\u3000\u3 Shengda Resources Co.Ltd(000603) 916 Sobute New Materials Co.Ltd(603916) )
The net profit attributable to the parent company increased by 22.8 billion yuan year-on-year
The company's Q1 revenue / net profit attributable to the parent company was 716 / 80 million yuan, a year-on-year increase of - 7.3% / + 2.8%, and the net profit not attributable to the parent company was 75 million yuan, a year-on-year increase of - 0.9%. The performance of functional materials in Q1 was brilliant. Although the sales volume of water reducing agent decreased due to the epidemic, the effect of price increase of the company further appeared, the gross profit margin continued to improve month on month, and the company continued to be optimistic about its future growth.
The sales volume of water reducing agent decreased slightly, and the performance of functional materials was brilliant
Q1 company's high-performance water reducing agent / high-performance water reducing agent / functional materials achieved revenue of RMB 430 million / 0.24 million / 0.95 million respectively, with a year-on-year decrease of - 9% / - 47% / + 40% /. The decline in revenue is mainly due to the decline in sales volume. Q1 sales volume is 198 / 1.246000 tons respectively, with a year-on-year increase of - 12% / - 56% / + 41% respectively. It is mainly affected by the epidemic situation in East China, and the delivery is blocked. We expect that after the subsequent epidemic situation improves, the delivery is expected to accelerate the recovery. In terms of price, the price of Q1 high-performance water reducing agent / high-performance water reducing agent / functional materials is 2173 / 1912 / 2073 yuan / kg, with a year-on-year increase of + 3% / + 19% / - 1% respectively. On a month on month basis, the price of high-performance water reducing agent is basically stable, and the price of functional materials increases by 20% on a month on month basis. It is expected that it is mainly due to the change of production capacity structure. The company's Guangdong Jiangmen base is expected to be put into operation in July 22, the regional market service capacity will be further improved, and the market share is expected to continue to grow. At the same time, functional materials are expected to continue to develop and are optimistic about the growth prospects of water conservancy projects, offshore wind power and other fields.
The gross profit margin continued to improve and the capital structure further improved
The overall gross profit margin of 22q1 company was 39.2%, basically unchanged year-on-year, and continued to increase by 0.5pct month on month. On the one hand, the effect of product price increase continued to show, on the other hand, it also benefited from the stable, medium and small year-on-year decline in raw material prices. The average purchase price of ethylene oxide of the company decreased by 0.12% year-on-year. We expect that the impact of raw material price fluctuations throughout the year may be weaker than that of last year, and the profitability is expected to improve year-on-year. During Q1, the expense rate was 28.7%, with a year-on-year increase of + 2.0pct, of which the sales / management / R & D / financial expense rate was + 0.8 / + 0.4 / - 0.2 / + 1.0pct respectively. It is expected that the proportion of fixed expenses will increase mainly due to the decline of income, and finally the net interest rate will be 13.5%, with a year-on-year increase of 1.3pct. The net outflow of the company's Q1 operating cash flow was RMB 40 million, mainly due to the increase of the cash payment ratio. According to the calculation, the Q1 cash payment ratio was 155%, year-on-year + 70pct, cash receipt ratio was 142%, year-on-year + 31pct, and the asset liability ratio was 40.5%. Compared with -3.1pct at the end of 21, the capital structure was still optimized.
22 years or fully benefit from stable economic growth, optimistic about medium and long-term growth
The company is a leader in China's water reducing agent industry. The proportion of key engineering fields in downstream demand is relatively high, or it will fully benefit from the steady economic growth in 22 years. With the production of the new base, the company's service response ability will be further strengthened, the market share is expected to continue to increase, and there is still room for optimization at the cost side. At the same time, the demand prospect of functional materials is better. The company accelerates the capacity expansion progress of functional materials. After the 370000 ton functional material project in Jurong, Jiangsu is put into operation, the capacity will nearly double. It is planned to lay out the waterproof business, which is expected to open new growth space in the future. Maintain the forecast of net profit attributable to the parent company for 22-24 years of RMB 660 / 790 / 940 million, maintain the company's 22-year 19x target PE and target price of RMB 29.64, and maintain the "buy" rating.
Risk tip: the production capacity is less than expected, the demand drops, and the price of raw materials rises sharply.
