\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 486 Jiangsu Yangnong Chemical Co.Ltd(600486) )
The company released its report for the first quarter of 2022 on April 26, 2022. The company achieved an operating revenue of 5.268 billion yuan, a year-on-year increase of 42.08% and a month on month increase of 102.62%; The net profit attributable to the shareholders of the parent company was 904 million yuan, an increase of 103.51% year-on-year and 336.71% month on month; The net profit attributable to the shareholders of the parent company after deducting non profits was 894 million yuan, an increase of 93.9% year-on-year and 500% month on month; The net operating cash flow was 789 million yuan, a year-on-year increase of 69.47%.
The global agrochemical industry is booming and its performance has increased significantly. Q1 company’s performance has improved significantly. First, Youjia phase III project has reached full production, and the first phase of phase IV project has been completed and put into operation. The production capacity and output have increased compared with the same period of last year. In terms of production and sales, the company’s original drug and preparation output are 25500 tons and 13900 tons respectively, and the sales volume is 28400 tons and 16900 tons respectively. Second, the prices of major pesticide products increased year-on-year. The average selling prices of the company’s original drugs and preparations were 112100 yuan / ton and 55500 yuan / ton respectively, with a year-on-year increase of + 41.26% and + 77.21% respectively. Specifically, in the first quarter of 2022, the price of glyphosate, although somewhat lower than the previous high, remained at a high level. At present, the quotation is 6500066000 yuan / ton. The market of Cypermethrin remains stable and the price is stable. As of April 19, the current market price of high-efficiency cypermethrin technical drug is 215000 yuan / ton; The market price of bifenthrin technical drug is 305000 yuan / ton; The market price of beta cypermethrin masterbatch is 50000 yuan / ton; The market price of Cypermethrin technical drug is 85000 yuan / ton, which is – 14%, – 15.3%, – 5.66% and – 13.27% respectively compared with the beginning of the year. The gross profit margin of 2022q1 company was 29.77%, an increase of 6.28pct over the same period last year and 4.37pct month on month. The expense rate during the period was 7.69%, an increase of 0.5pct over the same period last year.
The commissioning of the first phase of Youjia phase IV was completed, and the company’s industry influence was further improved. The company opened up the markets of Youjia phase III and Baoye products and created new growth points. The first phase of Youjia phase IV was completed and commissioned in early 2022. The products in the first phase involve four varieties: Difenoconazole, nitrosulfuron, bifenthrin and haloperidol. At present, the company has become a global manufacturer with core advantages in the field of pyrethroids, and the number of pyrethroid products ranks among the top in the world. The company’s market share of sanitary pyrethrin in China is about 70%, and the production capacity of dicamba ranks in the leading position in the world. Youjia company was rated as the first batch of green factories in China by the Ministry of industry and information technology. In 2021, the company won the top 20 CAC pesticide export and ACE excellent supplier, and continued to rank second among the top 100 in China’s agrochemical industry. The industry influence of the company was further improved.
Profit forecast, valuation analysis and investment suggestions: it is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 1.55222162927 billion, with a year-on-year increase of 27.0% / 42.8% / 32.1%, corresponding to EPS of RMB 5.01/7.15/9.44 and PE of 22.9/16.1/12.2 times, maintaining the “buy” rating.
Risk warning: the risk that the demand of agrochemical market is less than expected, the risk that the project is put into operation is less than expected, and the risk of sharp fluctuations in the price of raw materials
