\u3000\u3 Shengda Resources Co.Ltd(000603) 181 Zhejiang Huangma Technology Co.Ltd(603181) )
The performance is in line with expectations. The company released its annual performance in 2021, realizing an operating revenue of 2.336 billion yuan, an increase of 20.06% over the same period of last year; The net profit attributable to the shareholders of the listed company was 448 million yuan, an increase of 40.01% over the previous year. The net profit attributable to the shareholders of the listed company after deducting the non recurring profit and loss was 293 million yuan, an increase of 24.80% over the previous year. The non recurring profit and loss items are mainly the profit and loss from the disposal of non current assets, which reached 130 million yuan. The company plans to distribute cash dividends of 1 million yuan (including tax) to all shareholders for every 10 shares.
Key points supporting rating
The fourth quarter performance fell month on month. In a single quarter, the company achieved an operating revenue of 564 million yuan in a single quarter in the fourth quarter, down 9.8% month on month; The net profit attributable to the parent company was 83 million yuan, down 47.8% month on month. Zhejiang lvkean Chemical Co., Ltd. and Zhejiang Real Madrid Shangyi new materials Co., Ltd., wholly-owned subsidiaries of the company, began to gradually reduce and orderly temporarily stop production from the afternoon of December 9, 2021, and began to resume work and production in an all-round and orderly manner on December 24, 2021. During the epidemic period, the company actively adjusted the production and operation plan and appropriately adjusted the delivery period, and the undertaking of new orders was not significantly affected.
The volume and price of the “small variety” sector rose simultaneously. In terms of products, the company’s “small variety” segment achieved a revenue of 1.75 billion yuan in 2021, a year-on-year increase of 42.9%; The sales volume was 110000 tons, with a year-on-year increase of 18.5%; The average sales price was 15920 yuan / ton, with a year-on-year increase of 20.6%; The gross profit margin was 25.0%, a year-on-year decrease of 0.2pcts. The company’s “big variety” segment achieved a revenue of 580 million yuan in 2021, a year-on-year decrease of 18.1%; The sales volume was 72000 tons, a year-on-year decrease of 20.5%; The average sales price was 8043 yuan / ton, a year-on-year increase of 3.1%; The gross profit margin was 9.1%, a year-on-year decrease of 6.9pcts. During the reporting period, the price of raw materials rose sharply, and the transportation expenses included in the operating cost had an impact on the gross profit margin of the main business. The technical barrier of small varieties of special surfactants is high, and the key technologies still rely on the introduction. The company has tackled key problems in the field of non-ionic special surfactants for many years. During the reporting period, it continued to focus on the “small varieties” sector, and the volume and price of main products Rose simultaneously.
The capacity utilization rate of the new plant has increased steadily, and the “small variety” sector is expected to continue to increase in volume. The annual capacity utilization rate of the company’s lvkean plant area (182000 tons / year) is 63.5%; The annual capacity utilization rate of Real Madrid Shangyi new material plant (100000 tons / year) is 35.7%. The phase I 100000 ton project of Real Madrid Shangyi new material plant was put into operation in the third quarter of 2021, and the phase II 30000 ton high-end surface function new material project is expected to be put into operation in the third quarter of 2022. The framework agreement for the settlement of the third plant project was successfully signed. With the steady improvement of capacity utilization in the company’s new plant, new material projects such as polyether amine and MS resin continue to make breakthroughs, and the performance is expected to maintain high growth.
Valuation
The domestic substitution of non-ionic special surfactants continues to advance, and the production capacity of the company’s new plant is climbing steadily. It is estimated that the earnings per share from 2022 to 2024 will be 0.85 yuan, 0.96 yuan and 1.12 yuan respectively, and the corresponding PE will be 16.8 times, 14.9 times and 12.8 times respectively. Maintain buy rating.
Main risks of rating
The epidemic affects the start-up and demand recovery; The project is not put into operation as expected; The product price fluctuates greatly.
