\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 873 Meihua Holdings Group Co.Ltd(600873) )
Event: the company released the first quarterly report of 2022. During the reporting period, the company achieved revenue of 6.712 billion yuan (year-on-year + 26.45%) and net profit attributable to the parent company of 1.159 billion yuan (year-on-year + 183.71%).
All businesses developed rapidly and the profitability was significantly improved: during the reporting period, the company operated stably. According to the announcement, the company’s feed amino acid products such as lysine, threonine and tryptophan achieved a revenue of 2.709 billion yuan (year-on-year + 40.70%), mainly due to the gradual release of 300000 tons of lysine and its supporting projects in Jilin Baicheng phase III, lysine The increase in the price of threonine and other feed products boosted the volume and price. In addition, the revenue of sodium glutamate, nucleotide and other flavor agent products reached 2.233 billion yuan (year-on-year + 20.04%), which fully benefited from the rise in the price of main products such as monosodium glutamate, food grade xanthan gum and flavored disodium nucleotide. In addition, the company’s fertilizer, protein powder, germ, corn bran powder, feed fiber and other large raw materials and by-products achieved a revenue of 1.083 billion yuan (year-on-year + 25.17%), other products such as xanthan gum and trehalose achieved a revenue of 566 million yuan (year-on-year + 7.49%), and pharmaceutical amino acid products such as glutamine, proline, leucine, isoleucine and adenosine achieved a revenue of 121 million yuan (year-on-year – 7.52%), and the company’s multi product portfolio advantages continued to strengthen. Recently, under the background of the continuous rise in the prices of raw and auxiliary materials such as corn, the company effectively controlled its own costs by implementing the corn storage policy, importing corn in advance and adopting the coal long-term association policy. The increase in the sales price of each product was greater than that of raw and auxiliary materials. During the reporting period, the gross profit margin was 26.24%, with a month on month increase of + 1.10pct and a year-on-year increase of + 9.77pct. The profitability of the company was significantly improved.
New production capacity is gradually released and new application fields continue to expand: during the reporting period, the company’s new production capacity is successfully released and its leading position is further consolidated. According to the announcement, the company’s Jilin Baicheng phase III 300000 ton lysine project has reached its production capacity in February 2022, and the lysine production capacity has reached the level of one million tons. At present, it has become the world’s largest amino acid manufacturer, with a significant improvement in scale advantage. The leading position of the company is expected to be further consolidated in the future. According to the announcement, the company will continue to promote the construction of Tongliao raw material ammonia project, Jilin xanthan gum project, Tongliao threonine and other major projects in 2022. In the future, with the gradual implementation of various projects, the profitability of the company is expected to continue to improve. In addition, while the company has a leading level of production process parameters and capacity utilization in the main business field, it is also a full chain synthetic biology company that has realized the whole chain from genome editing to product landing, with significant technical advantages. According to the announcement, in the future, the company will continue to invest in the synthetic biology technology of amino acid production chassis Escherichia coli and Corynebacterium glutamicum, and optimize the design of multi category production cell factories such as amino acids, Upgrade the gene editing tools used, and further cover synthetic biology to other new fields of synthetic biology applications such as pharmaceutical intermediates, functional foods and functional sugars. In the future, with the gradual implementation of various inputs, the profitability of the company is expected to be further improved.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 3.97 billion yuan, 4.57 billion yuan and 4.97 billion yuan respectively, and give Buy-A investment rating.
Risk warning: the demand is less than expected; The implementation of the project is not as expected; The macro environment is less than expected
