\u3000\u3 China Vanke Co.Ltd(000002) 734 Limin Group Co.Ltd(002734) )
Event: Limin Group Co.Ltd(002734) released the annual report of 2021, realizing an operating revenue of 4.738 billion yuan, a year-on-year increase of 7.97%; The net profit attributable to shareholders of listed companies was 307 million yuan, a year-on-year decrease of 20.49%, and the net profit after deducting non recurring profits and losses was 284 million yuan, a year-on-year decrease of 22.03%. According to the total share capital of 373 million shares, the diluted earnings per share is 0.82 yuan (0.76 yuan after deducting non-profit). In the fourth quarter, the operating revenue was 1.036 billion yuan, a year-on-year increase of 30.62%; The net profit attributable to the shareholders of the listed company was 37 million yuan, with a year-on-year increase of 205.35%; Equivalent to single quarter eps0 10 yuan.
The revenue increased steadily, but the gross profit margin fell due to factors such as rising costs, which dragged down the performance. In 2021, the company achieved an operating revenue of 4.738 billion yuan, a year-on-year increase of 7.97%; The comprehensive gross profit margin was 22.6%, down 2.1pcts year-on-year. In terms of business segments, the business of fungicides, pesticides, herbicides and veterinary drugs achieved revenue of RMB 18.7, 17.7, 580 and 480 million respectively, with an increase of RMB 210, - 140, 270 and 40 million respectively. Fungicides and herbicides contributed mainly to the revenue increase. Affected by covid-19 epidemic and the dual control policy of energy, the price of energy and raw materials increased. The company overcame the influence of adverse factors such as supply chain, ensured production and supply, and achieved revenue growth, but the gross profit margin was affected to a certain extent.
During the period, the expenses were well controlled, and the net income from investment fell sharply. During the 21 years, the expense rate of the company was 14.8%, with a year-on-year decrease of about 0.8pcts, of which the sales expense rate was 3.1%, with a year-on-year decrease of 0.3pcts; The rate of administrative expenses was flat year-on-year, at 6.3%; The R & D expense ratio fell 0.1pcts to 3.9%; The financial expense ratio fell 0.5pcts to 1.5%. The net investment income of the company was 30.34 million yuan, a year-on-year decrease of about 67.55 million yuan; Among them, the investment income from associated enterprises was 22.84 million yuan, a year-on-year decrease of about 67.97 million yuan. We believe that the net profit of Xinhe company (34% of the company's shares) decreased significantly (the net profit was about 67.52 million yuan, a year-on-year decrease of about 200 million yuan), which is speculated to be caused by the sharp year-on-year decline in the price of chlorothalonil (according to Sino-Agri Leading Biosciences Co.Ltd(603970) data, the average price of chlorothalonil in China in the 21st year was 21400 yuan / ton, a year-on-year decrease of about 26.3%).
In the past 22 years, we will continue to expand the existing advantageous varieties, consolidate and strengthen the product advantages, and look forward to the implementation of three major projects. The company's subsidiary, xinweiyuan new green biological product manufacturing project (500t doxycycline, 500t tylosin and 500t truncated pleurotin production scale), the project technology comes from xinweiyuan's own reserve technology, and the current construction progress is 50%; The subsidiary Limin chemical has an annual output of 12000 tons of aluminum triethylphosphonate technical transformation project. The products are mainly used as high-end fungicides for wine grapes, and 80% are exported to wine grape producing areas in Europe; The company has an existing capacity of 5000 tons, with an additional 12000 tons this year. The project has entered the trial production stage in April. After the completion of the 5000 ton glyphosate project of Weiyuan biochemical, a subsidiary, will effectively reduce costs and emissions and enhance the company's market competitiveness. At the same time, it lays a foundation for larger scale plant construction and the industrialization of PMG, which has good economic and social benefits. At present, the progress of the project under construction is 2.8%.
Profit forecast and Valuation: considering the price of the company's products has been repaired, but the price of raw materials has increased, as well as the construction of new bases and the rhythm of production capacity in the future, the net profit of the company is expected to be 470 590 690 million yuan from 2022 to 2024 (540 620 million yuan before 2022 and 2023 respectively), maintaining the investment rating of "buy".
Risk tips: the pesticide boom is down, the product price is down, the price of raw materials fluctuates sharply, and the progress and profitability of new projects and construction bases are lower than expected
