2021H1's net profit increased 57% over the same period last year, maintaining the "overweight" rating of 2021 Chenghua shares achieved revenue of 630 million yuan in the first half of the year, an increase of 64% over the same period last year, and a net profit of 87 million yuan, an increase of 57% over the same period last year. Of this total, 2021Q2 achieved revenue of 330 million yuan, an increase of 50% over the same period last year, and a net profit of 37 million yuan, an increase of 3% over the same period last year. We maintain the company's 2021-2023 return net profit forecast, due to equity dilution EPS dropped to 0.98 yuan 1.27max 1.64 yuan, combined with comparable company valuation level (Wind consensus expected 21-year average of 22 times PE), considering the high valuation of Akron's optical materials business, the company was given 21 times PE for 21 years, corresponding to the target price of 20.58 yuan (previous value 20.85 yuan, corresponding to 15xPE 2021E), maintaining the "overweight" rating.
Capacity release led to the improvement of the company's revenue scale, R & D investment continued to increase 2021H1, the annual production capacity of 15000 tons of alkyl glycosides project gradually released, driving the company's revenue growth.
The revenue of the flame retardant / surfactant / silicone rubber business was 1.9 million yuan, up 167%, 43%, 25%, and the gross profit margin was 22%, 28%, 13%, respectively, down 4.0/5.3/9.1pct from the same period last year. The main raw materials needed by the company are ethylene oxide, propylene oxide, and so on. The average spot price of domestic EO/PO in the first half of 2021 was 7680, 17548 yuan / ton, up 9% and 96% respectively over the same period last year. The company's sales / management / financial expense rate decreased by 3.9/1.9/0.1pct to 2.7%, 4.6% and 0.1%, respectively, while the R & D expense rate increased by 0.8pct to 3.6% year-on-year.
Actively expand the international market, 5000 tons of amino polyether is expected to be put into production in the second half of the year in recent years, the company continues to expand brand influence in overseas markets, 2021H1 export revenue of 120 million yuan, accounting for 19% of revenue. During the reporting period, the company's projects under construction increased by 119% compared with the same period last year, mainly due to the increased investment in Huaian Chenghua's 5000-ton amino polyether project and the R & D building, and the investment progress of Huaian Chenghua project is 65%. It is expected to reach the expected state of use by the end of August 21. The investment schedule of the R & D building project is 41%, and it is expected to be available by the end of October 22. With the recovery of the epidemic, the Huai'an alkyl glycoside project is expected to further release production capacity and is expected to thicken the company's performance.
Selected into the third batch of specialized special new "little giant" enterprise list, new starting point and new journey according to the company's announcement on August 10, the company was selected into the third batch of specialized special new "little giant" enterprise list of the Ministry of Industry and Information Technology. The title refers to the small and medium-sized enterprises that focus on market segmentation, strong innovation ability, high market share, mastery of key technologies, excellent quality and efficiency, will help to improve the company's brand awareness and have a positive impact on business development. In the future, as the company continues to increase R & D investment, the company's core competitiveness in the field of fine chemicals will be further enhanced.
Risk hint: the risk of substantial fluctuations in raw material prices, the risk that downstream demand falls short of expectations, and that the commissioning of new projects does not meet expectations.
