Xinyangfeng Agricultural Technology Co.Ltd(000902) Xinyangfeng Agricultural Technology Co.Ltd(000902)
Event:
On April 18, 2022, the company released the first quarterly report of 2022: the operating revenue of Q1 in 2022 was 4.544 billion yuan, a year-on-year increase of 37.25% and a month on month increase of 100.84%; The net profit attributable to the parent company was 407 million yuan, with a year-on-year increase of 24.14% and a month on month increase of 155.97%. The net cash flow from operating activities was 507 million yuan, an increase of 2250266% year-on-year and 80.43% month on month. The gross profit margin was 17.26% (down 2.91 percentage points year-on-year and up 3.12 percentage points month on month), and the net profit margin was 9.18% (down 1.35 percentage points year on year and up 1.99 percentage points month on month).
Key investment points:
The volume and price of main products rose simultaneously, and the performance of a single quarter reached a new high
In 2022, Q1 company achieved an operating revenue of 4.544 billion yuan, a year-on-year increase of 37.25% and a month on month increase of 100.84%; The net profit attributable to the parent company was 407 million yuan, with a year-on-year increase of 24.14% and a month on month increase of 155.97%. According to wind data, in Q1 2022, the price of chlorine based compound fertilizer was 296750 yuan / ton, with a year-on-year increase of 48.40% and a month on month increase of 0.99%; The price of sulfur based compound fertilizer was 327033 yuan / ton, with a year-on-year increase of 44.77% and a month on month increase of 3.34%; The price of monoammonium phosphate was 311317 yuan / ton, with a year-on-year increase of 37.69% and a slight decrease of 0.4%. At the same time, entering the peak season of spring farming, the demand for fertilizer increased, the volume and price of the company's main products increased, and the company's single quarter performance reached a new high.
In 2022, the net cash flow from Q1's operating activities was 507 million yuan, an increase of 2250266% year-on-year and 80.43% month on month. Entering the peak season of spring ploughing, dealers actively paid for and prepared goods, and the company's contract liabilities increased net; At the same time, the sales of compound fertilizer was blocked in the second half of last year, and the inventory of compound fertilizer sold smoothly in the first quarter, bringing cash income. In Q1 2022, the cash received by the company from selling goods and providing labor services was 4.356 billion yuan, an increase of 84.19% year-on-year and 53.06% month on month. As of March 31, 2022, the company's receivables financing was 355 million yuan, an increase of 606.56% compared with the beginning of the period.
In Q1 2022, the company's sales expense ratio was 2.43%, a year-on-year decrease of 0.95 percentage points; The rate of administrative expenses was 2.28%, a year-on-year decrease of 0.71 percentage points; The financial expense ratio was 0.13%, with a year-on-year increase of 0.52 percentage points, mainly due to the year-on-year increase in the interest of convertible corporate bonds in the current period. The R & D investment of the company increased by 1.49 billion yuan in 2022, a year-on-year increase of 5.42%.
New energy projects continued to be laid out and opened the second growth curve
As of March 31, 2022, the balance of construction in progress of the company was 970 million yuan, an increase of 71.04% compared with the beginning of the period. During the reporting period, the construction of various projects of the company progressed steadily. Zhongxiang phase I 50000 tons of iron phosphate has entered the single machine trial production, and the construction progress of iron phosphate project is in a leading position in the industry. On January 5, 2022, Yangfeng Chuyuan, a wholly-owned subsidiary of the company, signed the investment / service agreement for investment promotion projects with Yidu Municipal People's government to build an annual output of 100000 tons of iron phosphate and 50000 tons of lithium iron phosphate production line, supporting 100000 tons of refined phosphoric acid production line, with a total planned investment of 3 billion yuan. On January 10, 2022, the company and Gem Co.Ltd(002340) signed the strategic cooperation framework agreement on the integration of new energy materials industry chain of phosphorus resources and chemical industry. The agreement agreed that from 2022, the implementation subjects designated by both parties will work together to build iron phosphate materials and supporting projects with an annual output of no less than 150000 tons and lithium iron phosphate materials with an annual output of no less than 100000 tons. On the same day, Yangfeng Chuyuan and Gem Co.Ltd(002340) (Hubei) new energy materials Co., Ltd. signed the investment cooperation agreement between Yangfeng Chuyuan New Energy Technology Co., Ltd. and Gem Co.Ltd(002340) (Hubei) new energy materials Co., Ltd. on 150000 T / a iron phosphate project. The phase II 150000 t / a iron phosphate project of the company is jointly funded by Yangfeng Chuyuan and Gem Co.Ltd(002340) new energy and implemented by the joint venture. The capacity of 150000 tons of iron phosphate in phase II of the company is divided into several production lines. The first production line is expected to carry out trial production in August 2022 and start supplying to the lithium iron phosphate subsidiary of Gem Co.Ltd(002340) . Yidu 100000 ton iron phosphate project is expected to be put into trial production in August or September this year. The promotion of iron phosphate and lithium iron phosphate projects will help the company build the new energy industry into the second main industry after the main fertilizer industry, open the second growth curve, broaden the profit space in the future, and form a "two main and one auxiliary" industrial pattern from a single phosphorus and compound fertilizer industry to phosphorus and compound fertilizer, new energy and phosphogypsum building materials.
Build a comprehensive utilization project of phosphorus chemical industry and phosphorus ore associated fluorosilicone resources, and strengthen the integration of industrial chain
On April 8, 2022, the company announced the foreign investment and construction of phosphorus chemical industry and comprehensive utilization of phosphorus ore associated fluorosilicone resources by the wholly-owned subsidiary Yangfeng Chuyuan New Energy Technology Co., Ltd. Yangfeng Chuyuan plans to invest in the construction of phosphorus chemical industry and comprehensive utilization of phosphorus ore associated fluorosilicone resources in Ruichang City, Jiangxi Province. The total planned investment of the project is 6 billion yuan, including three sub projects. The phosphorus chemical project plans to have 1.5 million tons of beneficiation, 300000 tons of phosphoric acid 250000 tons of purified phosphoric acid, 900000 tons of sulfuric acid, 100000 tons of high-grade flame retardant, 100000 tons of potassium dihydrogen phosphate, 200000 tons of slag acid fertilizer and 1.5 million tons of phosphogypsum; The fluorosilicone chemical project is planned to have 30000 tons of anhydrous hydrogen fluoride and 20000 tons of white carbon black; 10000 tons of lithium hexafluorophosphate is proposed for the new energy materials project. The construction of the project can further extend the phosphorus chemical industry chain, strengthen the strategic layout and competitive advantage of the company's industrial chain integration, and help the company grasp the important development opportunities of lithium new energy industry, develop new products and markets, and enrich the industrial layout.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company in 2021, 2022 and 2023 will be RMB 1.581 billion, 2.034 billion and 2.676 billion respectively, and the corresponding PE will be 14.80, 11.51 and 8.75 times respectively, 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.
