\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
Event: on April 27, the company released the first quarter report of 2022. The company achieved a revenue of 1.011 billion yuan, a year-on-year increase of 23.04%; The net profit attributable to shareholders of listed companies was 126 million yuan, a year-on-year increase of 39.66%; The deduction of non net profit attributable to shareholders of listed companies was 125 million yuan, a year-on-year increase of 43.82%.
The profitability has been steadily improved. In 2022q1, the company achieved a revenue of 1.011 billion yuan, a year-on-year increase of 23.04%; The net profit attributable to shareholders of listed companies was 126 million yuan, a year-on-year increase of 39.66%; The deduction of non net profit attributable to shareholders of listed companies was 125 million yuan, a year-on-year increase of 43.82%. In terms of profit margin, the comprehensive gross profit margin was 27.31%, with a year-on-year increase of 1.26 PCT, and the comprehensive net profit margin was 12.39%, with a year-on-year increase of 1.24 PCT. The overall profit increased steadily.
Compete in the global market and have clear anti-aging business objectives. In the global anti-aging industry of polymer materials, BASF, Si, songwon and other global industry giants rely on their business scale, application technology and other advantages to occupy the main markets. In recent years, with the rapid development of China’s polymer material scale, China’s industry concentration has increased rapidly, and has moved from the Chinese market to the international market to compete with the global single strength. As a leading enterprise in China’s anti-aging industry, the company has formulated a clear 2.0 strategic goal, striving to achieve a sales revenue of 5billion yuan in 2023 and 10billion yuan in 2028. For this goal, the company has formulated large and small 3+1 plans and implemented them year by year, gradually approaching the operation capacity and innovation capacity of global industry giants. The existing antioxidant capacity is 34900 tons / year, light stabilizer capacity is 21700 tons / year, and u-pack capacity is 16000 tons / year.
Strong involvement in the lubricant additives track to create the second growth curve. On April 22, 2022, the company completed the equity transfer procedures for the acquisition of Kangtai shares and relevant industrial and commercial change registration, held about 99.82% equity of Kangtai shares in total, and officially entered the lubricating oil additive track. In the global lubricant additive market, Lubrizol, runyinglian and other four international enterprises account for about 85% of the market share in the world and China. Only Kangtai shares, Xinxiang Richful Lube Additive Co.Ltd(300910) and Wuxi South are beginning to take shape in China’s lubricant additive industry. With the transfer of the incremental development center of the global lubricant industry to Asia Pacific developing countries represented by China and India, there is a huge space for localization in the future. According to Kline & Co, the global demand for lubricating oil additives is expected to increase to 5.43 million tons in 2023, with a market size of about 18.5 billion US dollars and a Chinese market size of about 3.8 billion US dollars. After the acquisition of Kangtai shares, the company will create a second growth curve, give full play to the existing production capacity of Kangtai shares, obtain the synergy of “1 + 1 2”, strengthen integration, promote endogenous growth and realize complementary advantages.
Investment suggestion: it is estimated that the company’s earnings per share from 2022 to 2024 will be 2.70 yuan, 3.38 yuan and 3.82 yuan respectively, and the corresponding PE will be 14, 12 and 10 times respectively. Considering that the company, as a leading anti-aging agent enterprise in China, is actively building global marketing channels, seeking the second growth curve and maintaining the “buy” rating.
Risk warning: downstream demand is less than expected, product price fluctuation risk, and the progress of production expansion project is less than expected.
