\u3000\u3000 Sichuan Hebang Biotechnology Co.Ltd(603077) (603077)
Product price increase superimposed cost control advantages, the company’s performance may reach a record high and maintain the “buy” rating
On January 12, the company issued an announcement on the pre increase of performance in 2021. It is estimated that the net profit attributable to the parent company will reach 3.0-3.3 billion yuan in 2021, with a year-on-year increase of 7227.36% – 7960.09%, and the annual performance may reach a record high. We maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 3.008 billion yuan, 4.063 billion yuan and 4.540 billion yuan respectively, corresponding to EPS of 0.34, 0.46 and 0.51 yuan / share respectively. The current stock price corresponds to PE of 10.6, 7.8 and 7.0 times from 2021 to 2023. Benefiting from the high prosperity of its main products glyphosate, glyphosate and Lianhe alkali since 2021 and the company’s advantages in safety, environmental protection and cost control, the company’s performance has increased significantly. In the future, with the continuous production of photovoltaic projects, the company’s platform layout advantages will be highlighted, the growth space can be expected, and the “buy” rating will be maintained.
Q4 glyphosate, glyphosate and United alkali continued their high boom, and the company ushered in a significant improvement in performance
According to the company’s announcement, the company expects the net profit attributable to the parent company to increase by RMB 2.959-3.259 billion year-on-year in 2021, with a year-on-year increase of 7227.36% – 7960.09%; It is estimated that the non net profit attributable to parent deduction in 2021 will increase by RMB 2.621-2.921 billion year-on-year, with a year-on-year increase of 687.36% – 766.04%. Since 2021, benefiting from the improvement of environmental protection requirements and the further clearing of backward production capacity caused by the epidemic, the expansion of production capacity has been limited, superimposed on the growth of downstream demand, the prosperity of the company’s glyphosate, glyphosate and alkali products has increased. According to the data of Baichuan Yingfu, soda ash, ammonium chloride, glyphosate and glyphosate continued their high boom in 2021q4. The average market prices in the fourth quarter were 3322.9 yuan / ton, 1136.4 yuan / ton, 42300 yuan / ton and 78700 yuan / ton respectively, with a month on month ratio of + 37.05% / + 5.62% / + 62.25% / + 50.19% respectively. The company has the capacity of 1.1 million T / a soda ash / ammonium chloride, 58000 T / a glyphosate and 200000 t / a glyphosate. With the southwest soda giant and the global leading position of glyphosate, the company’s performance has been greatly improved.
The green energy subsidiary plans to be split and listed, the photovoltaic project is smoothly promoted, and the company’s growth is prominent
According to the company’s announcement, Chongqing 8GW photovoltaic packaging materials and products project and 10GW ultra-high efficiency single crystal Cecep Solar Energy Co.Ltd(000591) silicon wafer project (start-up scale 1-2gw) arranged by the company are expected to be completed and put into operation successively from 2022 to 2023; By the end of 2021, the holding subsidiary Wujun Guangneng had completed the share reform. In order to make Wujun Guangneng professional, focus on the field of green energy, and achieve better and stronger development in this field, the company plans to start the planning work related to the IPO of Wujun Guangneng. We believe that with the orderly promotion of photovoltaic glass and monocrystalline silicon projects, the integration of the company’s new energy materials industry line is deepened, and the development prospect is expected.
Risk tips: product prices fall, production capacity is less than expected, policy implementation is less than expected, etc.
