\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
Events
On April 26, the company released the first quarterly report of 2021. In the first quarterly report of 2021, the company achieved an operating revenue of 1.01 billion yuan (year-on-year + 23.04%) and a net profit attributable to the parent company of 126 million yuan (year-on-year + 39.66%). The company’s performance exceeded expectations, mainly because the smooth operation of phase I of Zhuhai project brought the company’s revenue and profit to a new level.
Business analysis
Leading anti-aging agent, with continuous expansion of production capacity. According to the announcement, the company currently has a production capacity of 34900 tons / year of antioxidants, 217 million tons / year of light stabilizers (excluding intermediates) and 16000 tons / year of u-pack products, with significant advantages in scale and product supporting. In terms of projects under construction, the 60000t Zhuhai project of the company was completed and put into operation in the first quarter of 2022. In addition, 3200t / a light stabilizer (excluding intermediates) capacity and 51500t / a u-pack product capacity are under construction. The successful completion of the Zhuhai project of the company will greatly supplement the short capacity of the company and drive the company’s revenue and profit to a new level.
The merger and acquisition of Kangtai shares went smoothly, opening the second growth curve. The company continued to promote the merger and acquisition of Kangtai shares, a lubricant additive enterprise, and continued to layout the lubricant additive industry. According to the announcement, the basic transfer of ownership was completed on April 26. The company started the 5000 ton / year water dispersion antioxidant project in Tianjin factory, and developed different nano level hydrotalcite technologies in conjunction with Japan’s top technical talents. Taking Rianlon Corporation(300596) Zhuhai as the carrier, the company started the construction approval procedure of 20000 ton / year synthetic hydrotalcite project.
Profit forecast and investment suggestions
Considering the successful operation of Zhuhai phase I of the company, we revised the net profit attributable to the parent company from 2022 to 2024 to be RMB 552 (+ 3%), 643 (- 0.2%) and 758 (- 0.4%) million respectively; EPS is 2.70 yuan, 3.14 yuan and 3.70 yuan respectively. The current market value corresponding to PE is 15.78x, 13.55x and 11.49x, maintaining the “overweight” rating.
Risk tips
Market competition intensifies and product prices fall; The demand is less than expected; The pace of capacity construction and delivery was lower than expected.
