\u3000\u3 China Vanke Co.Ltd(000002) 001 Zhejiang Nhu Company Ltd(002001) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 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 revenue has achieved high growth and the prosperity of vitamin E has continued. In 2021, the company achieved revenue of 14.798 billion yuan, a year-on-year increase of 43.47%, and Q4 revenue of 4.282 billion yuan, a record high; In 2021, the revenue increment contributed by nutrition business reached 3.976 billion yuan. In 2021, the average market price of vitamin E was 80.44 yuan / kg, 24.13% higher than that in 2020. The production and sales volume of pharmaceutical and chemical products were 581000 tons and 560200 tons respectively, an increase of 127.43% and 132.21% over 2020, mainly due to the increase of downstream demand for vitamin E, methionine and other products and the increase of output of amino acid products. Operating costs grew rapidly, and the growth rate of gross profit was lower than that of revenue. In 2021, the company realized gross profit of 6 billion 586 million yuan, an increase of 17.88% over the same period, and the operating cost of nutriment / flavors and fragrances / new materials / other main businesses rose by 96.32%/48.62%/32.85%/10.24% compared to the same period last year, and the gross profit growth rate was not as fast as that of the revenue growth.
During this period, the overall cost rate decreased, R & D investment increased significantly, and R & D projects were abundant. In 2021, the company's sales expense ratio / management expense ratio / financial expense ratio decreased by 2.31/1.24/1.13 PCTs year-on-year respectively, and the R & D expense was 783 million yuan, with a year-on-year increase of 43.41%. The R & D expense ratio was 5.29%, which was the same as that in 2020. The R & D expense rate of the company remains above 5%. The joint production project of carbonic anhydride and azabicyclic acid (covid-19 oral medicine), liquid methionine project (new field) and adiponitrile project (domestic substitution) deserve attention.
The profit growth was good, and the gross profit margin and net profit margin fluctuated. In 2021, the company realized a net profit attributable to the parent company of 4.324 billion yuan, a year-on-year increase of 21.32%, and a year-on-year increase of 53.04% in Q4. Affected by the substantial increase in revenue costs, the company's gross profit margin and net profit margin fluctuated in 2021. The gross profit margin and net profit margin in 2021 were 44.50% and 29.33% respectively, with a year-on-year decrease of 9.66 and 5.35 PCTs respectively. The methionine raised investment project will be put into operation in 2023, and the joint venture with Sinopec may have a positive impact. Several projects under construction of the company are close to or have been completed, and the 150000 ton methionine plant that has been put into operation operates well. In 2021, the company taurine project was launched and the vitamin B6 project has been put into operation in the first phase of the biological fermentation project. The framework of the fragrance and fragrance base has basically been completed. The 5000 tons of menthol is expected to be put into operation in the second half of the year. The PPS three phase 7000 tons project is being expanded and is expected to be completed in 2022. The company has signed a letter of intent for joint venture cooperation with Sinopec to jointly invest in a set of methionine production facilities. The total investment of the project is expected to be about 3 billion yuan. If it is officially implemented, it is expected to have a positive impact on the company's profits in the future.
Profit forecast and Valuation: relying on the deep foundation of fine chemicals and focusing on "chemical +" biological + ", the company has formed a deep product network structure and is expected to continue to grow rapidly. The progress of methionine project was delayed due to the epidemic. The net profit of the company in 2022 and 2023 was adjusted from 5.863 and 7.379 billion yuan to 5.190 and 5.932 billion yuan. The net profit in 2024 is expected to be 6.882 billion yuan. It is estimated that the company's EPS from 2022 to 2024 will be 2.01/2.30/2.67 yuan respectively, and the current price corresponding to PE will be 15.35/13.43/11.58 times respectively. Maintain the "buy" rating.
Risk tips: Industry and market competition risks; Price fluctuation risk of raw materials; Exchange rate and trade risks; Risk of changes in environmental protection policies; The construction progress of the project is less than expected
