\u3000\u3000 Chengdu Wintrue Holding Co.Ltd(002539) (002539)
Event:
On January 15, 2022, the company announced that the company intends to develop non-public shares to no more than 35 specific objects meeting the conditions specified by the CSRC, including Ms. Mou Jiayun, the concerted action of the actual controller, and the total amount of funds raised is no more than 2.5 billion yuan, It is proposed to invest in the joint production project of comprehensive utilization of phosphate rock resources, production of new energy materials and slow-release and controlled-release compound fertilizer; The company signed the contract on investment and construction of green chemical recycling industrial park project with Yicheng Municipal People’s Government of Hubei Province, which agreed that the company would invest in the construction of green chemical recycling industrial park project in Yicheng city and enjoy the project policy support given by the local government.
Key investment points:
We will increase by 2.5 billion to promote the construction of new energy projects
The total amount of funds raised from the non-public offering of shares shall not exceed 2.5 billion yuan, of which the total amount of funds subscribed by Ms. Mou Jiayun, the concerted action of the actual controller of the company, shall not be less than 200 million yuan. The raised funds are intended to invest in the joint production project of comprehensive utilization of phosphate rock resources, production of new energy materials and slow and controlled release compound fertilizer, It includes the construction of an annual capacity of 350000 tons of battery grade iron phosphate and 600000 tons of slow and controlled-release compound fertilizer, as well as the front-end supporting capacity of 1.5 million tons of phosphate ore beneficiation, 1 million tons of sulfur to sulfuric acid, 300000 tons of wet process phosphoric acid (converted into pure) and 300000 tons of refined phosphoric acid and relevant supporting facilities. On the one hand, the fixed increase of the company is to continue to strengthen the main business of compound fertilizer, on the other hand, it is to grasp the favorable opportunity for the development of iron phosphate industry, accelerate the formation of a complete industrial chain of “phosphate rock phosphoric acid iron phosphate”, expand the scale of the company’s phosphorus chemical industry and enrich phosphorus chemical products, and further consolidate the competitive advantage of the company’s industrial chain.
The layout of new energy has been continuously promoted, and the advantages of industrial chain have been highlighted
The company and Yicheng Municipal People’s Government of Hubei Province signed the contract on investment and construction of green chemical recycling industrial park project, including 100000 tons of battery grade iron phosphate project, 1 million tons of beneficiation project, 200000 tons of wet process phosphoric acid (converted into 100% P2O5) project, 100000 tons of refined phosphoric acid (85% H3PO4) project The fixed asset investment of the project is about 2.15 billion yuan, and the total construction period of the project is 36 months. The company’s cooperation with Yicheng Municipal People’s government aims to make full use of local regional advantages and policy support, seize the development opportunities of new energy, further expand the industrial scale of phosphorus chemical industry and compound fertilizer, improve market competitiveness and profitability, and comply with the company’s development strategy of sustainable growth and strength. The investment project itself not only has cost advantages, but also can form a good industrial synergy with Yicheng base, which is in line with the strategic layout of the company’s industrial chain integration, and is conducive to consolidating the company’s leading advantage in the industry.
The price of fertilizer products remained high, and the profitability of the company remained at a high level
According to wind data, on January 14, 2022, the price of monoammonium phosphate was 2900 yuan / ton, an increase of 42.86% compared with the beginning of 2021; The price of sulfur based compound fertilizer is 3070 yuan / ton, an increase of 42.79% compared with the beginning of 2021; The price of chlorine based compound fertilizer is 2850 yuan / ton, an increase of 50% compared with the beginning of 2021. Affected by the dual carbon policy and dual control of energy consumption, the new capacity of monoammonium phosphate will be limited in the future. At present, the prices of phosphate fertilizer and compound fertilizer are at a historical high. It is expected that the prices of the company’s main products will remain high and volatile in the future, and the company’s profitability will also remain at a high level
The price of fertilizer products remained high, and the profitability of the company remained at a high level
According to wind data, on January 14, 2022, the price of monoammonium phosphate was 2900 yuan / ton, an increase of 42.86% compared with the beginning of 2021; The price of sulfur based compound fertilizer is 3070 yuan / ton, an increase of 42.79% compared with the beginning of 2021; The price of chlorine based compound fertilizer is 2850 yuan / ton, an increase of 50% compared with the beginning of 2021. Affected by the dual carbon policy and dual control of energy consumption, the new capacity of monoammonium phosphate will be limited in the future. At present, the prices of phosphate fertilizer and compound fertilizer are at a historical high. It is expected that the prices of the company’s main products will remain high and volatile in the future, and the company’s profitability will also remain at a high level
Profit forecast and investment rating: the company is the leader of low-cost compound fertilizer, has rich phosphate rock resources, has precipitated in the phosphorus chemical industry for many years, and has accumulated rich production management experience and technical reserves. It is expected that the company will succeed in the field of iron phosphate with perfect resource support, rich production management experience and outstanding industrial synergy. Based on the principle of prudence, the impact of this fixed increase on the company’s performance is not considered for the time being. It is estimated that the net profit attributable to the parent company in 2021, 2022 and 2023 will be RMB 1.141 billion, RMB 1.474 billion and RMB 1.701 billion respectively, and the corresponding PE will be 11.70, 9.09 and 7.88 times respectively, maintaining the “buy” rating.
Risk warning: risk of crop loss caused by natural disasters; The risk of repeated fermentation of global epidemic affecting downstream demand; The supply of chemical fertilizer increased on a large scale; Safety and environmental protection risks; The risk that the project construction progress is less than expected; Risk of uncertain implementation progress of fixed increase.
