\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 426 Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) )
On April 30, the company released its first quarterly report. In the first quarter of 2022, it achieved an operating revenue of 8.115 billion yuan, a year-on-year increase of 62.20%; The net profit attributable to the parent company was 2.429 billion yuan, a year-on-year increase of 54.13%; Net profit deducted from non parent company was 2.411 billion yuan, with a year-on-year increase of 53.44%.
The volume and price rose in the first quarter, and the performance increased rapidly year-on-year. The company’s performance in the first quarter increased rapidly year-on-year, mainly due to the year-on-year increase in the price of the company’s leading products; At the same time, a series of technical transformation projects for increasing production and improving quality of dimethyl carbonate, caprolactam and supporting devices were completed and put into operation, providing an increment for the operation of the company. In terms of profitability, the company’s gross profit margin in the first quarter was 39.04%, a year-on-year decrease of 1.23 percentage points and a month on month increase of 12.5 percentage points; The net interest rate was 29.93%, a year-on-year decrease of 1.57 percentage points and a month on month increase of 10.38 percentage points; Roe was 10.35%, up 0.66 percentage points year-on-year and 2.68 percentage points month on month.
The prices of some products in April were still better than the same period last year. As of April 27, the price of urea in April increased by about 39% year-on-year and 8% month on month (Q1); The price of acetic acid decreased by about 32% year-on-year and 10% month on month compared with Q1; The price of DMF increased by about 30% year-on-year and decreased by about 16% month on month (Q1); Octanol decreased by about 3% year-on-year and increased by about 1% month on month compared with Q1; The price of ethylene glycol decreased by about 3% year-on-year and 6% month on month compared with Q1; The price of adipic acid increased by about 15% year-on-year and decreased by about 10% month on month (Q1).
Layout new material projects to help medium and long-term development. The company plans to invest 1.031 billion yuan to build a high-end solvent project. After the project is completed and put into operation, it can produce Shanghai Pudong Development Bank Co.Ltd(600000) tons of dimethyl carbonate (including 300000 tons of sales), 300000 tons of methyl ethyl carbonate and 50000 tons of diethyl carbonate. It is estimated that the annual operating revenue will be 4.545 billion yuan and the profit will be 701 million yuan. In addition, the company announced that it plans to invest 3.078 billion yuan to build a nylon 66 high-end new material project. After the project is completed and put into operation, it can produce 80000 tons of nylon 66 products, 200000 tons of adipic acid products (including 148000 tons of sales) and 13500 tons of by-product dicarboxylic acid products. It is estimated that the annual operating revenue will be 3.356 billion yuan and the profit will be 534 million yuan.
Under the influence of the recent conflict between Russian and Ukrainian chemical enterprises, it is suggested to maintain the relatively high coal price, while the international cost performance of Chinese chemical enterprises is stable. At the same time, the company accelerates the layout of new materials, which is conducive to the sustainable development of the company and ensures the growth of future performance. The company is a leading coal chemical enterprise with cost and environmental protection technology advantages and capacity expansion potential. It is expected to benefit from the supply side reform of the chemical industry under the “double carbon” goal. Due to the company’s good cost rate control during the period, and the price of some products of the company is expected to remain high. At the same time, the company accelerates the construction of projects under construction and raises the profit forecast of the company. It is expected that the basic earnings per share of the company in 20222023 will be 3.63 and 3.90 yuan, and the current share price corresponding to PE is 8.31 times and 7.75 times respectively, maintaining the recommended rating.
Risk warning: there is a risk that the sharp fluctuation of crude oil and coal prices will lead to the decline of product price and price difference; The risk of intensified industry competition; Macroeconomic pressure leads to the risk that the downstream demand is lower than expected; Risk that the capacity release of projects under construction is less than expected; Natural and man-made disasters and other force majeure events.
