Xinjiang Tianye publishes its semi-annual report for 2021. In the first half of 2021, the company achieved an operating income of 5.211 billion yuan, an increase of 35.35% over the same period last year, and a net profit of 967 million yuan, an increase of 54.4%.
The year-on-year increase in revenue in the first half of 2021 is mainly due to the increase in the sales price of the company's PVC resin products.
1) in terms of business, the cumulative income of calcium carbide, special PVC resin, paste resin, PVC resin, flake alkali, granule alkali, cement and clinker changed by 17%, 66%, 98%, 57%, 6%,-69%, 247%, 84% to 4.25,3.64,6.77,16.18,2.23,0.10,2.27,72 million yuan respectively in the first half of 2021. The cumulative sales of 21H1 changed by 7%, 16%,-2%, 10%, 26%,-55%, 217%, 97% to 15, 5, 5, 24, 20, 1, 70 and 370000 tons, respectively. 2) the average sales price (excluding tax) varies from 9%, 43%, 103%, 44%,-16%,-23%, 8%,-10% to 2786, 6891, 13329, 6677, 1109, 1189, 326,195 yuan / ton respectively. 3) the rate of three expenses increased by 1.95 percentage points to 16.25% compared with the same period last year. Among them, the rate of sales, management (including research and development) and financial expenses changed by 1.64, 0.02 and 0.29 percentage points year-on-year to 8.95%, 5.05% and 2.25%.
Green development, environmental protection, low carbon and technological innovation have become the new "engine" for the development of chlor-alkali industry. The company invests to set up Xinjiang Tianye Huixiang New Materials Co., Ltd. (hereinafter referred to as "Tianye Huixiang"), to undertake the project of ultra-clean high-purity alcohol-based fine chemicals with an annual output of 250000 tons and the annual production of 225000 tons of high-performance resin raw materials, with a total investment of 2.3486838 billion yuan, and the construction period is about two years. Tianye Huixiang will realize the organic coupling of coal chemical industry and chlor-alkali chemical industry through the construction project, and will build a production line for the production of vinyl chloride monomer from syngas. Build a new green and efficient resin circular economy industrial chain in which syngas is produced from ethanol to ethylene and then produce ethylene polyvinyl chloride, thus promoting the green upgrading of the traditional process of chlor-alkali chemical industry.
The company's 1 million tons / year syngas to low carbon alcohol first phase project 600,000 tons / year ethylene glycol project has been put into production. In view of the talent and technical advantages of the controlling shareholder Tianye Group in the construction of ethylene glycol, on June 23, 2017, the company and the controlling shareholder Tianye Group jointly invested in the establishment of Tianye Convergence. Undertake 1 million tons / year of syngas to light alcohol phase I project 600,000 tons / year ethylene glycol project. The project creates low-carbon alcohols and low-carbon olefin products with cost advantages, and finally realizes the integrated upstream and downstream development of polyester and high-end polymer materials.
The project reached the production target in May 2021 and was transferred to formal production. As of June 30, 2021, Tianye has total assets of 8.524 billion yuan, net assets of 3.411 billion yuan, operating income of 446 million yuan and net profit of 110 million yuan from May to June in 2021.
Profit forecast and investment rating. We estimate that the EPS of the company from 2021 to 2023 will be 0.99,1.17,1.23 yuan respectively. With reference to the valuation of comparable companies in the same industry, we think that the reasonable valuation multiple is 9-11 times PE in 2021, and the corresponding reasonable value range is 8.91-10.89 yuan, which is better than that of the big city.
Risk tips. The price of the product market fluctuated and the overall domestic economic growth rate declined.
