\u3000\u3 Shengda Resources Co.Ltd(000603) 010 Zhejiang Wansheng Co.Ltd(603010) )
Performance review
60 Yantai Ishikawa Sealing Technology Co.Ltd(301020) 22 issued the annual report of 2021 and the first quarterly report of 2022 on April 30, 2022. The company achieved an operating revenue of 4.115 billion in 2021, with a year-on-year increase of 77.18%; The net profit was 824 million, a year-on-year increase of 109.67%. 1q22 achieved an operating revenue of 890 million yuan, down 3.86% year-on-year and 14.99% month on month; The net profit attributable to the parent company was 129 million yuan, a year-on-year decrease of 36.89% and a month on month decrease of 35.44%.
Business analysis
Phosphorus flame retardants are under short-term pressure, and the company's performance is slightly affected: the company has become the leader of organic phosphorus (halogen-free) flame retardants with the largest output in the world. According to the operating data disclosed by the company, the output of organophosphorus flame retardants was 130900 tons in 2021, with a year-on-year increase of 37.14%; The sales volume was 127600 tons, with a year-on-year increase of 33.19%; The average sales price was 26200 yuan / ton, up 41.79% year-on-year. The volume and price of main products rose simultaneously, driving the substantial growth of the company's performance in 21 years. In Q1 2022, the company was subject to the sharp rise in the price of raw materials, the increase in the sales price of end products was less than that of raw materials, and the gross profit margin of the company was under pressure. At the same time, or affected by the epidemic, the terminal consumption is slightly affected. In 2022, the sales volume of phosphorus flame retardants of Q1 company was 25400 tons, a year-on-year decrease of 22.32%, and the production and marketing rate was 87.02%, which is lower than that in 21 years.
Deep ploughing and overweight the main business, and continue to expand the layout of the industrial chain. The Shandong project has been continuously promoted, the main business has been continuously expanded, and the products have blossomed at many points. The Shandong project of the company plans to produce 319300 tons of functional new materials, including 70000 tons of phosphorus based polyurethane flame retardant and 50000 tons of phosphorus based engineering plastic flame retardant (all BDP). The construction period of the project is 18 months, and it is expected to be completed and put into operation in the first half of 2023. At the same time, the company has arranged the Zhongzhou project in Fujian and entered into lithium-ion electrolyte additives and new conductive materials, which is expected to further enrich the layout of the company's terminal industrial chain.
Investment advice
The company's sales rhythm and the prosperity of end consumption are disturbed by the epidemic, superimposed with the rise of raw material end costs, the price transmission is slightly not smooth, and the company's performance is under significant pressure. Under this scenario, we have lowered the company's profit forecast for 20222023 by 45% and 47% respectively compared with the previous value in 20222023. We expect the company's net profit to be 610 million yuan / 760 million yuan / 930 million yuan in 20222024, corresponding to EPS of 1.04 yuan / 1.30 yuan / 1.58 yuan in 20222024 and PE multiples of 15.6x/12.5x/10.3x in 20222024, maintaining the "buy" rating.
Risk tips
\u3000\u30001. The growth of global new energy vehicles was lower than expected by 2 Repeated outbreaks have a negative impact on the rhythm of end consumption and transportation. 3 Project approval and construction progress are less than expected 4 Risk of impact of dual control of energy consumption on operating rate
