\u3000\u3 Shengda Resources Co.Ltd(000603) 916 Sobute New Materials Co.Ltd(603916) )
Adversity shows its leading nature. The company realized a net profit of 80 million yuan to its parent in Q1 and maintained the “buy” rating
On April 28, the company released the first quarterly report of 2022, with an operating revenue of 716 million yuan, a year-on-year increase of – 7.28%, and a net profit attributable to the parent company of 802481 million yuan, a year-on-year increase of + 2.79%. Under the downward pressure of macro-economy and the spread of the epidemic in East China, the company has shown its steady operation ability and anti risk ability as always. We maintain the profit forecast for 20222024. We predict that the net profit attributable to the parent company will be RMB 725 million, RMB 857 million and RMB 996 million in 20222024, corresponding to EPS of RMB 1.73, RMB 2.04 and RMB 2.37/share respectively, and the current share price corresponding to PE of 13.1, 11.1 and 9.6 times respectively. We are optimistic that in the context of steady growth, infrastructure projects will be concentrated. As a leader in the concrete admixture industry, the company’s production capacity will be released simultaneously, which will fully benefit and maintain the “buy” rating.
Since mid March, the epidemic has spread in East China, the company’s sales volume has been under pressure, and the sales unit price and gross profit margin have been stable
Q1 company realized a net profit attributable to its parent company of 802481 million yuan, a year-on-year increase of 2.79%, and deducted a net profit not attributable to its parent company of 749083 million yuan, a year-on-year decrease of 0.89%. According to the operating data released by the company, the company achieved sales of 198000 tons, 12300 tons and 45800 tons of high-performance water reducing agent, high-efficiency water reducing agent and functional materials in the first quarter, with a year-on-year increase of -26900 tons, – 15600 tons and + 13300 tons respectively. Since the epidemic in East China began to spread since March, it had an impact on the construction of infrastructure projects, and the company’s sales volume was also under pressure. The gross profit margin of Q1 company was 39.23%, which was basically stable year-on-year and month on month. The notes and accounts receivable of Q1 company were 2.953 billion yuan, a decrease of 370 million yuan compared with the end of 2021. The asset liability ratio of Q1 company was 40.53%, a decrease of 3.12pcts compared with the end of 2021, mainly due to the decrease in the amount of long-term loans, notes payable and accounts payable.
Stable growth expectations are superimposed on the company’s production capacity. We are optimistic that the company is stable and upward and ready to go
According to the announcement, the company’s Guangdong Jiangmen base and Zhenjiang functional material base will gradually release production capacity from 2022 to 2023, while the Jiangsu Lianyungang Port Co.Ltd(601008) base is expected to start production from 2023 to 2024, and the company will maintain a high-speed growth trend under the leadership of two academicians. In the context of steady growth, the company’s production capacity investment and infrastructure development are carried out simultaneously, and the company will fully benefit. In addition, as the leader of wind power grouting materials in China, the company is rising rapidly, which will help the rapid growth of functional materials business segment; The testing business has a broad market space. We expect the company to continue its steady growth and form a good synergy with the main business. Against the trend, the company will show its leading nature and firmly believe that the company is ready to go.
Risk tip: the production capacity is less than expected, the downstream demand has fallen sharply, and the macro economy has declined.
