\u3000\u3 Guocheng Mining Co.Ltd(000688) 121 Shanghai Supezet Engineering Technology Corp.Ltd(688121) )
Events: (1) the company released its 2021 annual report, which realized a revenue of 3.901 billion yuan in 21 years, with a year-on-year increase of 43.02%; The net profit attributable to the parent company was 315 million yuan, a year-on-year increase of 26.89%. In Q4, the company realized a revenue of 1.703 billion yuan in a single quarter, a year-on-year increase of 101.54%; The net profit attributable to the parent company was 188 million yuan, a year-on-year increase of 183.15%.
(2) the company released the first quarterly report of 2022, and Q1 achieved a revenue of 33.27 million yuan, a year-on-year decrease of 67.74%; The net profit attributable to the parent company lost 58.47 million yuan, a year-on-year decrease of 39.5%. The revenue recognized by the company in a single quarter depends on the time point when the project passes the final acceptance. The projects accepted in the first quarter of this year have less impact, resulting in fluctuations in revenue and profit.
Benefiting from the steady growth policy, the newly-built ethylene project in 22 years is expected to recover growth. In May 21, the national development and Reform Commission deployed and implemented to curb the blind development of “two high” projects, which led to the tightening of the examination and approval of chemical projects in many places. At present, “new infrastructure” such as large refining and chemical industry is an important means of steady growth. Considering that China’s import dependence on ethylene is still close to 40% in 20 years, it is expected that the refining and chemical investment in 22 years is expected to recover. According to the announcement, the company added 4 foreign project contracts and 31 Chinese project contracts in 21 years, which will support the steady growth of revenue and profit this year.
The company has formed its own PDH process package and continues to promote the upgrading of products to diversification and high added value. After years of research and development, the company has formed its own process package for propane dehydrogenation, which has obvious advantages compared with the two existing international technical routes. In the future, the company will continue to use the reserves in process and engineering capacity to increase the investment in process development and engineering capacity in carbon neutralization technology of petrochemical units, clean energy and new materials.
Launch a 22 year restricted stock incentive plan to stimulate employees’ enthusiasm. In February this year, the company issued the 2022 restricted stock incentive plan (Draft), which plans to grant 6.08 million restricted shares (accounting for 3% of the current total share capital of the company); There are 37 proposed incentive objects, including 5 senior managers and 32 others. The equity incentive of the company accounts for a considerable proportion of the share capital and covers many core personnel, which will fully stimulate the enthusiasm of employees.
The investment income of the parent company is expected to be RMB 3.2 billion and RMB 5.407 billion, respectively, corresponding to the operating income of RMB 2.0 billion and RMB 3.9 billion in 2022 and RMB 5.407 billion in 2022, respectively. Maintain the “buy” rating, and the six-month target price is 22.77 yuan, which is equivalent to 11 times the dynamic P / E ratio in 2022.
Risk tip: refining and chemical investment cycle fluctuation, profitability decline, etc.
