\u3000\u3 China Vanke Co.Ltd(000002) 109 Shaanxi Xinghua Chemistry Co.Ltd(002109) )
Shaanxi Xinghua Chemistry Co.Ltd(002109) publish the annual report for 2021. In 2021, the company achieved a total operating revenue of 2.837 billion yuan, a year-on-year increase of 46.25%; The net profit attributable to the parent company was 539 million yuan, a year-on-year increase of 151.82%.
The profit growth in 2021 is mainly due to the rise of average sales price. 1) In terms of operating revenue by product, the operating revenue of liquid ammonia, methanol, DMF and mixed amine in 2021 increased by 31.88%, 39.99%, 105.17% and 27.34% year-on-year respectively to 7.19, 3.19, 959 and 495 million yuan; 2) In terms of product prices, the average sales prices of liquid ammonia, methanol, DMF and mixed amine in 2021 changed by 49.12%, 39.18%, 100.07% and 43.87% year-on-year respectively to 298614, 202679, 1032060 and 885064 yuan / ton; 3) In terms of gross profit margin of products, the gross profit margin of liquid ammonia, methanol, DMF and mixed amine in 2021 changed by -0.93, 2.48, 21.78 and 4.73 percentage points year-on-year to 16.39%, – 22.18%, 57.75% and 37.47% respectively; 3) The rates of sales, management and financial expenses changed by – 0.27, – 0.88 and – 0.66 percentage points respectively year-on-year in 2021, and the total rate of three expenses changed by – 1.82 percentage points to 2.95%.
The company takes the ethanol business as the new performance growth point, forming a production pattern of “one head and many tails”. The company plans to invest in the construction of “industrial upgrading and local transformation project”, the main content of which is to build a project with an annual production of 160000 tons of methyl acetate or 100000 tons of ethanol, with a total investment of 742 million yuan. Syngas and methanol in the company’s existing business are the main raw materials for the production of methyl acetate and ethanol. The company will form a production pattern of “one end and many tails”. Taking syngas as the source, the company will take into account the production of liquid ammonia, methanol, methylamine, DMF, methyl acetate, ethanol and other products, prolong the company’s industrial chain, increase the ability to resist the risk of market price fluctuation and increase the company’s income.
The company maintains a high dividend ratio, abundant funds and good cash flow. Based on the total share capital of 1052944789 shares as of December 31, 2021, the company plans to distribute cash dividends of 1.50 yuan (including tax) and 15794171835 yuan to all shareholders for every 10 shares. The total amount of cash dividends distributed this time accounts for 29.33% of the net profit attributable to the owners of the parent company in the consolidated statements of 2021, taking fully into account the interests and reasonable demands of investors and better repay shareholders.
Profit forecast and reference rating. We estimate that the net profit of the company from 2022 to 2024 will be 773 (increased by 3.85%), 919 (+ 12.23%) and 967 (newly introduced) million yuan respectively, and EPS will be 0.73, 0.87 and 0.92 yuan respectively. Referring to the valuation of comparable companies in the same industry, the company will be given 9 times PE in 2022, and the corresponding target price will be 6.60 yuan (8.06 yuan in the previous period, 18.06% lower based on 13 times PE in 2021), maintaining the rating of “better than the big market”.
Risk warning. The progress of production capacity under construction did not meet expectations, and the prices of liquid ammonia, DMF and other products fluctuated sharply, the prices of raw materials fluctuated, and the macro economy declined.
