\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 929 Snowsky Salt Industry Group Co.Ltd(600929) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved revenue of 4.78 billion yuan (year-on-year + 35.19%) and net profit attributable to the parent company of 402 million yuan (year-on-year + 109.29%). At the same time, the company released the first quarterly report of 2022. During the reporting period, the company achieved revenue of 1.494 billion yuan (year-on-year + 61.96%) and net profit attributable to the parent company of 142 million yuan (year-on-year + 151.68%).
The edible salt business continues to develop and the industrial structure is effectively optimized: the company is one of the leaders in China's salt industry. Its main products are various salt products including edible salt, industrial salt and livestock salt, mirabilite, caustic soda, soda, etc. The company operates steadily. According to the announcement, the prices of the company's main products such as edible salt, industrial salt, caustic soda and soda ash increased during the reporting period. At the same time, through the acquisition of Hunan Chongqing salt chemical, the company's salt product production capacity was effectively improved, the production and sales volume of edible salt and other traditional products increased significantly compared with the previous period, and the scale effect was continuously enhanced. According to the announcement, the company's revenue of large package salt was + 18.6% year-on-year, and that of small package salt products was + 21.48% year-on-year in 2021, The revenue of caustic soda products was + 118.56% year-on-year, and the simultaneous rise of volume and price of traditional products provided a strong boost to the improvement of the company's profitability. It is particularly noteworthy that during the reporting period, the company continued to adapt to the consumption upgrading trend, strengthened the high-end strategic layout, and launched a series of high-end products represented by "snow day" Songtai 997. According to the announcement, the company realized the sales volume of medium and high-end salt of 57000 tons (including Songtai 997 and 3250 tons of ecological salt), a year-on-year increase of + 54.1%. The sales structure of edible salt products of the company was effectively optimized. In addition, through the acquisition of Xiangyu salt chemical, the company's national strategic layout has been basically formed. According to the announcement, at present, the company has six production and processing bases and 30 regional sales branches outside the province. In 2021, the sales volume of small package salt in the market outside Hunan Province reached 201300 tons, a year-on-year increase of + 80.86%. The "snow day" salt products have basically covered all provinces and cities in China. In the future, the company's edible salt business is expected to continue to develop. According to the announcement, the company plans to conclude the energy-saving and efficiency increasing technical transformation project of salt making system and the ultra-low emission environmental protection transformation project of Xiangli salinization 2x75t / h boiler, which is expected to lay a solid foundation for the improvement of the company's profitability in the future.
The field of salt chemical industry continues to extend and is expected to benefit from the upward boom of soda ash: in addition to deeply cultivating the traditional edible salt business, the company continues to extend to the field of salt chemical industry. According to the announcement, in the future, with the gradual implementation of various projects, the company's subsidiary 92 salt industry will have 300000 t / a caustic soda production capacity and 180000 T / a hydrogen peroxide production capacity, and the circular economy development pattern of salt alkali cogeneration and heat and power cogeneration will gradually take shape. In addition, during the reporting period, the company realized the layout of soda ash industry through the acquisition of Xiangyu salinization. Xiangyu salinization uses the combined alkali method to produce soda ash, which has higher raw material utilization than the ammonia alkali method with the same synthetic alkali method, and realizes the combined production of ammonium chloride, which effectively reduces the cost and improves the profitability. According to the announcement, at present, the company has a production capacity of 700000 tons / year of soda ash and 700000 tons / year of ammonium chloride. At the same time, the coal gasification energy-saving technology upgrading and transformation project of synthetic ammonia section has been started in the first half of 2021. It will be fully put into operation in 2023. After the completion of production transformation, it is expected to have a production capacity of 900000 tons / year, and the production scale is expected to continue to expand. Looking forward to the future, under the background of accelerating the development of downstream photovoltaic, lithium battery and other new energy industries, the soda ash industry is expected to enter a boom upward cycle driven by demand. With the continuous development of relevant businesses, the company is expected to fully benefit from the simultaneous increase of volume and price of soda ash products and realize the rapid improvement of profitability.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 580 million yuan, 658 million yuan and 898 million yuan respectively, maintaining the Buy-A investment rating.
Risk warning: the landing of projects under construction is not as expected; The macro environment is less than expected
