\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 117 China National Chemical Engineering Co.Ltd(601117) )
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Event description:
On April 27, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved a total operating revenue of 137919 billion yuan, a year-on-year increase of 25.39%; The net profit attributable to the parent company was 4.633 billion yuan, a year-on-year increase of 26.64%. In the first quarter of 2022, the company realized an operating revenue of 35.291 billion yuan, a year-on-year increase of 41.54%; The net profit attributable to the parent company was 980 million, a year-on-year increase of 19.7%; Earnings per share was 0.16 yuan. Meanwhile, according to the company’s announcement data, the cumulative newly signed contract amount was 103914 billion yuan, a year-on-year increase of 90.05%.
In 2021, the company’s revenue and performance increased steadily, and the revenue in 2022q1 continued the high growth trend.
In 2021, the company operated steadily and achieved synchronous growth in revenue and performance. In 2021, the company’s annual revenue reached 137919 billion yuan, a year-on-year increase of 25.39%; The net profit attributable to the parent company was 4.633 billion yuan, a year-on-year increase of 26.64%. Among them, the main business income of chemical engineering was 107945 billion yuan, with a year-on-year increase of 28.67%, accounting for 78.96% of the main business income. The operating income of infrastructure business / Environmental Governance Business / industrial business / modern service business was 141.76/28.97/69.694729 billion yuan respectively, with a year-on-year increase of – 13.58% / + 129% / + 70.41% / + 40%. The increase of the company’s annual operating revenue is mainly due to the increase of the company’s contracting tasks and project development and construction in 2021, especially the smooth promotion of the Baltic Sea project, resulting in the year-on-year increase of revenue; However, due to the rise in the price of upstream raw materials, the company’s direct materials and subcontracting costs increased year-on-year, resulting in a narrowing of the gross profit margin in 2021. In 2021, the company’s three expenses were well controlled, and the company’s sales expenses / administrative expenses / financial expenses were RMB 412 / 2466 / 463 million respectively, accounting for 0.3% / 1.8% / 0.34% of the total revenue, a year-on-year decrease of 0.05/0.27/0.15 percentage points. Affected by the expansion of the company’s business scale, the sales and management expenses increased by 6.22% / 9.08% year-on-year; Due to the decrease of some unit interest rates in the current period, the interest expenses decreased, and the financial expenses decreased by 13.1%. It warms up all year round. The company’s total newly signed contract amount was 103914 billion yuan, a year-on-year increase of 90.05%. There are 537 contracted survey and design projects, including 878 construction supervision projects. In terms of regional distribution, the domestic contract amount reached 93.008 billion yuan, a year-on-year increase of 85.86%; The amount of overseas contracts reached 10.906 billion yuan, a year-on-year increase of 135.3%.
Three major projects have been put into operation, accelerating the transformation to the field of new materials
The company’s three major projects have been successfully put into operation, and new materials are expected to gradually increase in volume. The three new chemical material projects of adiponitrile nylon new material, aeroneneneba gel and degradable plastic under construction of the company have been smoothly promoted, and breakthrough progress has been made in many projects:
1) Tianchen Qixiang adiponitrile project was successfully started at one time on March 31, 2022, and the first batch of qualified products were successfully produced, and the product quality reached high-grade products.
2) the Hualu new material aerogel gel project was successfully started up on February 27, 2022. Currently, the first batch of qualified silicon-based nano aerogel composite insulation felt products have been produced.
3) the first phase of the degradable plastic PBAT project with an annual output of 100000 tons built by Zhonghua Tianye new materials Co., Ltd., a subordinate enterprise of the company’s subsidiary chemical industry third Design Institute Co., Ltd., has been successfully mechanically completed and has entered the stage of start-up and trial production as a whole.
The company continues to promote the technical reserve and R & D of new materials and accelerate the expansion to the field of new materials. According to the announcement of the company, the “dielectric film material for dry DC capacitor” project and the “100000 ton renewable energy electrolytic water hydrogen synthesis ammonia demonstration project” participated by the company have entered the publicity list of the national key R & D plan of the Ministry of science and technology in 2021. Poe project has completed the pilot process package and project site selection, and has entered the pilot design and construction stage; The construction of MCH (methylcyclohexane) pilot plant and catalyst preparation have been completed, started up smoothly and maintained stable operation; The high efficiency and environmental protection catalyst project has provided small-scale test samples to relevant suppliers and passed the performance test of China Automotive Research automobile inspection center. The pilot process package of nylon 12 project has been completed, and a 1000 ton pilot plant will be built in Zibo base. China’s first hppo (propylene oxide) industrial plant built with its own technology was successfully started up in Jiangsu Fuqiang new materials Co., Ltd. The pilot project of waste gasification in Tengzhou, Shandong Province has been mechanically completed and will be commissioned soon. The demonstration device for waste to hydrogen oil conversion has been built in Fangshan, Beijing, and has been put into trial operation. The purity of hydrogen produced has reached the standard. The large supercritical carbon dioxide cycle generator set participated in the research and development was put into operation in Xi’an. The carbon black recycling project has completed the preparation of laboratory samples. All position intelligent welding Siasun Robot&Automation Co.Ltd(300024) relies on Sichuan Leshan polysilicon project to complete the final acceptance, and is being popularized and used by relying on projects under construction. The company accelerates the layout of nylon new material field, simultaneously explores the planning of multiple nylon new material projects in other regions, and gradually industrializes its own technology, which will play an important role in filling the short board of China’s Nylon industry chain, promoting the upgrading of material technology in the field of national defense, promoting the healthy development of the industry and expanding the market application pattern. With the company’s in-depth layout in the field of new materials, it is expected to enhance its voice in the new material industry and bring new profit increments at the same time.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 5.816 billion, RMB 8.028 billion and RMB 10.062 billion respectively, with a year-on-year growth rate of 25.5%, 38.0% and 25.3%. The corresponding PE was 9.33, 6.76 and 5.39 times respectively. Maintain the “buy” rating.
Risk tips
The production capacity is lower than expected; Tighten the review of chemical projects; Enterprise safety production risk, etc. The average roe of equity was 11.21%, with a year-on-year increase of 0.69 percentage points.
In 2022q1, the revenue continued the high growth trend, and the engineering demand of the downstream chemical industry rebounded. In the first quarter of 2022, the operating revenue was 35.291 billion yuan, a year-on-year increase of 41.54%; The net profit attributable to the parent company was 977 million yuan, a year-on-year increase of 19.73%; The change of operating cash was -6.881 billion yuan, with a year-on-year change of 219.57%. The negative change of operating amount is mainly due to the increase of engineering demand in the downstream chemical industry. The company vigorously develops the market and promotes production, operation and construction. While the price of upstream raw materials continues to rise, the company increases its procurement and preparation efforts.
At the beginning of the year, the good trend of business continued, and the amount of newly signed contracts increased significantly
In 2021, the newly signed contract amount of the company was 269.77 billion yuan, an increase of 18.604 billion yuan over the same period of the previous year, a year-on-year increase of 7.41%. Among them, the newly signed domestic contracts amounted to 220117 billion yuan, an increase of 18.422 billion yuan over the previous year, a year-on-year increase of 9.13%, accounting for 81.59% of the total newly signed contracts; The newly signed overseas contracts amounted to 49.653 billion yuan, an increase of 182 million yuan over the previous year, a year-on-year increase of 0.37%, accounting for 18.41% of the total newly signed contracts. From January to March 2022, it mainly benefited from the rising demand for construction projects in the downstream chemical industry, and the rapid growth of newly signed orders. With the further mitigation of the impact of the epidemic, the company’s domestic and overseas businesses have further improved
