On the evening of 1:4 / 24, the company released its annual report for 2021. The company realized revenue of 1.526 billion yuan in 2021, + 47.56% of the same period last year, and net profit of 174 million yuan, + 46.67% of the same period last year. In 2021, Q4 company realized operating income of 378 million yuan, month-on-month ratio of-3.10%, year-on-year + 42.31%, and net profit of 36 million yuan, month-on-month and year-on-year of-20.97%.
On the evening of 2:4, April 24, the company released its quarterly report for 2022. In 2022, the company's Q1 realized operating income of 395 million yuan, + 4.54% month-on-month, + 9.26% year-on-year; net profit of 42 million yuan, + 16.50%, and + 10.38% compared with the same period last year.
Comments:
The volume and price of fluorine chemical products have risen, and the performance has greatly increased in line with expectations. Benefiting from the sharp rise in the prices of sulfuric acid and hydrofluoric acid, as well as the initial formation of the company's vertically integrated industrial chain of pharmaceuticals, pesticides and new materials, the company achieved substantial growth in 2021 and steady growth in Q1 in 2022. According to iFind data, the average domestic sulfuric acid price rose 316.6% in 2021 compared with the same period last year, and the average price of hydrofluoric acid rose 22.1% in 2022. Q1 domestic sulfuric acid price rose 34.5% year on year, and hydrofluoric acid average price rose 9.84% year on year. In the context of the recovery of the hydrofluoric acid market, with the raw material support given by the completion of the 200000-ton sulfuric acid technical renovation project of Gaobao Technology, a subsidiary of Gaobao Technology, the company's basic fluorine chemical product output and sales volume increased by 82.8% and 35.5% respectively in 2021 compared with the same period last year. Revenue from basic fluorine chemical products increased by 52.7% year-on-year. In addition, also benefiting from the company's layout of the upstream sulfuric acid and other raw materials, and under the advantage of the integration of the industrial chain, the company effectively avoided the negative impact of rising sulfuric acid prices on the profitability of fluorine chemical products such as hydrofluoric acid, and promoted a substantial increase in the gross profit margin of the company's fluorine chemical products business in 2021 compared with the same period last year (9.69pct). In terms of pesticide chemical products, the company's 2.3.5.6-series products have increased foreign demand, while some of the company's pharmaceutical intermediate workshops have been transformed to produce pesticide series products, so that the company's annual pesticide chemical product output increased by 65.35% compared with the same period last year. Sales increased by 44.18%, and business income increased by 37.77%. In the electronic chemicals business, benefiting from the commissioning of high value-added BPEF products, the company's production of new materials and electronic chemicals increased by 30.50% year-on-year, sales increased by 48.13%, and revenue increased by 41.53%.
We will actively expand the production capacity of fluorine chemical products and open up growth space for the layout of lithium electricity new materials business. By the end of 2021, the company has an annual production capacity of 40,000 tons of anhydrous hydrofluoric acid, 200000 tons of sulfuric acid, 3000 tons of acetophenone series, 2020 tons of BMMI series, 1765 tons of 2pens, 1200 tons of N-methylpiperazine and 1500 tons of BPEF. At the same time, the company steadily promotes the construction of new projects and technical renovation projects. In 2021, the company's "annual output of 5000 tons of 4-difluorobenzene-difluorobenzophenone project" and "annual production of 3-difluorobenzonitrile and 500 tons of p-fluoronitrobenzene project" have been approved by EIA. The subsidiary Gaobao Science and Technology "Fluorine Fine Chemicals Series expansion Project" and the subsidiary Changxing Fluorite "Fluorite Mining extension Project of Qiekeng Mining area" have also been approved by EIA. Among them, Gaobao Technology "fluorine fine chemicals series expansion project" can add 20,000 tons / year fluorobenzene, 3000 tons / year 4-fluorobenzoyl chloride, 53,000 tons / year high purity potassium fluoride, 14,000 tons / year high purity sodium fluoride and 30,000 tons / year anhydrous hydrofluoric acid production capacity. In addition, the company is also active in the production capacity layout of new energy businesses such as sodium ion battery electrolytes and new lithium salts. Among them, Gaobao Mining, a subsidiary, is building an annual production line of fluorine electrolyte materials such as 10000 tons of sodium hexafluorophosphate and 5000 tons of difluorosulfonimide lithium in Qingliu Economic Development Zone. In addition, the company has participated in the sodium ion battery electrolyte project jointly with sodium innovative energy, Zhejiang medicine and HTC, and will make use of the patented technology advantages of sodium innovative energy in the field of sodium ion battery electrolyte. build a sodium electrolyte industry project in Hangzhou Bay Fine Chemical Park. The company's forward-looking capacity layout in the field of new energy batteries, such as sodium hexafluorophosphate and LiFSI, is expected to open up room for future development and further enhance the competitiveness of the company.
Earnings forecast, valuation and rating: the company's Q1 performance in 2021 and 2022 is in line with expectations. We maintain the company's profit forecast for 2022-2023 and add a profit forecast for 2024. It is estimated that the return net profit of the company from 2022 to 2024 is 2.01plus 2.33 million yuan, respectively, and the corresponding EPS is 0.86, 1.00 and 1.16 yuan per share, respectively. Thanks to the gradual improvement of the company's fluorine chemical industry chain and the completion of the construction of investment projects, the company will continue to develop and maintain the company's "overweight" rating.
Risk tips: product and raw material price fluctuations, capacity construction risk, downstream demand is lower than expected.
