Event
On October 28, the company released a report for the third quarter of 2021 that the company realized operating income of 633 million yuan in the first three quarters of 2021, + 75.9% year-on-year, and net profit of 219 million yuan, + 85.2% compared with the same period last year. Among them, the operating income in the third quarter was 219 million yuan, + 85.2% over the same period last year, and the net profit was 82.6 million yuan, + 124.2% compared with the same period last year, and the performance was in line with expectations.
Business analysis
The volume and price of the company's products have risen. The company's core products functional auxiliaries and phenylchlorosilane achieved sales of 7483 tons and 3035 tons respectively; during the reporting period, the prices of functional auxiliaries and phenylchlorosilane products were 5610,000 yuan / ton and 5.45 million yuan / ton, respectively, compared with the same period last year.
The sales volume of vinyl double head and hexamethyldisilazane has increased, and the scope of application has been broadened. In terms of vinyl double heads, the company originally had a production capacity of 700t, but the newly built capacity of 3000 tons was put into operation in the first quarter of 2021. With the gradual climbing of production capacity, the company's sales continued to grow. At present, the company breaks through the electronic grade hexamethyldisilazane technology, the value of electronic grade hexamethyldisilazane is more than 3 times that of ordinary hexamethyldisilazane, and the company continues to sell downstream customers. with the expansion of electronic-grade hexamethyldisilazane, the company's profit structure will continue to be optimized.
The production of phenylchlorosilane is expanded and extended downstream. In terms of phenylchlorosilane, the company's phenylchlorosilane plant has undergone technical transformation, and the overall output has been improved. in addition, the company's phenylchlorosilane plant will further expand production and consolidate its competitive advantage. In the long run, the company extends from phenyl chlorosilane products to phenyl resin, phenyl silicone oil and phenyl silicone rubber. According to the company announcement, 20,000 tons of phenylchlorosilane downstream products are expected to be completed in August 2022. Help the company to further expand to the lower reaches of the larger market space, conducive to long-term growth.
Profit Forecast and Investment suggestion
Taking into account the upward price of the company's products, we revise that the net profit of the company from 2021 to 2023 is 3.09,4.16 and 544 million yuan respectively (the previous value is 2.98,3.8 and 490 million yuan respectively); the EPS is 1.98,2.68 and 3.50 yuan respectively, and the current market capitalization corresponding to PE is 31.7X, 23.5x and 18x respectively, maintaining the "buy" rating.
Risk hint
The progress of production capacity construction is not as expected; the pattern of product competition is deteriorating; the risk of product price fluctuation; exchange rate fluctuation