\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 05 Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) )
Event:
On April 25, 2022, the company released the first quarterly report of 2022: the operating revenue of Q1 in 2022 was 443 million yuan, an increase of 86.16% year-on-year and a decrease of 10.84% month on month; The net profit attributable to the parent company was 60 million yuan, with a year-on-year increase of 119274% and a month on month decrease of 32.80%. The net cash flow from operating activities was 815300 yuan, an increase of 101.16% year-on-year and a decrease of 99.38% month on month. The gross profit margin was 20.73% (a year-on-year increase of 12.23 percentage points and a month on month decrease of 3.13 percentage points), and the net profit margin was 13.71% (a year-on-year increase of 16.02 percentage points and a month on month decrease of 4.40 percentage points).
Key investment points:
The volume and price of main products increased simultaneously, and the operating performance increased year-on-year
In Q1 2022, the company achieved an operating revenue of 443 million yuan, an increase of 86.16% year-on-year and a decrease of 10.84% month on month; The net profit attributable to the parent company was 60 million yuan, with a year-on-year increase of 119274% and a month on month decrease of 32.80%. The company’s revenue and profit in the first quarter increased significantly year-on-year, mainly due to the increase in the sales volume and selling price of the company’s main products. According to wind data, in Q1 2022, the price of calcium hydrogen phosphate was 316439 yuan / ton, an increase of 73.96% year-on-year and a decrease of 12.02% month on month; According to Zhuo Chuang consulting, in 2022q1, the price of calcium dihydrogen phosphate was 393021 yuan / ton, with a year-on-year increase of 58.62% and a month on month decrease of 8.32%. The net profit attributable to the parent company decreased month on month in the first quarter, mainly due to the decline in the price of the company’s main products and the high price of raw materials. According to wind data, in Q1 of 2022, the price of phosphate rock is 620 yuan / ton, which is the same as Q4 of 2021; As of April 25, 2022, the price of sulfuric acid is 924 yuan / ton, which is at a high level in recent years.
In March 2022, the wet process phosphoric acid purification and fine phosphate project invested by the company was completed and put into trial production, which contributed to the growth of the company’s performance. Since entering the second quarter, the prices of the company’s main products have remained high. According to wind data, as of April 25, the price of calcium hydrogen phosphate was 383889 yuan / ton, up 90.67% year-on-year; According to Zhuo Chuang consulting, as of April 25, the price of calcium dihydrogen phosphate was 5650 yuan / ton, a year-on-year increase of 94.83%; According to Baichuan Yingfu, the price of industrial wet process phosphoric acid was 10250 yuan / ton, a year-on-year increase of 113.54%. Under the dual effects of the high price of main products and the production of wet process purified phosphoric acid, the company’s performance in the second quarter is expected to continue to grow.
In Q1 2022, the company’s sales expense was 4.0449 million yuan, with a year-on-year increase of 33.41%, and the sales expense rate was 0.91%, with a year-on-year decrease of 0.36 percentage points and a month on month increase of 0.1 percentage points, which was mainly due to the increase in the sales expense of Guangxi company’s operation compared with the same period of last year; The management expense ratio was 2.68%, a year-on-year decrease of 3.99 percentage points and a month on month increase of 0.4 percentage points; The financial expense rate was 0.74%, a year-on-year decrease of 1.39 percentage points and a month on month increase of 1.4 percentage points. The company has continuously increased its R & D investment. In 2022, the R & D cost of Q1 was 1.5345 million yuan, an increase of 50.31% year-on-year.
The wet process phosphoric acid purification project is put into operation, and the profitability of the company is expected to continue to improve
In 2018, the company implemented a non-public offering of shares to raise funds for the “wet process phosphoric acid purification and fine phosphate project”. The project takes the graded utilization of phosphoric acid as the theme and implements the principle of “combination of acid, fertilizer and salt”. After the completion of the project, the comprehensive utilization capacity of 145000 T / a phosphoric acid, 140000 T / a phosphate fertilizer, 180000 T / a phosphate, 15000 T / a sodium fluosilicate and 1 million T / a phosphogypsum will be formed. The implementation of the project is of great significance for the company to expand the in-depth utilization of purified phosphoric acid, improve the added value of products, enrich product lines and enhance competitiveness. In the first half of 2021, the phase I phosphate fertilizer and phosphate plant of Guangxi project have been put into operation, making a great contribution to the performance growth in 2021. In March 2022, a 100000 ton wet process phosphoric acid purification unit was completed and put into trial production. Meanwhile, in 2021, the basic construction of the company’s 5000 t / a iron phosphate production plant will be completed and some products will be produced. Benefiting from the increase in the proportion of lithium iron phosphate in power batteries and the outbreak of lithium iron phosphate energy storage batteries in China, the demand and price of industrial phosphoric acid and iron phosphate remain high. 100000 t / a purified phosphoric acid in Fangchenggang, Guangxi and 5000 t / a iron orthophosphate in Dongchuan base will become a major contribution to the company’s performance growth this year.
Promote the construction of iron phosphate and lithium iron phosphate projects and accelerate the transformation of new energy
In October 2021, the company and Fangchenggang Port District People’s government planned to sign the project cooperation framework agreement recently, proposing “50000 T / a battery grade lithium iron phosphate cathode material precursor material iron phosphate and supporting Shanghai Pudong Development Bank Co.Ltd(600000) T / a sulfur based sulfuric acid production project” and “100000 t / a battery grade lithium iron phosphate cathode material project”. At present, the 50000 T / a battery grade lithium iron phosphate cathode material precursor material iron phosphate and the supporting Shanghai Pudong Development Bank Co.Ltd(600000) T / a sulfur based sulfuric acid project have obtained the EIA approval on February 28, 2022, and the project is in the preparatory construction stage; The EIA reports of the 100000 t / a battery grade lithium iron phosphate cathode material precursor material iron phosphate project and the 100000 t / a battery grade lithium iron phosphate cathode material project are being handled. The company has two significant advantages in iron phosphate production: (1) raw material cost advantage. Compared with iron phosphate production enterprises that purchase phosphorus sources, the company adopts wet purification process to produce phosphoric acid, which has the cost advantage of phosphorus sources. (2) Manufacturing cost advantage. The by-products in the production of iron phosphate are coupled with the company’s existing phosphorus chemical system. The company can make full use of the by-products, so as to reduce the cost of environmental protection disposal in production, reduce the intermediate chain of manufacturing links and reduce the manufacturing cost. In the future, the company is expected to further expand the production scale of iron phosphate, give full play to the above two advantages and occupy a place in the iron phosphate / lithium iron phosphate track.
Profit forecast and investment rating: it is estimated that the company’s net profit attributable to the parent company in 2022, 2023 and 2024 will be 365, 464 and 654 million yuan respectively, and the corresponding PE will be 13.25, 10.41 and 7.38 times respectively, maintaining the “buy” rating.
Risk warning: macroeconomic fluctuation risk; The production capacity is lower than expected; Risk of price fluctuation of raw materials; Future demand decline; The progress of the new project is less than expected.
