\u3000\u3 China Vanke Co.Ltd(000002) 001 Zhejiang Nhu Company Ltd(002001) )
Event: the company released its first quarterly report on April 27, 2022. In the first quarter of 2022, it realized an operating revenue of 4.308 billion yuan, a year-on-year increase of 13.66%, a net profit attributable to the parent company of 1.203 billion yuan, a year-on-year increase of 5.18%, and a net profit deducted from non attributable to the parent company of 1.143 billion yuan, a year-on-year increase of 4.07%.
Comments:
Q1 performance is growing, and R & D is under construction at the same time. In the first quarter, the company overcame the adverse impact of some vitamin prices and achieved positive year-on-year growth in performance on a high base. The gross profit margin of sales was 41.55%, down 6.59 PCT year-on-year; The net profit margin on sales was 28.04%, down 2.44 PCT year-on-year. From the expense side, the sales expense rate of Q1 company was 0.53%, a year-on-year decrease of 2.46 PCT; The management fee was 2.52%, with a year-on-year decrease of 0.11 PCT; Financial expenses were 1.59%, with a year-on-year decrease of 0.43 PCT; The R & D expenses reached 5.29%, with a year-on-year increase of 1.02 PCT. Q1 R & D expenses reached 228 million yuan, a year-on-year increase of 42.5%, mainly used for R & D material investment and R & D department salary. In addition, the amount of projects under construction at the end of the first quarter reached 3.7 billion yuan, an increase of 25% over the beginning of the year.
New projects are advancing steadily, waiting for more flowers to bloom. As a leading enterprise in fine chemical industry in China, the company continues to expand its products around nutrition, essence, new materials and APIs, and all sectors are at the leading level in the industry. According to the minutes of the company's investor exchange activities, the main projects under construction include 150000 T / a methionine project (with an existing capacity of 150000 T / a), 30000 T / a taurine project and 7000 T / a PPS phase III Project (with an existing capacity of 15000 T / A, the company is the only enterprise in China that can stably produce fiber grade, injection molding grade, extrusion grade and coating grade PPS) 5000 t / a menthol (which can be used not only in the daily chemical field of food such as toothpaste, perfume, beverage and candy, but also as an irritant to cool and relieve itching to the skin or mucous membrane), 6000 T / a vitamin B6, 3000 t / a vitamin B12, 500 t / a caronic anhydride and 500 t / a azabicyclic (the front-end intermediate of the raw material of the covid-19 oral drug palovider of Pfizer), etc. At present, the construction of various projects is progressing smoothly. The company expects that the production line of Caron anhydride and aza double ring will be put into operation in the second quarter, and other projects except methionine project can be put into trial production this year. In addition, PPA and adiponitrile in the company's new materials sector are in the pilot stage, and perfluoroethyloctane (used for dry eye drugs) in the pharmaceutical sector is expected to be put into construction in 2023. With the development of society and the improvement of living standards, the company's demand for new products has broad prospects and can be expected in the future.
Profit forecast: Based on the premise that the company's vitamin, menthol, PPS and other projects are put into operation within the year or at the end of the year, gradually releasing production capacity, good market demand for products to be put into operation, high added value and other assumptions, we raised the predicted value of net profit attributable to parent company in 2022 and 2023 to 5.059 billion yuan and 6.068 billion yuan (original predicted value of 4.561 billion yuan and 4.961 billion yuan), increased the predicted value of net profit attributable to parent company in 2024 to 6.672 billion yuan, and EPS in 20222024 to 1.96 billion yuan, 2.35 yuan and Maintain the "buy" rating of 59.2 yuan.
Risk tip: the capacity construction is less than expected and the product price drops.
