentage points to 47.04%, and the gross price of essence and spices dropped 13.34 percentage points to 42.13%. In the future, the company plans to reduce the adverse impact of raw material price fluctuations by strengthening market research and judgment, establishing strategic cooperative relations with suppliers and improving the utilization rate of raw materials. We expect that the company’s gross profit margin will be improved in the future if it is successfully promoted.
Zhejiang Nhu Company Ltd(002001) is a high-quality fine chemical synthesis leader in China. The integration of industrial chain and product serialization promote the company to gradually grow into a fine chemical leader. The company started from the pharmaceutical intermediates, and successfully expanded its business to vitamins, essence and flavor, new materials, methionine and other fields. At present, the company is one of the four largest vitamin producers in the world, and has developed into an influential essence and fragrance enterprise, a competitive methionine production enterprise and a promising new material enterprise. The company has a deep understanding of fine chemical synthesis. The driving force of sustainable growth lies in the integration of industrial chain and product serialization. ① Industrial chain integration: the company’s vitamin business strengthens the supply of intermediates and continuously improves the process flow to realize the integrated production of vitamin products from intermediates to finished products. The company has overcome the new method of synthesizing ve intermediates and optimized the process, effectively reducing the production cost of VE. Product serialization: the company has expanded from vitamin business to essence, spices, raw materials, food additives, and biological fermented products, and has realized the serial supply of downstream feed, medicine and food customers. The new products of NH acid, caranhydride anhydride and aza heterocyclic ring have entered the industrialization stage. In 2021, the main business areas of the company achieved growth. The production of some projects under construction further enriched the company’s product structure, and the company’s integrated and serialized product planning made positive progress.
The continuous construction and orderly release of new production capacity will help further enrich the company’s product system. The company has many projects under construction and continues to develop various functional chemicals on the two core platforms of chemical industry and biology. ① Nutrition sector: the remaining 150000 tons of production capacity of the company’s 250000 tons of methionine project in phase II is under construction. At the same time, the company plans to cooperate with Sinopec Zhenhai Refining and Chemical Co., Ltd. to invest 3 billion yuan to build a methionine production facility. We believe that if the project continues to advance, the company is expected to become the first tier methionine production enterprise in the world. 2. Essence and flavor sector: the annual output of 5000 tons of menthol is being built according to schedule. ③ Polymer new materials: the phase III project of PPS with an annual output of 7000 tons has been put into construction. We expect that the successive construction and launch of these projects under construction will help further enrich the company’s product system.
Profit forecast and investment rating of the company: the company has gradually grown from a leader in vitamins to a leader in fine chemicals, and the construction of new projects has enriched the product system. Based on the company’s 2021 annual report, we adjusted the company’s profit forecast from 2022 to 2024 accordingly. We predict that the net profit of the company from 2022 to 2024 will be 5.182 billion yuan, 5.779 billion yuan and 6.548 billion yuan respectively, and the corresponding EPS will be 2.01, 2.24 and 2.54 yuan respectively. The corresponding P / E value of the current stock price will be 15, 14 and 12 times respectively. Maintain a “strongly recommended” rating.
Risk warning: intensified competition in technical routes; The launch progress of new capacity is less than expected; Downstream demand was lower than expected.
