The company released the third quarter report of 2021, achieving operating income of 633 million yuan (yoy + 75.92%) in the first three quarters of 2021; net profit of 229 million yuan (yoy + 87.65%); and deducting non-return net profit of 209 million yuan (yoy + 83.16%). Among them, the operating income in the third quarter was 219 million yuan (yoy+85.24%), the net profit was 83 million yuan (yoy+124.18%), and the non-return net profit was 76 million yuan (yoy+ 166.94%). The gross profit margin of Q3 company in 21 years was 41.94%, an increase of 1.73 pct and 0.80 pct compared with the same period last year. The performance is in line with expectations, and the increase in downstream demand leads to a high increase in the company's performance.
The boom in downstream demand has led to a month-on-month rise in product prices. Driven by the demand of new energy vehicles, semiconductors, LED, health care and other downstream areas, the company's products continue to be prosperous. The average price of functional auxiliaries is 57574 yuan / ton (qoq-0.47%) in the third quarter of 2021, which is the same as that in the second quarter. The average price of phenylchlorosilane products in the third quarter of 2021 is 61646 yuan / ton (qoq+9.05%). The company produced 7483.18 tons of functional auxiliaries in the first three quarters of 2021, of which Q3 functional auxiliaries produced 2187.29 tons (qoq-23.30%). The sales volume of functional additive Q3 is 2298.80 tons (qoq-7.39%). Phenylchlorosilane produced 3035.16 tons in the first three quarters, of which Q3 phenylchlorosilane produced 1104.33 tons (qoq+10.27%). Sales of phenylchlorosilane Q3 are 792.60 tons (qoq+13.10%).
In the investment of phenylchlorosilane and downstream deep processing projects continue to promote, extend downstream industries, and create the advantages of the whole phenyl industry chain. After the technical transformation, the output of the existing equipment of phenylchlorosilane has been increased, while the second phase of the company's annual production capacity of 10000 tons of phenyl is in progress, which is expected to be completed in August next year, and the phenyl silicone resin project and phenyl intermediate project are also progressing steadily. The new production capacity of phenyl project will further consolidate the company's existing competitive advantage in phenyl products and provide corresponding support for downstream deep processing. At the same time, the downstream deep processing items extend the types of products from the existing phenyl chlorosilane to other downstream products such as phenyl silicone rubber, phenyl resin, phenyl intermediate, phenyl silicone oil, etc., in order to build the whole industry chain of phenyl silicone, scale and integration to enhance the company's comprehensive competitiveness and create the company's future growth space.
Maintain earnings forecasts and maintain "buy" ratings. It is estimated that the revenue from 2021 to 2023 will be 955 million yuan, and the net profit will be 2.97 billion yuan, and the corresponding PE will be 33X, 26X and 20x, respectively, and the "buy" rating will be maintained.
Risk tips: product prices fall; projects under construction are not as expected; demand decline risk.