\u3000\u3000 Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) (002915)
Event 1: on January 25, 2022, the company released the performance forecast for 2021. It is expected to realize the net profit attributable to the parent company of 170-175 million yuan during the reporting period, with a year-on-year increase of 43.57% – 47.79%, of which the net profit attributable to the parent company of 2021q4 is 32.4523-37.4523 million yuan, with a year-on-year decrease of 18% – 29% and a month-on-month decrease of 34% – 43%; During the reporting period, it is expected to deduct 168-173 million yuan of non parent net profit, with a year-on-year increase of 48.26% – 52.66%, of which 2021q4 deducted 32.0854-37.0854 million yuan of non parent net profit, with a year-on-year decrease of 9% – 21% and a month-on-month decrease of 35% – 44%.
Event 2: on January 25, 2022, the company issued the announcement on signing the project investment contract between the wholly-owned subsidiary and the Management Committee of Qingliu economic development zone. According to the announcement, Fujian Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) gaobao Technology Co., Ltd., a wholly-owned subsidiary of the company, plans to sign the investment contract with the Management Committee of Qingliu Economic Development Zone in the near future to invest in the construction of the “construction project of new electrolyte materials with an annual output of 21000 tons”, which will build 10000 tons of sodium hexafluorophosphate, 5000 tons of lithium difluorosulfonate, 3000 tons of lithium difluorosulfonate The production line of 2000 tons of trifluoromethylsulfonyl chloride and 1000 tons of vinyl fluoride carbonate has a construction period of 2 years and a total investment of 370 million yuan.
Comments:
The prices of hydrofluoric acid and sulfuric acid rose, the technical transformation project was completed, and the profit advantage of fluorine industry chain was deepened. In 2021, with the rapid rise in the price of raw sulfuric acid, the price of hydrofluoric acid also rose rapidly. According to Ifind data, the average price of sulfuric acid in China in 2021 was 639.67 yuan / ton, up 316.6% year-on-year; the average price of sulfuric acid in Q4 in 2021 was 751.82 yuan / ton, up 205.2% year-on-year; In 2021, the average price of hydrofluoric acid in China was 10200 yuan / ton, up 22.1% year-on-year. In Q4, the average price of hydrofluoric acid in China was 12100 yuan / ton, up 55.7% year-on-year and 25.7% month on month. At the same time, with the increase of downstream demand, the sales volume of hydrofluoric acid products of the company increased significantly. At the same time, the product sales volume of the subsidiary gaobao technology has also increased, and its annual output of 200000 tons of sulfuric acid technical transformation project has been completed. In addition to self-use sulfuric acid, the volume and price of exported sulfuric acid have increased significantly, which has significantly improved the profitability of gaobao technology. The price and quantity of sulfuric acid and hydrofluoric acid increased simultaneously, which contributed to a higher performance increment for the company. However, due to the covid-19 epidemic in Shaoxing City, Zhejiang Province, where the company’s main base is located at the end of 2021, due to the needs of epidemic control, the company began to gradually reduce production and orderly temporary shutdown on December 10, which directly affected the normal production and sales of the company’s products in December. However, thanks to the company’s continuous implementation of refined management, cost reduction and efficiency increase, as well as the acceleration of capacity construction and technological innovation, the company’s annual performance still met expectations even under the pressure of epidemic control in December 2021.
Actively arrange new material businesses such as sodium hexafluorophosphate and lifsi, and have deep technical reserves in the field of fluorine chemical industry. Based on the company’s technical advantages in the field of fluorine chemical industry, gaobao mining, a subsidiary, has built a fluorine electrolyte material production line with an annual output of 10000 tons of sodium hexafluorophosphate and 5000 tons of lithium difluorosulfimide in Qingliu Economic Development Zone, and has carried out capacity layout in new energy industries such as sodium ion battery electrolyte and new lithium salt. At the same time, the company participated in the sodium ion battery electrolyte project led by Zhejiang sodium innovative energy Co., Ltd. (hereinafter referred to as sodium innovative energy). The company, together with three partners of sodium innovative energy, Zhejiang Medicine Co.Ltd(600216) and HTC chemistry, will take advantage of the patented technology advantages of sodium innovative energy in the field of sodium ion battery electrolyte to build a sodium ion battery electrolyte industry project in Hangzhou Bay Fine Chemical Park. Sodium ion battery has good low-temperature adaptability, excellent safety performance, relatively low cost, and the production principle is interconnected with lithium-ion battery. Therefore, its industrialized production can directly apply the production chain of lithium-ion battery. In addition, the global new energy vehicle and energy storage market are in the stage of rapid growth. Sodium ion battery is expected to become a new outlet in the industry as a substitute for lithium-ion battery. Sodium hexafluorophosphate, as a solute in the electrolyte of sodium ion battery, can open up the growth space. At the same time, under the demand environment of high energy density and high safety of power battery, the new lithium salt represented by lifsi with better physical and chemical properties than lithium hexafluorophosphate is an important direction of development in the future. The company has carried out forward-looking capacity layout in the field of new energy batteries, such as sodium hexafluorophosphate and lifsi, which is expected to open up space for future development.
The implementation of raised investment projects improves sales and promotes the good development of the company’s performance. In 2021, the “construction project with an annual output of 50 tons of nefloxacin ciclosic acid” and “project with an annual output of 1500 tons of bpef” invested and constructed by the company’s initial public offering of shares have been successfully completed and put into operation. The steady growth of the sales volume of raised investment products provides a guarantee for the continuous upward growth of the company’s long-term performance. In addition, on August 26, 2021, the company’s initial non-public offering of shares was completed. The fixed increase company raised a total of 442 million yuan to invest in the construction of the “annual output of 5000 tons of 4,4 ‘- difluoro diphenyl ketone” project and the “series expansion project of fluorine fine chemicals of Fujian gaobao Mining Co., Ltd.” the project is expected to be completed and put into operation by the end of 2022. While steadily developing the business of medical and agricultural intermediates, the company actively expands fluorine-containing fine chemicals by relying on the existing process, continuously improves the fine fluorine chemical industry chain and improves the profitability of the company.
Profit forecast, valuation and rating: the company’s annual performance is in line with expectations. In addition, as new projects have not been implemented yet, we will not consider the corresponding performance increment for the time being. We maintain the company’s profit forecast from 2021 to 2023. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 173 / 201 / 233 million respectively. Thanks to the gradual improvement of the company’s fluorine chemical industry chain and the completion of the construction of investment projects, the company will continue to develop well and maintain the “overweight” rating of the company.
Risk tips: the risk of product price fluctuation, the construction progress of raised investment projects is less than expected, the landing risk of cooperative projects and the risk of safe production.
