\u3000\u30 China Baoan Group Co.Ltd(000009) 9 Citic Offshore Helicopter Co.Ltd(000099) 0)
Event: the company released the first quarterly report of 2022 and the annual report of 2021.
(1) in 2021, the company achieved an operating revenue of RMB 12.18 billion, a year-on-year increase of + 25.2%, and a net profit attributable to the parent company of RMB 1.01 billion, a year-on-year increase of + 184.0%; Among them, Q4 achieved an operating revenue of 2.61 billion yuan in a single quarter, with a year-on-year ratio of – 14.5% and a month on month ratio of – 17.9%, and a net profit attributable to the parent company of – 100 million yuan.
(2) Q1 company achieved an operating revenue of 3.36 billion yuan in 2022, a year-on-year increase of + 12.4% and a month on month increase of + 28.9%; The net profit attributable to the parent company was 150 million yuan, a year-on-year increase of – 54.9%, an increase of 240 million yuan month on month.
Comments:
The three sectors of “clean energy + new materials + life technology” made concerted efforts, and the company’s performance increased significantly in 21 years: in 2021, with the covid-19 epidemic effectively controlled, the global economy recovered rapidly, and the market demand for the company’s main products was released rapidly. In the clean energy sector, the price rise of petroleum and bulk chemical raw materials drives the price rise of the company’s clean energy chemical products, further driving the rapid growth of the company’s performance; In the new materials sector, benefiting from the high business cycle of the industry, the market demand of the company’s semiconductor display materials, especially liquid crystal products, increased. Among them, the sales of TFT liquid crystal remained high, and the sales of liquid crystal materials for TFT-LCD increased by about 41.11% year-on-year; In the life science and technology sector, the sales of D-ribose raw materials of the subsidiary BLS in the United States increased by about 74% year-on-year, which has basically returned to the pre epidemic level. With the help of the three sectors, the company’s revenue and profit increased significantly in the past 21 years. In order to meet the requirements of the “dual control of energy consumption” policy, the subsidiary Chengzhi Yongqing Shanghai Pudong Development Bank Co.Ltd(600000) T / a methanol to olefin plant was shut down from October 14, 2021 to December 31, 2021, which led to the decline of 2021q4 revenue and profit to a certain extent. The sharp rise in the price of Q1 petroleum and bulk chemical raw materials in 2022 put pressure on the cost side of the company, resulting in a year-on-year decline in Q1 profit.
With the smooth progress of the joint venture hydrogen energy project with AP, the company is expected to usher in profit growth: Chengzhi air product hydrogen energy technology Co., Ltd., a joint venture between the company and AP, signed an agreement with the government of Changshu high tech Zone, Jiangsu Province to accelerate the construction of Changshu’s first hydrogen refueling station and regional investment and operation center. By the end of 2021, the civil construction of the new Changshu Yinhe road hydrogenation station project has been completed, and the follow-up work such as handling trial production procedures is currently under way. In addition to new projects, Nanjing Chengzhi, a subsidiary, now has a hydrogen production capacity of 48600 tons / year, and the purity of hydrogen produced can reach 99.9%, meeting the electronic grade use demand of hydrogen energy vehicles and related electronic products. In the context of “double carbon”, the company’s advantages of low-cost hydrogen production are superimposed, and the whole industrial chain laying capacity after cooperation with AP is expected to bring a new round of benefits and new growth points for the company’s future profits.
Profit forecast, valuation and rating: considering the decline of the company’s profitability caused by the rising cost of raw materials, we lowered the company’s profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit for 20222024 will be 6.41 (down 63%) / 7.09 (down 66%) / 800 million yuan, equivalent to eps0.5% 51 / 0.57/0.64 yuan. The company adheres to the strategy of “one body and two wings” and accelerates the laying of new production capacity. The AP joint venture hydrogen energy project in the clean energy sector and the industrial hemp project in the life technology sector are progressing smoothly. The new material sector continues to optimize the downstream customers and product structure. We are still optimistic about the future development prospect of the company, so we maintain the “buy” rating.
Risk warning: the downstream demand is less than expected, the technology iteration risk, and the product price fluctuates sharply
