\u3000\u3 China Vanke Co.Ltd(000002) 001 Zhejiang Nhu Company Ltd(002001) )
Event: on April 14, 2022, Zhejiang Nhu Company Ltd(002001) released the annual report of 2021: the operating revenue was 14.798 billion yuan, up 43.47% year-on-year; The net profit attributable to the shareholders of the listed company was 4.324 billion yuan, a year-on-year increase of 21.34%; The weighted average return on net assets was 21.07%, an increase of 1.44 percentage points year-on-year. The gross profit margin of sales was 44.50%, a year-on-year decrease of 9.67 percentage points; The net profit margin of sales was 29.33%, a year-on-year decrease of 5.35 percentage points.
Among them, Q4 achieved a revenue of 4.281 billion yuan in 2021, a year-on-year increase of + 50.72% and a month on month increase of + 31.26%; The net profit attributable to the parent company was 958 million yuan, a year-on-year increase of + 52.50% and a month on month increase of + 0.05%; The weighted average return on net assets was 4.49%, with a year-on-year increase of 1.20 percentage points and a month on month decrease of 0.17 percentage points. The gross profit margin of sales was 38.84%, a year-on-year decrease of 4.07 percentage points and a month on month decrease of 4.81 percentage points; The net sales interest rate was 22.42%, an increase of 0.21 percentage points year-on-year and a decrease of 7.12 percentage points month on month.
Comments:
The contribution of capacity release is incremental, and the company's performance stands at a new height
In 2021, the company's performance stood at a new height in history, in which the revenue was 14.798 billion yuan, a year-on-year increase of 43.47%; The net profit attributable to the parent company was 4.324 billion yuan, a year-on-year increase of 21.34%. The company's performance achieved rapid growth, mainly benefiting from the good downstream demand for vitamin E, methionine and other products, as well as the gradual release of production capacity of the 100000 t / a methionine project and Heilongjiang biological fermentation project (phase I) put into operation at the end of 2020, driving the company's products to increase both volume and price. Among them, the company's pharmaceutical and chemical sectors, including nutrition, flavor and spice business, achieved sales of 560 thousand and 200 tons in 2021, an increase of 132.21% over the same period last year. In terms of business segments, nutrition products achieved a revenue of 11.128 billion yuan in 2021, a year-on-year increase of 55.59%, and the gross profit margin reached 47.04%, a year-on-year decrease of 10.74 percentage points; The essence and flavor business achieved a revenue of 2 billion 239 million yuan, an increase of 14.47% over the same period, and gross margin reached 42.13%, down 13.34 percentage points from the same period last year.
In Q4 of 2021, the company achieved a revenue of 4.281 billion yuan, a year-on-year increase of + 50.72% and a month on month increase of + 31.26%; The net profit attributable to the parent company was 958 million yuan, a year-on-year increase of + 52.50% and a month on month increase of + 0.05%; The gross profit margin of sales was 38.84%, with a year-on-year decrease of 4.07 percentage points and a month on month decrease of 4.81 percentage points, which was mainly affected by the rising cost and the decline of the company's profitability.
In terms of period expenses, the company's sales / management / financial expense ratio in 2021 was 0.72% / 8.15% / 1.82% respectively, with a year-on-year increase of -2.31 / - 1.24 / - 1.13pct. The period expenses were well controlled and the sales expense ratio fell sharply, mainly due to the change of accounting standards. In 2021, the net cash flow from the company's operating activities reached 5.838 billion yuan, an increase of 86.94% year-on-year, mainly due to the increase in sales revenue and the corresponding increase in the return of loans during the reporting period.
Vitamin E is booming and the nutrition business continues to expand
After years of layout and development, the company's nutrition business has been in a leading position in China and well-known abroad. It has become one of the four major vitamin manufacturers in the world. Its products cover vitamin E, vitamin A, vitamin C, methionine, vitamin D3, biotin, coenzyme Q10, astaxanthin, etc. Among them, the production capacity of vitamin A is 8000 tons / year (500000 IU), the production capacity of vitamin E is 60000 tons / year (50% powder), and the production capacity of methionine is 150000 tons / year. The company has steadily expanded the production capacity of nutrition products, and the remaining 150000 T / a production capacity of methionine phase II is under active construction. At the same time, the company will also cooperate with Sinopec to invest 3 billion yuan to build a new methionine production facility, with increasing scale advantages. Affected by the sluggish operation of some manufacturers in the industry and the rise of raw material prices, the price of vitamin E has continued to rise since 2021. In 2021, the average market price of vitamin E reached 80.44 yuan / kg, an increase of 24.0% year-on-year. As a leading vitamin enterprise, the company will fully benefit from the high prosperity of vitamin E.
Make special and refined API, and the company's performance will usher in new highlights
While expanding and strengthening nutritional products, the company makes use of the existing industrial supporting advantages, integrates the company's resources, and increases the research and application of new products, new technologies and new equipment in the field of API. At present, the main products are concentrated in the series of vitamins and antibiotics, and the main products include moxifloxacin salt, etc. At the same time, in the field of API, the company actively carries out research and development of new projects, including the joint production project of Kalon anhydride and azabicyclic acid. At present, the 500 t / a Kalon anhydride and 500 t / a azabicyclic acid project have entered the construction stage and are expected to be completed and put into operation in the second quarter. As the key intermediates of covid-19 specific drug, caronic anhydride and azabicyclic will enhance the competitiveness of the company in the API sector and bring new highlights to the company's performance with the launch of production capacity.
To make deep essence and flavor, competitiveness is constantly increasing.
Relying on the two technical platforms of chemical synthesis and biological fermentation, the company has continuously launched integrated, serialized and collaborative new flavor varieties to realize the functionalization and differentiation of products and meet the changing market demand. At present, the company's main products include linalool series, citral series, leaf alcohol series, methyl dihydrojasmonate, raspberry ketone, privet aldehyde, etc., which are widely used in personal care, cosmetics and food fields. At the same time, the company's 5000 t / a menthol project is also in the construction stage. With the gradual diversification, scale and differentiation of flavors and fragrances in the company, competitiveness in the industry has also continued to grow.
Accelerate the layout of new materials and actively explore downstream applications
In recent years, the company has accelerated the layout in the field of new materials, focused on the development of large polymer products and key intermediates, moderately developed downstream applications of materials according to the principle of integration and serialization, created a PPS whole industrial chain from basic raw materials to polymer, then to modified processing and special fibers, and become the only enterprise in China that can stably produce fiber grade, injection molding grade, extrusion grade and coating grade PPS. At present, the company's polyphenylene sulfide (PPS) production capacity has reached 15000 tons / year, with an annual output of 7000 tons / year, and the third phase of PPS project is also actively under construction; The production capacity of high temperature nylon (PPA) is planned to be 10000 tons / year. At present, the pilot line can output more than 1000 tons, and the subsequent expansion will be promoted in an orderly manner. Meanwhile, the company actively develops downstream application development. On March 9, 2022, the company signed a cooperation framework agreement with China Petroleum Engineering Materials Research Institute to jointly develop a series of products such as PPS Composite Pipes for oil and gas fields, so as to fill the gap in the application of PPS oil and gas fields in China. At the same time, the company also broadened downstream applications, occupied the high-end market and enhanced market competitiveness and industry position.
Adhere to high investment in R & D and technological innovation to drive the company's high-quality development
The company adheres to the R & D concept of "demand-oriented, internal and external cooperation", and the R & D investment accounts for more than 5% of the operating revenue for many consecutive years. In 2021, the company's R & D expenses reached 783 million yuan, a year-on-year increase of 43.46%, accounting for 5.29% of revenue. As the core of enterprise technological innovation, the Research Institute of the company has set up laboratories such as biomedical laboratory, supercritical reaction laboratory and engineering equipment research center, equipped with 600m nuclear magnetic resonance instrument with ultra-low temperature probe and other world advanced scientific research instruments and equipment, mastered China's leading technologies such as supercritical reaction, high vacuum distillation and continuous reaction, and was rated as national recognized enterprise technology center, National Post Doctoral scientific research workstation National Model academician expert workstation. During the reporting period, the company's key research and development projects were steadily promoted according to the planned nodes, and the project of "key technological innovation and industrialization of micro nano structure regulation of supported catalyst" won the first prize of technological invention in Zhejiang Province in 2020; Intellectual property work continued to advance, with 88 authorized patents, and completed the whole process patent layout of key products. At the same time, the company has actively promoted a number of R & D projects, including the development of synthetic process of NH acid products, the development of liquid methionine products, the preparation of adiponitrile by butadiene method and its industrialization, strain development and transformation research. With the continuous implementation of the project, the company's product industry chain will be further enriched, the process advantages of existing products will be continuously improved, and the company's core competitiveness will be continuously enhanced.
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 5.333, 6.142 and 7.031 billion yuan respectively, and the EPS will be 207, 2.38 and 2.73 yuan / share, corresponding to 15, 13 and 11 times of PE, maintaining the "buy" rating.
Risk tips: the implementation of policies, the construction progress of new production capacity is not up to expectations, the contribution performance of new production capacity is not up to expectations, the price of raw materials fluctuates, the change of environmental protection policies, the economy drops sharply, and the price of crude oil fluctuates sharply.
