\u3000\u3 China Vanke Co.Ltd(000002) 637 Zanyu Technology Group Co.Ltd(002637) )
Oil and chemical surface activity continues to expand, and OEM will bring new space for growth
Event: on April 19, 2022, Zanyu Technology Group Co.Ltd(002637) released the annual report for 2021: the operating revenue was RMB 11.201 billion, up 43.54% year-on-year; The net profit attributable to the shareholders of the listed company was 796 million yuan, a year-on-year increase of 130.92%; The weighted average return on net assets was 21.88%, an increase of 9.56 percentage points year-on-year. The gross profit margin of sales was 14.80%, a year-on-year decrease of 1.02 percentage points; The net profit margin of sales was 7.18%, with a year-on-year increase of 2.59 percentage points.
Among them, Q4 achieved a revenue of 3.182 billion yuan in 2021, a year-on-year increase of + 18.92% and a month on month increase of + 5.53%; The net profit attributable to the parent company was 192 million yuan, with a year-on-year increase of + 100741% and a month on month increase of + 16.21%; The weighted average return on net assets was 4.87%, an increase of 5.60 percentage points year-on-year and 0.48 percentage points month on month. The gross profit margin of sales was 7.34%, a year-on-year decrease of 8.97 percentage points and a month on month decrease of 7.73 percentage points; The net profit margin of sales was 5.39%, with a year-on-year increase of 5.67 percentage points and a month on month decrease of 0.40 percentage points.
Comments:
The prices of main products rose sharply, and the company’s performance ushered in a significant improvement
Affected by the loose global monetary policy and inflation expectations, coupled with repeated epidemics, blocked international shipping, impact on the global supply chain, China’s safety and environmental protection policy and dual control policy, the prices of palm oil and other raw materials and products continued to rise sharply, which also led to the improvement of the company’s main business profitability. Among them, in 2021, the company achieved a revenue of 11.201 billion yuan, a year-on-year increase of 43.54%; The net profit attributable to the parent company was 796 million yuan, a year-on-year increase of 130.92%. In terms of business segments, the revenue of petrochemical products reached 7.285 billion yuan in 2021, a year-on-year increase of 76.30%; The average price reached 926609 yuan / ton, a year-on-year increase of 86.33%; The gross profit margin reached 14.40%, with a year-on-year increase of 2.44 percentage points; The revenue of surface living products was 3.099 billion yuan, a year-on-year increase of 5.98%; The average price reached 722873 yuan / ton, a year-on-year increase of 16.81%; The gross profit margin reached 14.41%, a year-on-year decrease of 4.43 percentage points. In Q4 of 2021, the company achieved a revenue of 3.182 billion yuan, a month on month increase of + 5.53%; The net profit attributable to the parent company was 192 million yuan, a month on month increase of + 16.21%; The gross profit margin reached 7.24%, down 7.73 percentage points month on month. The gross profit margin declined. Due to the adjustment of accounting standards in the reporting period, the freight was transferred to operating costs. Therefore, the relevant offset was carried out in 2021q4, resulting in a significant increase in operating costs in the quarter, while the selling expenses were negative.
In terms of period expenses, the company’s sales / management / financial expense ratio in 2021 was 0.63% / 3.03% / 0.62% respectively, with a change of – 2.62% / – 1.05% / – 0.61% compared with the same period last year, and the expenses were well controlled; Meanwhile, in 2021, the net cash flow generated from the company’s operating activities reached 180 million yuan, a year-on-year decrease of 64.24%, mainly due to the increase in material procurement expenditure due to the early locking of raw material prices in response to the rise in raw material prices in the current period; Therefore, by the end of 2021, the company’s inventory had reached 1.302 billion yuan, an increase of 38.50% over the end of 2020
Dukuda has cost advantages, and the production capacity of Hangzhou petrochemical company contributes to the performance increment
The company is one of the leading enterprises in China’s oil and chemical industry. As of the end of the reporting period, the company has an oil and chemical production capacity of 810000 tons / year and a market share of more than one third in China. At the same time, the company is actively expanding its production capacity. The 100000 t / a new production capacity of Hang Youhua is in the final stage of construction. The project mainly includes 40000 t / a monostearate, 10000 t / a laurate, 20000 t / a OPO structural ester, 20000 t / a oleic acid and 10000 t / a synthetic ester. Among them, oleic acid has been put into trial production, the installation of other units is nearing the end, and 20000 t / a OPO is expected to be put into trial production in June 2022. As a nutritional supplement for infants, the market price of OPO is about 50000 yuan / ton, with high added value; Meanwhile, the 250000 T / a oil chemical production capacity of Zhongyuan daily chemical ecological industrial park is also actively promoted. In terms of existing production capacity, the company’s dukuda base has an oil and chemical production capacity of 450000 tons / year. Because it is located in Jakarta Free Trade Zone, Indonesia, it has obvious advantages in palm oil purchase price, tax policy, production cost and so on. In 2021, dukuda subsidiary achieved a revenue of 3.849 billion yuan, a year-on-year increase of 115.68%; The net profit was 395 million yuan, a year-on-year increase of 504.6%, and the performance was greatly improved. With the continuous oilization of the product structure and the continuous highlighting of dookuda’s cost advantage, the profitability of the company’s oilization business is expected to continue to increase.
Continuous expansion of surface active production capacity and flexible procurement strategy to maximize benefits
In the field of surfactants, the company still has a strong voice, in which the market share of the company’s largest product AES and the second largest product Las both rank first in the same industry. At present, the company has a surface active production capacity of 1.04 million tons / year, and a new production capacity of 300000 tons / year is under active construction. In terms of capacity layout, the company has made a reasonable layout of national production bases. Under the background of the epidemic, it has obvious advantages in customer delivery capacity and transportation cost management. At the same time, the company adopts the strategy of “multi-point continuous tracking and comprehensive optimal procurement”. For aliphatic alcohol polyoxyethylene ether, the direct raw material of surface active, the company has established a stable entrusted processing chain of “natural oil aliphatic alcohol aliphatic alcohol polyoxyethylene ether”. When the oil price is appropriate, the company directly purchases the oil and obtains aliphatic alcohol polyoxyethylene ether through two processes; When the price of fatty alcohol is appropriate, the company directly purchases fatty alcohol and processes it together to obtain fatty alcohol polyoxyethylene ether; When the price of aliphatic ethylene oxide is appropriate, the company directly purchases aliphatic ethylene oxide. Through flexible procurement strategy, the cost can be minimized and the benefit can be maximized under the condition of large fluctuation of upstream raw material price. With the expansion of production and marketing scale and the improvement of cost control level, the competitiveness and profitability of the company will be further enhanced.
Expand the liquid washing OEM business, which is expected to bring new performance growth points
The company always adheres to the development strategy of becoming bigger and stronger around its main business. In addition to continuously building new production capacity of oilchemicals and surfactants, the company also actively extends the industrial chain and cuts into the OEM field of daily chemical consumer goods. At present, the company has a 100000 t / a OEM capacity in Zhenjiang, Jiangsu Province. After two years of trial operation, the current customers are stable. In 2021, the company’s processing business achieved a revenue of 122 million yuan, a year-on-year increase of 48.01%; The gross profit margin of sales is 26.14%, and the processing quantity reaches 77100 tons. At the same time, the company has accelerated the layout in relevant fields. The 500000 T / a OEM capacity of Zhongyuan daily chemical ecological industrial park is in the construction stage, and it is expected to contribute to the performance increment in 2022; The EIA Reply of Meishan daily chemical products project with an annual output of 500000 tons is under application; Cangzhou’s annual production capacity of 500000 tons of washing products is also actively promoted, and the project land will be won in October 2021 and December 2021 respectively. Compared with Zhenjiang OEM base, the newly-built capacity is mostly matched with the upstream surfactant project, which can provide raw materials by itself, with significant integration advantages. At the same time, with the continuous construction of OEM capacity, the scale advantage will continue to strengthen, and it is expected to become a new performance growth point of the company in the future.
Scientific and technological innovation leads development, and the core competitiveness is continuously enhanced
Zanyu Technology Group Co.Ltd(002637) as a surfactant enterprise transformed from professional scientific research institutes, it has undertaken the strong professional R & D strength of the original scientific research institutes and the concept of innovation driven development, and the R & D expenses have been steadily increasing. In 2021, the company’s R & D expenses reached 140 million yuan, a year-on-year increase of 2.07%. In 2021, the company completed the development of new products and technologies such as “industrialization technology of tail gas reuse” and “key technology of biological enzyme method”, published 35 papers and applied for 12 national invention patents; Applied for 22 national, provincial and municipal scientific research projects and obtained 9 projects; Participated in large-scale technological transformation and production engineering projects, formed three achievements transformation, and achieved remarkable scientific research results. At the same time, the company also actively industrializes the scientific research achievements, and continues to promote the adjustment of the company’s product structure and the improvement of product quality. Among them, the self-developed new sulfonation process will be used in new projects. The new green surfactant alkyl glycoside APG and amino acid salt will build large-scale production units, scientific and technological innovation will continue to lead the development of the company, and the core competitiveness of the enterprise will be continuously enhanced.
Investment advice and profit forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 1.105, 1.392 and 1.663 billion yuan respectively, and the EPS will be 213, 2.69 and 3.21 yuan / share, corresponding to 9, 7 and 6 times of PE, maintaining the “buy” rating.
Risk tips: implementation of policies, construction progress of new production capacity is not up to expectations, contribution performance of new production capacity is not up to expectations, price fluctuation of raw materials, change of environmental protection policies and sharp economic downturn.
