In the first three quarters of 2021, the company achieved revenue of 3.068 billion yuan, year-on-year + 97.80%, net profit of 625 million yuan, + 171.41%, net profit of 618 million yuan, + 183.09%, of which Q3 realized revenue of 1.077 billion yuan, year-on-year + 61.54%, month-on-month + 2.96%, net profit of 195 million yuan, + 58.17%, deduction of non-return net profit of 193 million yuan, + 65.65% It is mainly due to the increase in sales revenue and gross profit margin of major products. The net cash flow of the company's operating activities in the first three quarters was + 132.35% compared with the same period last year, which was due to the enhancement of the company's profitability and the increase in net cash inflows.
The sharp increase in product prices promotes income growth, and the performance of flame retardants and paint auxiliaries Q3 is eye-catching. The company's sales of flame retardants in the first three quarters were 2.47 billion yuan, + 108% compared with the same period last year, 490 million yuan for amine auxiliaries and catalysts, and 110 million yuan for paint auxiliaries, + 280% compared with the same period last year. In the third quarter, the sales of flame retardants were 33000 tons, + 16.4% compared with the same period last year, + 5.7% compared with the same period last year, the price was 25612 yuan / ton, + 44.3% compared with the same period last year, and the sales volume of amine auxiliaries and catalysts was 6000 tons, with a price of 26840 yuan / ton, compared with the same period last year. Sales of paint auxiliaries are 3000 tons, year-on-year + 66.8%, month-on-month + 2.6%, price 16592 yuan / ton, year-on-year + 49.9%, month-on-month + 3.3%, all products maintain the business cycle.
Double control of energy consumption has pushed up costs and continued to increase investment in research and development. The company's gross profit margin in the first three quarters of 2021 was 36.21%, year-on-year + 4.27 pct, net profit rate 20.36%, year-on-year + 6.20 pct, of which Q3 gross profit margin was 34.35%, net profit rate 18.14%, month-on-month decline, mainly due to the increase in raw material prices under double control of energy consumption, in which the average purchase price of phosphorus oxychloride was + 18.21%, and the average purchase price of n-Kui acid was + 18.86%. The company's R & D expenditure in the first three quarters was 91 million yuan, + 31.33% compared with the same period last year, due to increased R & D investment in new 5G flame retardant materials, biodegradable amino acid surfactants and so on.
The EIA of Shandong project has passed three times of EIA, and the construction is expected to start, and the growth of the functional new material platform is expected. The Binhai Branch of Weifang Ecological and Environmental Bureau has publicized the approved company's "integrated production project of 319300 tons of functional new materials per year". After passing the project, the construction is expected to start gradually, and the long-term growth certainty of the company will gradually fall to the ground.
Maintain earnings forecasts and maintain "buy" ratings. Due to the local epidemic, the company was affected for a short time in the third quarter. The future of the company's core product BDP boom can be long, amine promoters and catalysts and paint production capacity ushered in a period of accelerated release, Shandong project relay growth, 2021-2023 revenue is expected to be 35.50pm 42.94pm 5262m, return to the mother net profit of 9.02pm 103x1322 million, corresponding to PE is 1210Universe, reiterate the "buy" rating.
Risk tips: raw material price fluctuation risk, exchange rate fluctuation risk, safety and environmental protection risk.
