Medium catalyst (688267)
On April 28, 2022, the company released its 2021 annual report and the first quarter report of 2022. In 2021, the company realized an operating revenue of 561 million yuan, a year-on-year increase of 38.15%; The net profit attributable to the shareholders of the parent company was 134 million yuan, a year-on-year increase of 45.55%; The net profit attributable to the shareholders of the parent company after deducting non profits was 129 million yuan, with a year-on-year increase of 50.16%; The net operating cash flow was 139 million yuan, a year-on-year increase of 112.16%. In 2022q1, the company realized an operating revenue of 178 million, a year-on-year increase of 1.89%, and a net profit attributable to the parent company of 33 million, a year-on-year decrease of 17.03%.
Sales orders increased and performance increased steadily. The company’s performance growth benefited from the increase of sales orders, the change of sales product structure and the increase of product quantity. In terms of products, the operating revenue of special molecular sieve and catalyst series was 527 million, with a year-on-year increase of 39.14%; Non molecular sieve catalyst series achieved an operating revenue of 20 million yuan, a year-on-year increase of 27.38%. In terms of production and sales, the production / sales of special molecular sieve and catalyst series and non molecular sieve catalyst series are 32 / 3300 tons and 03 / 0300 tons respectively. The company continued to optimize the production process, improve product performance, strengthen cost and expense control, enhance the profitability of the enterprise, and the weighted average return on net assets was 17.20%, an increase of 3.69pct over the same period of last year; The gross profit margin was 45.17%, an increase of 1.11% over the same period last year. Among them, the gross profit margin of special molecular sieve and catalyst series products was 45.85%, an increase of 2.09pct over the same period last year; The gross profit margin of non molecular sieve catalyst series products was 19.9%, a decrease of 6.27pct compared with the same period last year. Q1 gross profit margin was 42.66%, a year-on-year decrease of 1.88pct and a month on month increase of 1.16pct.
Overseas revenue contributes to the main performance, and BASF is a major supplier in the Asia Pacific region. In 2021, the company’s overseas revenue was 311 million, a year-on-year increase of + 67.98%, surpassing China’s revenue (242 million) for the first time, accounting for 55.44% of the total operating revenue, and the CAGR in recent three years was 38.98%. BASF Asia Pacific, BASF Poland and other European regions mobile source denitration molecular sieves are mainly supplied by the company. At present, the demand for mobile source denitration molecular sieves in North America and Europe is relatively stable and the market scale is large. The company’s mobile source denitration molecular sieves have been sold to the European market. With the increasingly strict exhaust emission standards, the company will broaden its development space in the European market and consolidate its market position outside China. The R & D and industrialization projects of special molecular sieves and new environmental catalytic materials in the raised investment projects to meet BASF’s increasing order demand. The company will rely on independent core technology, rich production experience and advanced production technology to provide BASF with products with competitive advantages and high cost performance, so as to achieve win-win situation, so as to further consolidate the current dominant position of the company in the field of denitration molecular sieves and deepen the cooperative relationship with customers.
With strong R & D strength and technical process reserves, it has become a world-renowned provider of special molecular sieves and catalysts. In 2021, the company’s R & D expenses were 37 million yuan, a year-on-year increase of + 32.14%, accounting for 6.59% of its operating revenue. The company and its wholly-owned subsidiaries have a total of 148 patents, including 104 Chinese invention patents and 44 utility model patents. In addition to the existing products, the company also invested a lot of R & D efforts, actively arranged new catalytic materials such as fixed source denitration molecular sieve, photocatalyst VOCs purification catalyst and ethylene glycol catalyst, and formed sufficient technical reserves. In terms of process, the company has hppo propylene oxide production process package, butanone oxime production process package, methoxyacetone production process package, etc. the process package technology is mature and has strong competitiveness in the market. With its core advantages in the field of special molecular sieves, catalysts and other related products, the company actively develops high-quality customer base and builds itself into a global influential provider of special molecular sieves, catalysts and other related products and technical services.
Profit forecast, valuation analysis and investment suggestions: as one of the major manufacturers in the field of industrial catalyst production in China, the company has a relatively comprehensive catalyst industry chain and strong competitive strength in the field of special molecular sieve, catalyst and non molecular sieve catalyst. The performance in 2021 is in line with previous expectations. Due to the increase of production costs such as raw materials, energy and freight in the first quarter of 2022, We adjusted the company’s net profit attributable to the parent company from 2022 to 2024 to be RMB 202 / 327 / 471 million, with a year-on-year increase of 51.3% / 61.6% / 44.0%, corresponding to EPS of RMB 1.15/1.85/2.67 and PE of 22.4/13.9/9.6 times, maintaining the rating of “overweight”.
Risk warning: customer concentration risk; The environmental protection regulatory policies of the automobile industry have a great impact on the sales of the company’s main products; Risk of business cycle change of downstream customers; The risk of traditional fuel vehicle market being crowded by new energy vehicles; Risks caused by failure to maintain the progressiveness of technology and process; The risk that the raised investment project is less than expected.
