\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 141 Hubei Xingfa Chemicals Group Co.Ltd(600141) )
Key investment points
Event: on April 29, the company released the first quarter report of 2022. The company achieved a revenue of 8.575 billion yuan, a year-on-year increase of 90.65%, a net profit attributable to the parent company of 1.723 billion yuan, a year-on-year increase of 384.07%, and a deduction of non attributable net profit of 1.717 billion yuan, a year-on-year increase of 387.66%.
Q1 performance continued to grow at a high level, and the industry boom continued. In 2022q1, the company achieved a revenue of RMB 8.575 billion, a year-on-year increase of 90.65%, a month on month increase of 22.03%, a net profit attributable to the parent company of RMB 1.723 billion, a year-on-year increase of 387.66%, and a net profit deducted from non attributable to the parent company of RMB 1.717 billion, a year-on-year increase of 389.60%; The gross profit margin of sales was 35.91%, with a year-on-year increase of 14.15 PCT; The net profit margin of sales was 24.72%, with a year-on-year increase of 16.16 PCT. Driven by the overall high prosperity of the industry, the performance in the first quarter continued the high growth since the fourth quarter of last year. With the introduction of phosphorus chemical industry policies in various regions, we are optimistic about the high shock of the industry in the first half of the year.
With the strong support of the cost side, the price of core products is running at a high level. In the first quarter of 2022, the phosphorus chemical industry generally continued the business cycle since 2021, and the sales prices of the company’s main products glyphosate, yellow phosphorus, phosphate fertilizer and dimethyl sulfoxide continued to maintain a high level. The company’s Glyphosate and silicone contributed 3.140 billion and 987 million revenue respectively, with a significant year-on-year increase of 916.02% and 89.23%, and their corresponding output was 48700 tons and 35900 tons. The output of other traditional phosphorus chemical products phosphate rock, yellow phosphorus, fine phosphate and ammonium phosphate was 345000 tons, 33000 tons, 51700 tons and 234600 tons respectively, and the revenue was 75.46 million yuan, 341 million yuan, 604 million yuan and 711 million yuan respectively, with a year-on-year growth rate of – 30.02%, 196.02%, 51.43% and 81.38%. In terms of product prices, the quarterly average prices of phosphate rock, yellow phosphorus, ammonium phosphate, organosilicon and glyphosate were 377 yuan / ton, 28998 yuan / ton, 3404 yuan / ton, 27619 yuan / ton and 66590 yuan / ton respectively, with a year-on-year increase of 89.87%, 96.76%, 50.37%, 44.88% and 202.41% on the raw material side, and the quarterly average prices of metal silicon and yellow phosphorus were 19679 yuan / ton and 29095 yuan / ton, with a simultaneous increase of 49.15% and 88.11% on the cost side, We believe that product prices are expected to remain high.
New material business continues to be enabled. The company continued to deepen the business map of new materials. Among the expansion projects, Inner Mongolia Xingfa organic silicon new material integrated recycling project (400000 T / a organic silicon monomer Supporting 50000 T / a glyphosate and 300000 t / a caustic soda), Xinjiang Xingfa 50000 T / a dimethyl sulfoxide phase II project, and Xingfu Electronics 70000 T / a electronic grade sulfuric acid and 10000 t / a electronic grade hydrogen peroxide projects were steadily promoted. The company has diversified layout and joined hands with Zhejiang Huayou Cobalt Co.Ltd(603799) to take the lead in the layout of lithium battery materials and continue to empower its new material business.
Investment suggestion: it is estimated that the company’s earnings per share from 2022 to 2024 will be 5.29, 5.52 and 5.61 yuan respectively, and the corresponding PE will be 6.1, 5.8 and 5.7 times respectively, maintaining the “buy” rating.
Risk warning: the project is put into operation less than expected, the downstream demand is less than expected, and the product price fluctuation risk
