\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 328 Cnsig Inner Mongolia Chemical Industry Co.Ltd(600328) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved revenue of 13.413 billion yuan (year-on-year + 37.54%), net profit attributable to the parent company of 1.477 billion yuan (year-on-year + 166.61%), revenue of 4.412 billion yuan (year-on-year + 86.57%) and net profit attributable to the parent company of 616 million yuan (year-on-year + 141.48%).
The business operation of the company is steady, and the scale advantage is continuously strengthened: the company's business is mainly salt chemical industry, mainly engaged in basic chemical products represented by soda ash, caustic soda, PVC, paste resin and ammonium chloride, fine chemical products represented by sodium metal and sodium chlorate, salt products represented by a small amount of refined salt and industrial salt, and pharmaceutical and health care products represented by Cistanche Yishen granules and compound licorice tablets. During the reporting period, the company's business operation was stable. Under the background of the gradual improvement of covid-19 epidemic, the prices of main products such as soda ash, polyvinyl chloride and caustic soda increased year-on-year, and the sales volume of metal sodium and other products increased year-on-year. According to the announcement, during the reporting period, the output of metal sodium and sodium chlorate products of the company reached 159000 tons, year-on-year + 9.27%, and the output of soda products reached 3113000 tons, year-on-year + 22.4%, The output of paste resin products reached 87300 tons, a year-on-year increase of + 73.6%, the output of caustic soda products reached 378000 tons, a year-on-year increase of + 0.96%, and the output of ammonium chloride products reached 838000 tons, a year-on-year increase of + 5.96%, jointly providing a solid guarantee for the profitability of the company. The company continues to increase its scale advantages. According to the announcement, during the reporting period, the company successfully acquired 100% equity of Qinghai development and investment soda industry, with a soda ash production capacity of 3.8 million tons / year, ranking first in China. In addition, the company's paste resin phase II project was put into operation in 2021. At present, the polymer company's paste PVC project with an annual output of 40000 tons has been running normally, and the company's paste resin production capacity has been increased from 40000 tons / year in 2020 to 80000 tons / year, Contribute to the improvement of the company's profitability. According to the announcement, at present, the company also has a number of projects such as electrolytic lithium production technology research and demonstration project, Jilantai Salt Lake Salt mining technology transformation project, Shanghai Chlor-Alkali Chemical Co.Ltd(600618) DCS compliance upgrading project and Lantai sodium DCS relocation and transformation project, which are still in the process of implementation as planned. In the future, the company is expected to fully benefit from the completion of various projects.
At present, the largest soda ash enterprise will benefit from the prosperity of the industry in the future: according to the announcement, through the successful acquisition of 100% equity of Qinghai development and investment soda industry in 2021, the company's soda ash production capacity has increased from 2.4 million tons / year in 2020 to 3.8 million tons / year, and has become the largest soda ash production enterprise in China. Looking forward to the future, China's soda ash industry is expected to prosper under the favorable conditions of both supply and demand. On the demand side, in the context of China's accelerated realization of the "double carbon" goal, China's photovoltaic and lithium battery industries have developed rapidly, forming a large demand for raw material soda ash. On the supply side, synthetic soda ash, as a product with high energy consumption in the production process and by-products that will have a certain impact on the environment, it is difficult to put in large-scale new production capacity in the future. Under the background of increasingly strict environmental protection policies, it is likely that only natural soda production capacity is expected to expand gradually, In this context, as the leader of soda ash industry, the company is expected to fully benefit from the improvement of industry prosperity, and the profitability of the company is expected to be gradually improved.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 2.68 billion yuan, 2.8 billion yuan and 2.98 billion yuan respectively, and give Buy-A investment rating.
Risk warning: the landing of projects under construction is not as expected; The macro environment is less than expected
