\u3000\u3 Shengda Resources Co.Ltd(000603) 086 Shandong Cynda Chemical Co.Ltd(603086) )
Event 1: on the evening of April 25, the company released its annual report for 2021. In 2021, the company achieved a revenue of 2.203 billion yuan, a year-on-year increase of + 16.19%; The net profit attributable to the parent company was 177 million yuan, a year-on-year increase of + 0.76%. Among them, 2021q4 company achieved an operating revenue of 692 million yuan, a month on month increase of + 46.40% and a year-on-year increase of + 22.64%; The net profit attributable to the parent company was 94 million yuan, a month on month increase of + 281.96% and a year-on-year increase of + 74.46%.
Event 2: on the evening of April 25, the company released the first quarterly report of 2022. In Q1 of 2022, the company realized an operating revenue of 561 million yuan, a month on month increase of - 18.92%, a year-on-year increase of + 25.80%; The net profit attributable to the parent company was 76 million yuan, a month on month increase of - 19.07% and a year-on-year increase of + 266.00%.
In the 21st year, the sales volume increased steadily, the price of 22q1 products rose sharply, and the performance exceeded expectations. Thanks to the smooth operation of Liaoning Xianda phase I production line with an annual output of 3000 tons of enoxadone and 2000 tons of enoylmorpholine, the dominant position of the company's main products has been further consolidated, and the company's operating revenue has increased steadily in 2021. In terms of herbicide business, the series of products of enoxate and herbicide have performed well. Among them, the sales of enoxate and herbicide in 2021 increased by 38.1% and 45.2% respectively year-on-year. Although the sales volume of imipram and clomazone declined, the company's herbicide business revenue increased by 13.1% in 2021. In terms of fungicide business, thanks to the production of the new production line, the sales volume of the series of enoylmorpholine products increased significantly by 76.61% year-on-year and the operating revenue increased by 32.27% year-on-year under the disadvantage of reducing the average selling price by 25.09%. In 2022, Q1 company's performance increased significantly, and the volume and price of some products in the herbicide business increased simultaneously. Among them, the average selling price of enoxadone series products increased the most year-on-year, with a year-on-year increase of 76.17%, and the operating revenue increased by 47.72%; The sales volume of herbicide products increased the most year-on-year, with a year-on-year increase of 55.09%, and the operating revenue increased by 83.54%.
Actively promote the construction of production capacity of various businesses and improve the profit space of the company. By the end of 2021, the company has an annual production capacity of 13500 tons of herbicides and 2500 tons of fungicides. In addition to the normal production and operation of Liaoning Xianda phase I project with an annual output of 3000 tons of enoxadone and 2000 tons of enoylmorpholine, Liaoning Xianda phase II 5000 tons of enoxadone technical drug has been accepted and put into trial production in December 2021. Liaoning Xianda is speeding up the construction of phase III project. The construction of imidazolinone series products and patented new compounds in the project will increase the output value and profits of Liaoning Xianda. At the same time, the company plans to build phase IV, phase V and other technical drugs and intermediates projects in Liaoning production base in the future. At present, various procedures have been carried out successively. In addition, the company's annual output of "5000 tons of high-end comprehensive intelligent preparation workshop" project is under construction in the company's headquarters factory, and trial production is expected to start in June 2022. The completion of the project will effectively broaden the company's bactericide product line and further improve the market share of bactericide.
Profit forecast, valuation and rating: the price of herbicide products rose sharply, and the performance of Q1 company exceeded expectations in 22 years. We raised the company's profit forecast for 22-23 years and added a new 24-year profit forecast. It is estimated that the net profit attributable to the parent company in 22-24 years will be 2.41 (up 15.9%) / 3.13 (up 28.3%) / 371 million yuan respectively, still maintaining the "buy" rating.
Risk tip: the price of products and raw materials fluctuates, the capacity construction is less than expected, and the downstream demand is less than expected.
