Event: on August 20, 2021, the company released its semi-annual report for 2021. 2021H1 realized operating income of 1.262 billion yuan (+ 24.10%), net profit of 64.5453 million yuan (+ 48.74%) and non-return net profit of 50.5258 million yuan (+ 26.82%).
Comment
Q2 performance growth is strong: thanks to the rise in the price of erythritol, the company's Q2 performance has improved significantly. Q2 achieved revenue of 707 million yuan in the single quarter, an increase of 14.18 percent over the same period last year and 27.3 percent month-on-month growth; the net profit returned to its mother was 557.17 billion yuan, up 89.7 percent from the same period last year and 531.1 percent from the previous year.
The general trend of low sugar and sugar reduction has driven high sales growth: as the healthy eating habits of low sugar and sugar reduction have become the trend of the times, the demand for sugar substitutes such as erythritol has increased significantly, driving the company's product sales to increase. 2021H1 realized sales revenue of 255 million yuan (+ 22.3%) for sugar and alcohol products, and its gross profit margin increased by 5.15% over the same period last year to 26.82%. It is estimated that the total net profit contribution is about 45.81 million yuan. The company's erythritol products have the characteristics of natural, zero calorific value, non-participation in blood sugar metabolism, high tolerance and stable acid-heat performance. in the future, with the continuous enhancement of the company's market development ability and customer service ability, it is expected to contribute more profits.
With a fixed increase in production capacity, the competitive advantage has been further revealed: in order to further expand production capacity, the company proposed to raise no more than 712 million yuan in July for the "annual production of 30,000 tons of erythritol crystal project".
And the "annual production capacity of 30,000 tons of aloxone sugar (dry base) project" construction, the controlling shareholder fully subscribed, demonstrating long-term confidence. After putting into production, the company's annual production capacity of erythritol will increase from the current 30,000 tons to 60,000 tons, and the company's market share and market competitiveness will be further enhanced.
Aloxone sugar business layout, the future prospect: aloxetose, as a new generation of functional health sweetener, has been approved by laws and regulations of Japan, South Korea, Australia and other 13 countries, and the market prospect is promising. As one of the earliest enterprises to layout aloxetose project in China, the company has 6 years of relevant R & D experience, and has completed the transformation of aloxetose pilot production line in the second half of last year, and the product has been recognized by the international market. In the future, aloxone sugar business is expected to become the company's core products and a new performance growth point.
Investment suggestion: it is estimated that in 2021-2023, the net profit of the company's return to the parent will be 1.61 qpx 2.77 million yuan, and without considering the impact of additional issuance, the corresponding EPS will be 0.53 trillion yuan respectively, maintaining the "overweight A -" rating.
Risk hints: raw material price fluctuation risk; lower-than-expected demand risk; lower-than-expected capacity investment risk; industry competition aggravating risk; high customer concentration risk
