\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 873 Meihua Holdings Group Co.Ltd(600873) )
Non net profit deducted in 2022q1 was 1.136 billion yuan, a year-on-year increase of 193.39%. The company announced that the revenue in the first quarter was 6.712 billion yuan, a year-on-year increase of 26.45%; The net profit attributable to shareholders of listed companies was 1.159 billion yuan, a year-on-year increase of 183.71%; Deduct non net profit of RMB 1.136 billion, with a year-on-year increase of 193.39%; The basic earnings per share was 0.37 yuan (0.13 yuan in the same period of last year); The gross profit margin reached 26.24%, a year-on-year increase of 9.77 percentage points.
The pattern of amino acid industry is improving, and the increase of volume and price drives the high growth of performance. In terms of sub sectors, 1) the operating revenue of animal nutritional amino acid products increased by 35.65% over the same period of last year, which was due to the release of 300000 tons of lysine production capacity of Jilin Meihua, a subsidiary of the company, the simultaneous increase of lysine volume and price, and the rise of the price of threonine and other feed products; 2) The operating income of food taste trait optimization products increased by 22.39% over the same period of last year, mainly due to the rise in the prices of monosodium glutamate, food grade xanthan gum and flavored disodium nucleotide. According to the data of Zhuo Chuang information, as of April 28, 2021, the price of monosodium glutamate was 10150 yuan / ton, a year-on-year increase of 14.04%, and the price difference of monosodium glutamate corn was 969 yuan / ton, a year-on-year increase of 3.73%; The price of lysine was 13000 yuan / ton, a year-on-year increase of 17.65%, and the price difference of lysine corn was 4672 yuan / ton, a year-on-year increase of 40.63%; The price of threonine was 12350 yuan / ton, a year-on-year decrease of 10.83%, and the price difference of threonine corn was 4022 yuan / ton, a year-on-year decrease of 30.32%; The price of xanthan gum was 36250 yuan / ton, a year-on-year increase of 64.77%, and the price difference was 25819 yuan / ton, a year-on-year increase of 86.96%; The price of I + G was 132000 yuan / ton, a year-on-year increase of 59.04%, and the price difference was 112550 yuan / ton, a year-on-year increase of 76.83%.
The company will cancel a total of 47.23 million shares in the future: (1) on November 8, 2021, the company deliberated and approved the proposal on repurchasing the company’s shares by means of centralized bidding transaction. As of April 28, 2022, the company has repurchased 17.16 million shares and paid a total amount of 120 million yuan. The company decided to revise the purpose of the above repurchased shares from employee stock ownership plan and equity incentive to all for cancellation, Reduce the registered capital of the company. (2) On October 28, 2020, the company deliberated and approved the proposal on repurchasing the company’s shares by means of centralized bidding transaction. By the end of September 28, 2021, the company had completed the repurchase plan and actually recovered 34.22 million shares. 4.15 million shares have been used in the employee stock ownership plan in 2021, and one third, i.e. 11.41 million shares, have been used to reduce the registered capital. In addition, according to the company’s announcement on March 11, 2022, the remaining 18.66 million shares will also be cancelled for cancellation to reduce the company’s registered capital.
Continuous optimization of product layout to further enhance the company’s core competitiveness. The 300000 ton lysine and its supporting project of Jilin Baicheng phase III was officially started in March 2021 and officially put into operation in November. After the project is completed and put into operation, the lysine production capacity of the company reaches one million tons, becoming the world’s largest amino acid production enterprise, and its scale advantage in the industry is becoming more and more prominent. In 2022, the company will continue to promote the construction of Tongliao raw material ammonia project, Jilin xanthan gum project, Tongliao starch sugar and other major projects, adapt to the market development trend, continue to optimize the product layout, improve the integration of the industrial chain and continuously enhance the core competitiveness of the company.
Deep cultivation of synthetic biotechnology for many years and continuous expansion of new application fields. The company has independently adopted synthetic biology technology to redesign a series of amino acid strains for more than ten years, established close contacts with many first-class universities and scientific research institutes at home and abroad, jointly carried out the development of high-performance strains of synthetic biology, greatly improved the production conversion rate of glutamic acid, lysine and threonine and improved the performance of products. In 2021, the company’s vitamin VB2 technical transformation project was successfully put into operation. VB2 is one of the few vitamins produced by fermentation, which can be widely used in food, medicine, feed, etc. In the future, the company will continue to invest in the synthetic biology technology of E. coli and Corynebacterium glutamicum in amino acid production, optimize the design of multi category production cell factories such as amino acids, upgrade the gene editing tools used, and expand the application of synthetic biology technology to more challenging industrial microorganisms such as bacillus, so as to design and efficiently construct polysaccharides and glycosides products from scratch, such as adenosine The new generation of production strains of guanosine and inosine will further cover the new application fields of synthetic biology such as other pharmaceutical intermediates, functional foods and functional sugars.
Profit forecast and Valuation: benefiting from the improvement of the competition pattern of the industry and the simultaneous rise of the volume and price of the company’s main products, we raised our profit forecast for the company. We expect the net profit attributable to the parent company from 2022 to 2024 to be 34.33 (up 21.06%), 39.61 (+ 13.16) and 4.657 billion yuan (+ 13.58%) respectively, corresponding to EPS of 1.11 yuan, 1.28 yuan and 1.50 yuan respectively. With reference to the valuation of comparable companies, and considering that the company continues to expand new applications in the field of synthetic biology, the product layout is continuously optimized, and the competitiveness is expected to be further enhanced in the future, the company is given a certain valuation premium. We gave the company 14 times PE in 22 years, corresponding to the target price of 15.51 yuan (the target price in the previous period was 13.00 yuan, an increase of 19.33% based on 14.2 times PE in 22 years), maintaining the investment rating of “better than the market”.
Risk tip: the product price falls, the downstream demand is less than expected, and the progress of capacity under construction is less than expected.
