\u3000\u3 Guocheng Mining Co.Ltd(000688) 199 Tianjin Jiuri New Materials Co.Ltd(688199) )
Event 1: on the evening of April 25, the company released its annual report for 2021. In 2021, the company achieved a revenue of 1.252 billion yuan, a year-on-year increase of 23.83%; The net profit attributable to the parent company was 166 million yuan, a year-on-year increase of 21.15%. Among them, Q4 company achieved a revenue of 358 million yuan in 2021, with a year-on-year increase of 17.85% and a month on month increase of 34.90%; The net profit attributable to the parent company was 57.51 million yuan, a year-on-year increase of 154.20% and a month on month increase of 134.86%.
Event 2: on the evening of April 25, the company released the first quarterly report of 2022. In 2022, Q1 company achieved a revenue of 423 million yuan, an increase of 35.84% year-on-year and 18.08% month on month; The net profit attributable to the parent company was 54.78 million yuan, a year-on-year increase of 43.22% and a month on month decrease of 4.76%.
The production and sales of photoinitiators are large, and the company’s performance is growing steadily. By the end of 2021, the three subsidiaries of the company, Shandong jiuri, Changzhou jiuri and Hunan jiuri, had a total capacity of 18825 tons / year of photoinitiators and related products, an increase of 31.4% compared with the end of 2020. Benefiting from this, the production and sales of photoinitiators of the company increased significantly in 2021. In 2021, the company’s photoinitiator output reached 17783 tons, with a year-on-year increase of 30.0%; The sales volume reached 20351 tons, with a year-on-year increase of 19.77%. Driven by the significant increase in production and sales, the company’s photoinitiator business revenue increased by about 23.5% year-on-year in 2021. In addition, the gross profit margin of photoinitiator products rebounded slightly in 2021, with a year-on-year increase of 2.52pct. In 2022, the sales unit price of Q1 company’s products increased significantly year-on-year. Under the sales strategy of “stable volume and rising price”, the overall operating revenue of the company increased steadily. Meanwhile, Hongrun chemical acquired by 22q1 company at the end of 2021 was officially included in the scope of consolidated statements, which played a positive role in the growth of the company’s revenue.
Continue to expand the production capacity of photoinitiators and lay out photoresist related materials to accumulate growth power. On March 15, 2022, some workshops of the 9250 ton series photoinitiators and intermediates project invested and constructed by the company’s subsidiary Inner Mongolia jiuri began to be put into operation gradually. In addition, the company’s Huaihua Jiuyuan project with an annual output of 24000 tons of photoinitiator and Shandong jiuri project with an annual output of 32300 tons of light curing materials and water purification agent are also in orderly progress. After the completion of the above project, it will further expand the production capacity of the company’s photoinitiator and UV curing materials and enhance the company’s competitive strength in the UV curing industry chain. In addition, the company’s subsidiary big crystal new material layout has a thousand ton photoresist and supporting reagent project, and big crystal information layout has a special photosensitizer project with an annual output of 600 tons of microelectronic photoresist. The photosensitizer project is expected to be completed in May 2022, and the photoresist and supporting reagent project is expected to be completed and put into operation in December 2023. On the basis of continuously consolidating the leading position of photoinitiator industry, the company further extends to the field of electronic chemicals to accumulate sufficient power for the future growth of the company.
Profit forecast, valuation and rating: the company’s performance in 2021 slightly exceeded expectations, and the performance in 2022q1 met expectations. We maintain the company’s profit forecast for 20222023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 238 / 351 / 544 million yuan respectively. As a leader in the photoinitiator industry, the company continues to expand product capacity and consolidate its position in the industry. At the same time, it further extends to electronic chemicals, which is expected to open up growth space and maintain the “overweight” rating of the company.
Risk tip: the price of products and raw materials fluctuates, the capacity construction is less than expected, and the product verification risk.
