\u3000\u3000 Zhejiang Nhu Company Ltd(002001) (002001)
In 2021, the net profit deducted from non parent company will increase by 15% – 35% in advance, maintaining the “buy” rating
On January 24, the company released the performance forecast for 2021. The net profit attributable to the parent company is expected to be RMB 4.098-4.811 billion, with a year-on-year increase of 15% – 35%, and the net profit deducted from non net profit is RMB 3.922-4.604 billion, with a year-on-year increase of 15% – 35%; In 2021q4, the non net profit deducted in a single quarter was 720-1403 million yuan, with a year-on-year increase of 18.24% – 130.19%. The year-on-year increase in the net profit attributable to the parent company in 2021 is mainly due to the year-on-year increase in the sales price and sales volume of vitamin E, methionine and other products. We maintain the profit forecast unchanged. It is estimated that the net profit attributable to the parent company in 2021-2023 will be 4.236 billion yuan, 5.004 billion yuan and 5.516 billion yuan respectively, corresponding to EPS of 1.64, 1.94 and 2.14 yuan / share respectively, and the current share price corresponding to PE of 19.7, 16.7 and 15.1 times respectively. We are optimistic that the company will continue to enrich its product line and expand its scale around the “chemical +” and “biological +” platforms, gradually show its growth attributes, and maintain its “buy” rating.
Ve price center rose steadily, and methionine increased significantly year-on-year
According to wind data, the average prices of domestic VA, VE and methionine in 2021 were 315, 80 and 20 yuan / kg respectively, with a year-on-year increase of – 20%, + 24% and + 2% respectively; The average prices of domestic VA, VE and methionine in 2021q4 were 286, 89 and 20 yuan / kg respectively, with a year-on-year increase of – 3%, + 51% and + 19% respectively. BASF has upgraded the ve production line and made great efforts to reduce production. We are optimistic that the supply of VE is tight after industry integration, and the price center is expected to rise steadily. After the 100000 ton methionine plant in phase II of the company was put into operation in October 2020, the release of production capacity led to a significant increase in methionine production and sales in 2021.
VB6 and VB12 have been completed and put into trial production, and strong forces have joined hands to invest in new projects
The company’s Heilongjiang biological fermentation phase II project with an annual output of 3000 tons of vitamin B12, Zhejiang Nhu Company Ltd(002001) life and Health Industrial Park Phase I project with an annual output of 5000 tons of vitamin B6 has been completed for trial production, further enriching the company’s vitamin product categories. On December 26, 2021, the company announced that it had signed a letter of intent with Sinopec Zhenhai Refining and chemical branch. The two sides cooperated to invest in a set of methionine production facilities and explore cooperation in resources and technology, with a total investment of about 3 billion yuan. According to the official account of Weifang’s financial media in January 22nd, Zhejiang Nhu Company Ltd(002001) and BASF cooperate in the first new material project plan to invest 300 million euros, mainly producing special engineering plastics, high-end coatings and other products, focusing on special industries such as aerospace and high speed rail. Now, they have entered the contract negotiation stage and plan to start construction within the year.
Risk tips: the project is delayed, the demand is lower than expected, the industry competition intensifies, the product price drops sharply, etc.
