Events:
On April 22, 2022, the company announced that it realized revenue of 6.502 billion yuan (YOY+70.86%,QOQ+14.88%) and net profit of 1.225 billion yuan (YOY+336.71%,QOQ+16.33%) in the first quarter of 2022.
Comments:
The performance growth in the first quarter is in line with expectations, and the company glyphosate is expected to continue to benefit from Gaojing. During the reporting period, the company's main products glyphosate and organosilicon were at historical highs, and the prices of main raw materials such as yellow phosphorus, glycine, monochloromethane, liquid alkali and industrial silicon also rose sharply. The company continues to improve under the circular economy system of strengthening the supporting advantages of upstream industrial silicon, vigorously developing the terminal strategy and the development of phosphorus and silicon chloride. As of April 21, 22, the price of glyphosate was 65,000 yuan / ton, and the price difference between glyphosate and glycine was 538,000 yuan / ton. We believe that the high food boom may continue, and the company, as a glyphosate leader, is expected to continue to benefit.
The raw materials in the upper reaches of the silicon industry chain are extended, and the terminal high value-added products are carried out with great strides. Upstream, the company has an industrial silicon production capacity of 154,000 tons / year, and a total of 165,000 tons / year industrial silicon production capacity is under construction in Yanjin, Yunnan and Pingwu, Sichuan. It is expected that the annual industrial silicon production capacity will exceed 300000 tons by the end of 2023. Downstream, the company continues to expand the terminal layout, focusing on investing in Zhejiang Lide 30,000 tons / year photovoltaic glue project, Hangzhou Chongyao 24,000 tons / year special silicone oil project, Xinanmaitu 25,000 tons / year high performance silicone material project, Kaihua synthetic 300,000 tons / year special silicone material project, among which Hangzhou Chongyao project and Zhejiang Lide project will be put into production in the first and second half of 2022 respectively Will further increase the company's profits.
Endogenous + epitaxial tamping "herbicide expert" industry brand. From an endogenous point of view, the company has expanded the non-selective herbicide glyphosate. The first phase of 3000 tons / year glyphosate already has the conditions for trial production. The matching raw material diethyl ester project is expected to be completed by the end of 2022. The new process of 3000 tons / year for the second phase of glyphosate is being pilot-scale, or the cost will be reduced by 30%. From the extension point of view, the company controls Hefei Xingyu, cuts into the field of selective herbicides, signs strategic cooperation agreements with Huabang Health and Yingtai Biology, actively distributes agrochemical and transgenic fields, and optimizes the layout of the company's products and industries to achieve win-win cooperation.
Focus on the value track, the company actively layout high-growth business. Based on "chlorine, silicon and phosphorus", the company accelerates the business breakthrough of new materials and solutions for new races such as photovoltaic, power batteries and energy storage. at present, the electrolyte and silicon-carbon negative electrode project is in the pilot stage. The company speeds up the construction of a new flame retardant new material project with an annual output of 142000 tons, optimizes the structure of the company's flame retardant products, and ensures the company's new vitality for future development.
Investment suggestion: the company is expected to make a net profit of 28.30, 065, 3.269 billion yuan in 2024, corresponding to a PE of 10.97, 10.13, 9.50 respectively, with a "recommended" rating for the first time.
Risk tips: the progress of the project is not as expected, the price of raw materials has risen sharply, and the competition pattern has deteriorated.