\u3000\u3 China Vanke Co.Ltd(000002) 391 Jiangsu Changqing Agrochemical Co.Ltd(002391) )
Event: Jiangsu Changqing Agrochemical Co.Ltd(002391) released the annual report of 2021, realizing an operating revenue of 3.765 billion yuan, a year-on-year increase of 25.15%; The operating profit was 285 million yuan, a year-on-year increase of 26.29%; The net profit attributable to shareholders of listed companies was 249 million yuan, a year-on-year increase of 27.48%, and the net profit after deducting non recurring profits and losses was 241 million yuan, a year-on-year increase of 35.92%. Based on the total share capital of 654 million shares, the diluted earnings per share was 0.38 yuan (0.37 yuan after deducting non-profit), and the operating cash flow per share was 0.66 yuan. Among them, the operating revenue in the fourth quarter was 1.164 billion yuan, a year-on-year increase of 65.57%; The net profit attributable to the shareholders of the listed company was 13 million yuan, a year-on-year increase of 159.97%; Equivalent to single quarter eps0 02 yuan. In the first quarter of 2022, the company realized an operating revenue of 914 million yuan, a year-on-year increase of 24.30%; The net profit attributable to the listed company was RMB 4.1 billion, a year-on-year increase of 4.9 billion.
The price of main products rose, and the growth of the company’s revenue and gross profit was in line with expectations. In 2021, the company’s operating revenue increased by 756 million yuan year-on-year. In terms of products, the revenue of herbicide business increased by 319 million yuan year-on-year, the pesticide business increased by 282 million yuan year-on-year, and the fungicide business increased by 153 million yuan year-on-year. The revenue growth mainly came from the herbicide and pesticide business. The company’s comprehensive gross profit margin is 17.51%, yoy-0.77pcts; The gross profit was 659 million yuan, an increase of 109 million yuan year-on-year. By product, the gross profit of herbicide is 137 million yuan, the gross profit margin is 8.99%, yoy-2.39 PCTs; The gross profit of insecticide is 385 million yuan, and the gross profit margin is 22.76%, yoy + 0.54 PCTs; The gross profit of bactericide is 85 million yuan and the gross profit margin is 18.48%, yoy + 0.52 PCTs. Therefore, the company’s pesticide business is the main source of gross profit growth. In terms of price, the market price of the company’s main products has experienced varying degrees of rise in the past 21 years. In the herbicide business, the annual increase of technical drugs of sulfamethoxate / enoxate / Nicosulfuron methyl / isoxapine / cyhalofen was 61.1% / 124.5% / 25.0% / 16.3% / 72.4% respectively; The annual increase of imidacloprid / acetamiprid / butyl ether urea / fipronil / indazocarb in insecticides was 127.3% / 123.4% / 10.3% / 8.3% / 8.5% respectively; Tricyclazole technical drug in bactericide increased by 15.4% in the whole year.
Period expenses: the “three expenses” expense rate remained stable, and the R & D expenses increased year-on-year. The total expenses of the company during the period were 253 million yuan, with a year-on-year increase of 34 million yuan, of which the sales / management / financial expenses were 68 / 141 / 44 million yuan respectively, with a year-on-year increase of 09 / 07 / 18 million yuan respectively. The company’s R & D expenses were 150 million yuan, an increase of 22 million yuan year-on-year; The newly increased R & D expenses are mainly used for the R & D of new products, new processes and new technologies of technical drugs such as glufosinate / chloramphetamine benzamide, dicamba, oxime ester and haloperidol.
The convertible bond raised investment project and Changqing Hubei production base are progressing smoothly, providing guarantee for the company’s performance growth. By the end of 2021, Changqing Nantong’s 6000 ton annual production of dicamba technical drug project has been put into trial production; The project with an annual output of 2000 tons of 2,6-diisopropylaniline and the project with an annual output of 2000 tons of Kungfu pyrethrin technical drug in Changqing Hubei production base have been put into trial production. The project with an annual output of 600 tons of fipronil technical drug has entered the stage of pressure test and leakage test, and the project with an annual output of 3000 tons of thiamethoxam technical drug is in the stage of equipment installation.
Profit forecast and Valuation: considering the progress of the company’s projects and the changes in the prices of main products and raw materials, we adjusted the estimated net profit of the company from 2022 to 2024 to be 380 million yuan, 530 million yuan and 680 million yuan respectively (the previous value was 420 million yuan and 540 million yuan from 2022 to 2023 respectively), maintaining the investment rating of “overweight”.
Risk tips: the boom of pesticides is declining, the prices of products and raw materials fluctuate sharply, the progress and profitability of new projects and construction bases are lower than expected, and foreign trade environmental risks
