\u3000\u3 China Vanke Co.Ltd(000002) 895 Guizhou Chanhen Chemical Corporation(002895) )
Event: on April 15, 2022, Guizhou Chanhen Chemical Corporation(002895) released the annual report of 2021: the operating revenue was 2.531 billion yuan, with a year-on-year increase of 42.36%; The net profit attributable to the shareholders of the listed company was 368 million yuan, a year-on-year increase of 157.88%; The weighted average return on net assets was 11.48%, with a year-on-year increase of 5.06 percentage points. The gross profit margin of sales was 28.37%, with a year-on-year increase of 3.76 percentage points; The net profit margin of sales was 15.20%, with a year-on-year increase of 7.14 percentage points.
Among them, Q4 achieved a revenue of 859 million yuan in 2021, an increase of 73.36% year-on-year and 29.03% month on month; The net profit attributable to the parent company was 156 million yuan, an increase of 283848811% year-on-year and 45.43% month on month; The weighted average return on net assets was 4.49%, an increase of 4.49 percentage points year-on-year and 1.16 percentage points month on month. The gross profit margin of sales was 22.30%, with a year-on-year increase of 3.37 percentage points and a month on month decrease of 16.28 percentage points; The net profit margin of sales was 18.70%, with a year-on-year increase of 18.74 percentage points and a month on month decrease of 1.40 percentage points.
Meanwhile, the company released the first quarter report of 2022: the operating revenue was 609 million yuan, an increase of 57.12% year-on-year and a decrease of 29.15% month on month; The net profit attributable to the parent company was 104 million yuan, an increase of 205.13% year-on-year and a decrease of 33.23% month on month; The weighted average return on net assets was 2.88%, with a year-on-year increase of 1.73 percentage points and a month on month decrease of 1.61 percentage points. The gross profit margin of sales was 35.28%, with a year-on-year increase of 9.32 percentage points and a month on month increase of 12.98 percentage points; The net profit margin of sales was 17.48%, with a year-on-year increase of 8.27 percentage points and a month on month decrease of 1.22 percentage points.
Comments:
The prosperity of main products increased, and the revenue and profit reached a record high
In 2021, the company realized an operating revenue of 2.531 billion yuan, a year-on-year increase of 42.36%; The net profit attributable to the parent company was 368 million yuan, a year-on-year increase of 157.88%. The company’s revenue and profit increased significantly year-on-year. On the one hand, it is due to the sharp rise in the price of phosphorus chemical products. In 2021, the company’s operating revenue of phosphorus chemical industry was 1.821 billion yuan, a year-on-year increase of 31.99%; The gross profit margin was 27.06%, a year-on-year decrease of 2.32%. The company implemented Q & a related answers according to the accounting standards for business enterprises and included the transportation expenses related to the contract into the operating cost, resulting in a year-on-year increase of 36.32% in the operating cost of phosphorus chemical industry. On the other hand, it is due to the company’s new asset phosphate rock sales business. In 2021, the company completed the acquisition of mining rights and related assets of Xinqiao phosphorus mine and jigongling phosphorus mine. While ensuring the sufficient supply of phosphorus ore for production, the company sold 1047200 tons of phosphorus ore. The operating revenue of phosphorus ore mining was 309 million yuan and the gross profit margin was 61.99%.
Steady progress was made in project construction to accelerate the transformation of new energy
Since September 2021, the company has successively signed the framework agreement and cooperation agreement with GuoXuan holdings. The two sides will cooperate in the field of phosphorus battery materials and fluorine battery materials, jointly establish a joint venture, and plan to build a production capacity of no less than 500000 tons / year of iron phosphate; Signed the investment project cooperation agreement with the people’s Government of Fuquan City, Guizhou Province, and invested in the construction of “mineralization in one” new energy material recycling industry project in Fuquan City in two phases; Together with Lanjian investment and Chen Yong, we will increase the capital of Wanpeng company and plan to invest in the construction of lithium iron phosphate cathode material project with an annual output of 100000 tons; Signed the investment cooperation agreement with Sunwoda Electronic Co.Ltd(300207) to build two phases of Weng’an county “mineralization integration” new energy material recycling industry project. The 1.5 million T / a medium and low-grade phosphate rock comprehensive utilization beneficiation device and supporting facilities and 300000 t / a pyrite sulfuric acid project in Fuquan new mineralized integrated phosphorus resources intensive processing project, the main raised and invested project of the company’s convertible bond issuance, have been invested and constructed. It is expected to be completed and put into operation in the first half of 2022. On the one hand, the project can ensure the supply of raw material phosphorus concentrate of Guangxi Pengyue project, On the other hand, it can provide sulfuric acid for the production of Fuquan plant, which is conducive to reducing the impact of purchased sulfuric acid on product cost. Meanwhile, the company’s non-public offering shares are mainly invested in the “200000 t / a half water dihydrate wet process phosphoric acid and precision and deep processing project” invested and constructed by Guangxi Pengyue. Some construction contents are expected to be gradually put into operation in the second half of 2022, and the overall construction of the project is expected to be completed by the end of December 2022. Hengxuan new energy, a new holding subsidiary of the joint venture between the company and GuoXuan group, has been established, and the iron phosphate project for battery is under normal construction. Hengda mining and its subsidiary Hengchang new energy, a new holding subsidiary of Sunwoda Electronic Co.Ltd(300207) joint venture, have been established, and the iron phosphate project to be invested and constructed by Hengchang new energy is under preparation. The implementation of these projects will continuously enrich the company’s phosphorus chemical product structure and help the company’s layout of the whole industrial chain of “phosphorus fluorine lithium new energy materials”.
It is proposed to raise no more than 3.53 billion yuan to build purified phosphoric acid and mining projects
The company plans to raise no more than 3.53 billion yuan through non-public offering of a shares, and invest in the construction of 120000 T / a food grade purified phosphoric acid project for the comprehensive utilization of low-grade phosphate rock, 100000 t / a food grade purified phosphoric acid project, and the new 2.5 million T / a mining project of jigongling phosphate rock. Among them, “120000 T / a food grade purified phosphoric acid project produced by comprehensive utilization of medium and low-grade phosphate rock” is one of the important components of “mineralization integrated new energy material recycling industry project”, and “100000 t / a food grade purified phosphoric acid project” is one of the supporting projects of the company’s “100000 t / a battery iron phosphate project”. The purified phosphoric acid produced will give priority to ensuring the supply of raw materials for the company’s iron phosphate production line, The successful implementation of the project will provide sufficient phosphorus source for the subsequent iron phosphate production line and ensure the smooth operation of the company’s subsequent iron phosphate production line. The implementation of the 2.5 million T / a mining project will expand the mining capacity of the company’s phosphate rock, ensure the supply of the company’s important raw material phosphate rock, and provide a solid foundation for the stable and sustainable development of the company’s phosphate chemical industry.
Complete the acquisition of mining rights of Xinqiao phosphorus mine and jigongling phosphorus mine to ensure sufficient supply of phosphorus ore for production
In 2021, Fulin mining, the holding subsidiary of the company, has completed the acquisition of mining rights and related assets of Xinqiao phosphorus mine and jigongling phosphorus mine. Fulin mining has held three mining rights: Xiaoba phosphorus mine mining right, Xinqiao phosphorus mine mining right and jigongling phosphorus mine mining right. During the reporting period, Fulin mining, the holding subsidiary of the company, realized a total mining volume of 2.46 million tons of phosphorus ore, except mainly for the use of the company to ensure the normal production of the company, About 1.05 million tons of phosphate rock are exported. Fulin mining entrusted Guizhou coal mine geological engineering consulting and geological environment monitoring center to verify and explore the resources and reserves of Xiaoba phosphorus mine. It is proved that as of May 31, 2021, the average grade of the deposit is 25.94%. The total amount of phosphorus ore resources identified in the mining area is 477353 million tons, including 168831 million tons of mining consumption, 308522 million tons of retained resources, 142531 million tons of proved resources and 8.022 million tons of controlled resources, The inferred resource is 8.5729 million tons. The inferred resource of associated element iodine is 147222 tons, and the inferred resource of associated element fluorine is 635600 tons.
The company plans to build a new 2.5 million T / a mining project in jigongling phosphate mine, with a total investment of 1.056 billion yuan and a construction period of 4 years. The completion of the project will improve the self-sufficiency rate of phosphorus ore, effectively reduce the adverse impact of phosphorus ore market price fluctuation on the company and improve the profitability of the company.
The prosperity of main products continued, and the company’s performance in the first quarter increased significantly year-on-year
In the first quarter of 2022, the company realized an operating revenue of 609 million yuan, a year-on-year increase of 57.12%; The net profit attributable to the parent company was 104 million yuan, with a year-on-year increase of 205.13%. The substantial growth of the company’s revenue and profit is mainly due to the year-on-year rise in the prices of the company’s main products such as monoammonium phosphate and calcium dihydrogen phosphate, as well as the sales of the company’s self-produced phosphorus ore. According to wind data, in the first quarter of 2021, the average price of phosphate rock was 620 yuan / ton, up 61.14% year-on-year; The average price of industrial grade monoammonium phosphate was 6212 yuan / ton, a year-on-year increase of 50.63%; According to Zhuo Chuang data, as of April 12, the ex factory price of CHUANHENG feed grade calcium dihydrogen phosphate was 5600 yuan / ton, a year-on-year increase of 100%. The company’s sales expense ratio in the first quarter of 2022 was 1.73%, a year-on-year decrease of 5.57 percentage points, which was mainly due to the decrease in the sales expense ratio due to the implementation of Q & a related answers by the company in accordance with the accounting standards for business enterprises and the inclusion of contract related transportation expenses in operating costs; The management expense ratio was 8.58%, with a year-on-year increase of 0.92 percentage points, which was caused by the year-on-year increase of employee salary and equity incentive expenses; The financial expense ratio was 4.12%, with a year-on-year increase of 4.04 percentage points, mainly due to the year-on-year increase in the interest of loans and convertible bonds, and the receipt of loan discount interest in the same period of last year offset part of the loan interest, so the interest expense was less.
Based on the principle of prudence, the impact of private placement on the company’s performance is not considered for the time being. It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 638, 903 and 1554 million yuan respectively, EPS will be 131, 185 and 3.18 yuan / share, and the corresponding PE will be 18.57, 13.11 and 7.62 times, maintaining the “buy” rating.
Risk warning: macroeconomic fluctuation risk; The production capacity is lower than expected; Risk of price fluctuation of raw materials; Future demand decline; The progress of the new project is less than expected; Non public offering process uncertainty risk.
