\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
Event: the company released the first quarter report of 2022. In the first quarter of 2022, the company realized an operating revenue of 1.011 billion yuan, a year-on-year increase of 23.04%, a month on month increase of 9.95%, and a net profit attributable to the parent company of 126 million yuan, a year-on-year increase of 39.66% and a month on month increase of 7.13%.
Antioxidant was put into operation, and the company’s single quarter performance hit a record high: the company’s revenue and net profit attributable to parent company in the first quarter of 2022 hit a record high, mainly due to the release of the company’s new production capacity. 60000 tons of antioxidant in Zhuhai Base was put into operation in January 2022, which greatly increased the company’s total antioxidant production capacity. In addition, 3200 tons of light stabilizer and 51500 tons of u-pack will also be put into operation in 2022, which is expected to drive the company’s production capacity to a higher level and its leading position is expected to be further consolidated. In the first quarter, the company’s gross profit margin was 27.31% and net profit margin was 12.39%, which was basically stable on a month on month basis. Due to the rising costs of raw materials, energy, transportation and manpower, BASF, the global leader in anti-aging agents, announced on April 1 that it would increase the price of additives by 15~35%, which is expected to drive the price increase of Chinese products, help the company transmit the rising pressure on the cost side and ensure the stability of profitability.
The acquisition of lubricating oil additive business has been completed, which has become the second growth curve of the company: the company has purchased 998166% equity of Kangtai shares by issuing shares and paying cash. Now it has completed the transfer of ownership, so as to enter the lubricating oil additive market. The company’s anti-aging agent products are the main raw materials of lubricating oil additives. Therefore, this acquisition is an extension of the company’s industrial chain from its original main business to downstream application fields. At present, 85% of the global market share of the lubricating oil additive industry is monopolized by the four major international lubricating oil additive companies. Kangtai Co., Ltd. is one of the only three large-scale private enterprises in China’s lubricating oil additive industry. It has mature product line layout, leading human resources reserves and technical reserves. This acquisition can give full play to synergy, help to quickly seize market share and is expected to become the second growth curve of the company.
The third life curve layout life science direction: the company has actively distributed the field of life science by holding Tianjin oref biology. Now it has opened the construction of pilot workshop in Tianjin Hangu base, and built a life science research institute to further develop nucleic acid drug monomer technology.
Profit forecast and investment suggestions: we expect the net profit attributable to the parent company from 2022 to 2024 to be 530, 652 and 795 million yuan, corresponding to PE of 15.1, 12.3 and 10.1 in three years, maintaining the “buy” investment rating.
Risk tips: the construction progress of new production base slows down, the expansion of product sales business is less than expected, environmental protection and safety production risks, technology disclosure and brain drain risks, and M & A integration risks.
