\u3000\u3 Shengda Resources Co.Ltd(000603) 379 Zhejiang Sanmei Chemical Industry Co.Ltd(603379) )
2022q1 performance increased by 203.87% year-on-year, the industry continued to improve and maintained the “buy” rating
The company achieved a revenue of 1.180 billion yuan in 2022q1, a year-on-year increase of 40.41%; The net profit attributable to the parent company was 193 million yuan, a year-on-year increase of 203.87%; The net profit deducted from non parent company was 176 million yuan, with a year-on-year increase of 122.05%; The net cash flow from operating activities reached 237 million yuan, a year-on-year increase of 281091%. During the reporting period, although the company was affected to some extent due to public health events, its production and operation remained stable, achieved good benefits, and its performance slightly exceeded our expectations. We maintain the company’s profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 835 million yuan, 1102 million yuan and 1774 million yuan, and the EPS will be 1.37, 1.81 and 2.91 yuan / share respectively. The current share price corresponds to 13.4, 10.1 and 6.3 times of PE, maintaining the “buy” rating.
The production and operation of the company is running smoothly, there is no worry about short-term disturbance, and the opportunity of reversing the trend of the industry may be approaching
The company’s 2022q1 output of fluorine refrigerant, fluorine foaming agent and hydrogen fluoride was 44800 tons, 6800 tons and 32100 tons respectively, with a year-on-year increase of + 14.87%, + 14.08% and – 5.01% respectively; The export sales volume was 2700 tons, 460 tons and 18900 tons respectively, with a year-on-year increase of – 21.69%, + 11.85% and + 7.43% respectively; The revenue was 823 million yuan, 80 million yuan and 159 million yuan respectively, with a year-on-year increase of + 35.24%, + 16.01% and + 23.79% respectively; The average prices of the products were 30744, 17385 and 8413 yuan / ton respectively, with a year-on-year increase of + 72.69%, + 3.72% and + 15.23% respectively, and a month on month increase of – 15.00%, – 4.9% and – 5.73% respectively. The company has a deliverable R142b production capacity of 4200 tons. Benefiting from the rapid growth of downstream PVDF demand, R142b, as the raw material of PVDF, is in short supply, the price has risen sharply, and the gross profit margin of the product has increased significantly. According to the data of Baichuan Yingfu, the average price (including tax) of R142b from 20221 to April is 190200 yuan / ton, up 102.96% from the average price of 2022. It is expected that R142b will continue to contribute higher profits to the company in the short term. The dark hour of the company’s main refrigerant industry has passed. As the head enterprise of China’s refrigerant industry, the rise of the high certainty cycle of the refrigerant industry in the future will bring greater performance flexibility to the company.
Extend the fluorochemical industry chain and advance to the field of fluoropolymers
The company plans to change the original 10000 t / a pentafluoropropane project into 5000 t / a FEP and 5000 t PVDF projects, with an estimated total investment of 1.08 billion yuan and a construction period of 2 years. This means that the company will officially enter the field of fluoropolymers and further extend the fluorochemical industry chain. In addition, the company’s lifsi, LiPF6, high-purity phosphorus pentafluoride, AHF technical transformation and expansion, r116 production and other projects are progressing smoothly.
Risk tips: safety production risk, policy change risk, sluggish terminal consumption, etc.
