\u3000\u3 China Vanke Co.Ltd(000002) 001 Zhejiang Nhu Company Ltd(002001) )
Performance review
The company released its first quarterly report on April 27, 2022, in which the operating revenue was 4.308 billion yuan, a year-on-year increase of 13.66%, and the net profit attributable to the parent was 1.203 billion yuan, a year-on-year increase of 5.18%.
Business analysis
The prices of main products rose and fell, and they are optimistic that the prices of VA and ve will remain high: during the reporting period, the net profit attributable to the parent company was 1.203 billion yuan, and the performance was in line with expectations. In the first quarter, the prices of the company’s main products rose and fell. Among them, the average prices of 500000 IU / g VA powder, 50% ve powder, 2% biotin, methionine and VD3 in the Chinese market were 235.99 yuan / kg, 88.16 yuan / kg, 68.53 yuan / kg, 21.06 yuan / kg and 91.71 yuan / kg respectively, with year-on-year changes of – 35.25%, 18.23%, 4.71%, – 1.33% and – 29.53% respectively. In the future, China’s vitamin industry is expected to further increase its market share with the help of product cost advantages, and is optimistic about VA and ve with high production capacity in Europe.
There are abundant reserves of product R & D pipelines, and the strength of the platform is expected to be further enhanced: the company has abundant reserves of product R & D pipelines, including the research and development of new menthol synthesis process, the technology and industrialization of preparing adiponitrile by butadiene method, the project of CO production of Caron anhydride and azabicyclic acid, the research on strain development and transformation, and the innovation and industrialization of synthetic process of halothane series ophthalmic drugs. We believe that with the continuous enrichment of product categories, the synergy among business lines is expected to be further strengthened, and the foundation of “chemical +” and “biological +” platforms is expected to be further consolidated. For the nutrition sector, we believe that the company is expected to become a comprehensive solution provider of nutrition additives in the future, and the cycle attribute of the company will be weakened at that time; In the essence sector, with the continuous introduction of new products, the business is expected to continue to grow steadily; At the same time, in the new material business, based on the polymerization process and downstream application research and development of high-performance resin, the company continues to expand and strengthen through high-efficiency, stable, energy-saving and environmental protection professional production.
Investment advice
The company is one of the leaders in China’s fine chemical industry, with good industrial chain scalability and strong market position. We expect the net profit attributable to the parent company from 2022 to 2024 to be 4.621 billion yuan, 5.358 billion yuan and 5.958 billion yuan respectively, with corresponding EPS of 179, 208 and 231 yuan respectively. It is given 20 times PE in 2023 and the target price is 41.6 yuan.
Risk tips
Falling product prices; The progress of the new project is less than expected; Declining demand
