The performance of the China News is beautiful, and the performance in a single quarter has reached an all-time high. In the first half of the year, the company achieved an income of 3.65 billion yuan, an increase of 110.2% over the same period last year, and realized a net profit of 591 million yuan, reversing losses over the same period last year. The net profit after deducting non-profit was 589 million yuan, which was close to the upper limit of From the perspective of the second quarter, with the increase in the output of downstream lithium batteries and the continued growth of the company's solvent product shipments, the company achieved a net profit of 380 million yuan in the second quarter, an increase of 56% compared with the previous quarter, a record high for a single quarter. At the same time, this is also the fifth consecutive quarter since the second quarter of last year, the company maintained quarter-on-quarter performance improvement!
With the advent of the peak season, the industry will maintain a high boom, and the increase in solvent prices is expected to continue. In the second half of the year, the new energy industry as a whole will enter the peak season, while the new production capacity of the solvent supply side is limited. The prices of five kinds of solvent products have all begun to rise since late July. The unit price of DMC has risen from 9750 yuan to 13350 yuan (+ 37%), EC from 12000 yuan to 13250 yuan (+ 10%), EMC from 19550 yuan to 24200 yuan (+ 24%), DEC from 22000 yuan to 25,200 yuan (+ 15%), and PC from 14, 000 yuan to 17, 150 yuan (+ 23%). Subsequent price increases are expected to continue. As an industry leader covering five kinds of solvents at the same time, on the one hand, the company has the advantage of the whole industry chain, on the other hand, the technical renovation project and Quanzhou project are expected to be released in the second half of the year.
The core technology casts the double advantages of "product + whole industry chain", and the leading position of solvent is tamped. The purity of solvent has a great influence on the electrochemical window of lithium battery, and impurities are easy to be introduced into each step. The company takes the lead in catalytic synthesis and purification process, and can achieve the highest five 9-battery products. At the same time, the company uses high difficulty, high barrier synthesis / purification process to extend the related product chain (solvent / electrolyte / additive), and constantly expand the company value. at present, only the company and Haike can cover the whole product chain. and most competitors can only do some of the products, the company's leading position is difficult to shake!
Financial Forecast and Investment suggestion
We forecast that the company's earnings per share from 2021 to 2023 will be 7.52,10.48,11.46 yuan respectively (the previous forecasts are 5.06,6.25,7.06 yuan respectively. The main reason for the upward forecast is that the solvent price continues to rise under tight supply and demand, the price center goes up, and the company increases its profit through technological transformation.), with reference to the valuation level of the comparable company in 2022. Give Shi Da Shenghua a price-to-earnings ratio of 31 times 2022, corresponding to the target price of 324.88 yuan, maintain the buy rating!
Risk hint
The sales of new energy vehicles fall short of expectations, which affects the sales of solvent products, and the fluctuation of upstream raw material prices affects solvent profitability.