\u3000\u3 China Vanke Co.Ltd(000002) 915 Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) )
Key points
Event 1: on the evening of April 24, the company released its annual report for 2021. The company achieved a revenue of 1.526 billion yuan in 2021, a year-on-year increase of + 47.56%; The net profit attributable to the parent company was 174 million yuan, a year-on-year increase of + 46.67%. In 2021, Q4 company achieved an operating revenue of 378 million yuan, with a month on month ratio of – 3.10% and a year-on-year increase of + 42.31%; The net profit attributable to the parent company was 36 million yuan, with a month on month ratio of – 36.57% and a year-on-year ratio of – 20.97%.
Event 2: on the evening of April 24, the company released the first quarterly report of 2022. In Q1 of 2022, the company realized an operating revenue of 395 million yuan, a month on month increase of + 4.54% and a year-on-year increase of + 9.26%; The net profit attributable to the parent company was 42 million yuan, a month on month increase of + 16.50% and a year-on-year increase of + 10.38%.
Comments:
The volume and price of fluorine chemical products increased simultaneously, and the performance increased greatly, which was in line with expectations. Benefiting from the sharp rise in the prices of sulfuric acid and hydrofluoric acid and the initial formation of the company’s vertically integrated industrial chain layout of medicine, pesticides and new materials, the company achieved a significant growth in 2021 and a steady growth in Q1 in 2022. According to Ifind data, in 2021, the average price of sulfuric acid in China increased by 316.6% year-on-year, and the average price of hydrofluoric acid increased by 22.1% year-on-year; In 2022, the average price of sulfuric acid in Q1 in China increased by 34.5% year-on-year, and the average price of hydrofluoric acid increased by 9.84% year-on-year. Under the background of the recovery of hydrofluoric acid Market and the raw material support given by the completion of the 200000 ton sulfuric acid technical transformation project of gaobao technology, the subsidiary, the output of basic fluorochemical products of the company increased by 82.8% year-on-year, the sales volume increased by 35.5% year-on-year, and the business revenue of basic fluorochemical products increased by 52.7% year-on-year in 2021. In addition, the company also benefited from the layout of upstream sulfuric acid and other raw materials. Under the advantage of industrial chain integration, the company effectively avoided the negative impact of the rise of sulfuric acid price on the profitability of hydrofluoric acid and other fluorochemical products, and promoted the gross profit margin of the company’s fluorochemical products business to increase significantly by 9.69pct year-on-year in 2021. In terms of pesticide chemical products, the company’s foreign demand for 2.3.5.6-series products increased. At the same time, some pharmaceutical intermediate workshops of the company carried out product transformation to produce pesticide series products, resulting in a year-on-year increase in the output of pesticide chemical products, a year-on-year increase of 65.35%, a year-on-year increase in sales of 44.18% and a year-on-year increase in operating revenue of 37.77%. In terms of electronic chemicals business, benefiting from the production of bpef series products with high added value, the output of new materials and electronic chemicals of the company increased by 30.50%, the sales volume increased by 48.13% and the operating revenue increased by 41.53% year-on-year.
Actively expand the production capacity of fluorine chemical products, layout the lithium battery new material business, and open up growth space. By the end of 2021, the company has an annual production capacity of 40000 tons of anhydrous hydrofluoric acid, 200000 tons of sulfuric acid, 3000 tons of acetophenone series, 2020 tons of 2,3,4,5-tetrafluorobenzoyl chloride series, 500 tons of bmmi, 1765 tons of 2,3,5,6-tetrafluorobenzene series, 1200 tons of N-methylpiperazine and 1500 tons of bpef. At the same time, the company has steadily promoted the construction of new projects and technical transformation projects. In 2021, the “project with an annual output of 5000 tons of 4,4 ‘- difluoro diphenyl ketone” and “project with an annual output of 300 tons of 3,4-difluoro benzonitrile and 500 tons of p-Fluoronitrobenzene” of the company’s headquarters have been approved by the EIA. The subsidiary gaobao technology “fluorine fine chemicals series expansion project” and the subsidiary Changxing Fluorite “Fluorite Mining expansion project in cekeng mining area” have also obtained the EIA approval. Among them, gaobao technology “fluorine fine chemicals series expansion project” can add 20000 tons / year of fluorobenzene, 3000 tons / year of 4-Fluorobenzoyl chloride, 53000 tons / year of high-purity potassium fluoride, 14000 tons / year of high-purity sodium fluoride and 30000 tons / year of anhydrous hydrofluoric acid. In addition, the company also actively makes capacity layout in new energy businesses such as sodium ion battery electrolyte and new lithium salt. Among them, the subsidiary gaobao mining is building a fluorine electrolytic liquid material production line with an annual output of 10000 tons of sodium hexafluorophosphate and 5000 tons of lithium difluorosulfimide in Qingliu economic development zone. In addition, the company has participated in the sodium ion battery electrolyte project jointly cooperated with sodium innovative energy, Zhejiang Medicine Co.Ltd(600216) , HTC chemistry, and will build a sodium ion battery electrolyte industry project in Hangzhou Bay Fine Chemical Park by taking advantage of the patented technology advantages of sodium innovative energy in the field of sodium ion battery electrolyte. The company’s forward-looking capacity layout in the field of new energy batteries, such as sodium hexafluorophosphate and lifsi, is expected to open space for future development and further enhance the company’s competitiveness.
Profit forecast, valuation and rating: the company’s Q1 performance in 2021 and 2022 is in line with expectations. We maintain the company’s profit forecast from 2022 to 2023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 201 / 233 / 272 million yuan respectively, and the corresponding EPS will be 0.86/1.00/1.16 yuan / share respectively. Thanks to the gradual improvement of the company’s fluorine chemical industry chain and the completion of the construction of investment projects, the company will continue to develop well and maintain the “overweight” rating of the company.
Risk tip: the price of products and raw materials fluctuates, the risk of capacity construction, and the downstream demand is less than expected
