\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 486 Jiangsu Yangnong Chemical Co.Ltd(600486) )
The volume and price of the company’s main products rose at the same time, the single quarter performance hit a record high, and maintained the “buy” rating
On April 25, the company released the first quarterly report of 2022, realizing an operating revenue of 5.268 billion yuan, a year-on-year increase of 42.08%; The net profit attributable to the parent company was 904 million yuan, a year-on-year increase of 103.51%; Deduct non net profit of 894 million yuan, with a year-on-year increase of 93.90%, and the single quarter performance hit a record high. We raised the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.898 billion, RMB 2.126 billion and RMB 2.341 billion respectively (original value: 1.547 billion, RMB 19.68 billion and RMB 22.02), EPS will be RMB 6.12, RMB 6.86 and RMB 7.55 per share respectively (original value: 4.99, RMB 6.35 and RMB 7.10), and the corresponding PE of the current stock price will be 18.7, 16.7 and 15.2 times. The rise of grain prices has helped to increase the price of pesticides. The company’s products have ushered in a simultaneous rise in volume and price with the project’s production. It is optimistic that the company will maintain the “buy” rating by virtue of its advantages of research, production and marketing integration, medium and long-term growth.
The price of raw materials is high, and the volume and price of the company’s products rise together, contributing to the steady growth of profitability
With the full production of Youjia phase III project and the first phase of phase IV project completed and put into operation, the company’s production capacity and output increased year-on-year. The output of Q1 technical drugs and preparations reached 25500 and 13900 tons respectively, and the sales volume reached 28400 and 16900 tons respectively; At the same time, the prices of main pesticide products increased. According to the data of Baichuan Yingfu, the average prices of Q1 glyphosate, dicamba and bifenthrin were 73200 yuan / ton, 76800 yuan / ton, with a year-on-year increase of + 149.05%, + 1.03% and + 64.27% respectively; The company announced that the average prices of Q1 technical drugs and preparations were 112100 yuan and 55500 yuan / ton respectively, with a year-on-year increase of 41.26% and 77.21%. Benefiting from the smooth operation of the project and the increase in product prices, the company’s operating gross profit margin increased to 29.77%, a year-on-year increase of + 6.29pcts. At the same time, the prices of caustic soda, trifluoro trichloroethane and phosphorus trichloride, the main raw materials of Q1, increased by 92.7% / 80.0% / 78.1% year-on-year respectively. We believe that the company has achieved cost control, cost reduction and efficiency increase, and its profitability has been steadily improved by virtue of its strong integrated operation ability of research, production and marketing.
Youjia phase IV was rapidly promoted to further consolidate its position as the core supplier of pyrethroid technical drugs in the world
According to the company’s announcement, the first phase of the company’s Youjia phase IV was completed and commissioned in early 2022. The capacity under construction is expected to be put into operation by the end of 2022. At that time, the company will add 7310 tons / year of pyrethroid technical drug capacity, with a total capacity of 21500 tons. The company has complete industrial chain and obvious cost advantage. We are optimistic that the company will actively promote the construction of new projects with the advantage of industry-leading engineering transformation, At the same time, it is expected to continuously increase the global market share with the help of Syngenta group’s brand and sales channels.
Risk tips: sharp decline in demand, less than expected launch of new production capacity, exchange risk, intensified market competition, etc.
