On the evening of 1:4, April 25, the company released its 2021 annual report. In 2021, the company achieved revenue of 1.252 billion yuan, an increase of 23.83% over the same period last year, and a net profit of 166 million yuan, an increase of 21.15% over the same period last year. Among them, Q4 achieved revenue of 358 million yuan in 2021, an increase of 17.85% over the same period last year and 34.90% month-on-month growth; the net profit returned to the home was 57.51 million yuan, up 154.20% from the same period last year and 134.86% from the previous year.
On the evening of 2:4, the company released its quarterly report for 2022. In 2022, Q1 Company achieved revenue of 423 million yuan, an increase of 35.84% over the same period last year and 18.08% month-on-month growth. The net profit returned to its home was 54.78 million yuan, an increase of 43.22% over the same period last year, down 4.76% from the previous year.
Light initiator production and sales volume, the company's performance has grown steadily. By the end of 2021, the company's three major subsidiaries, Shandong Jiushi, Changzhou Jiusi and Hunan Jiushi, had a total production capacity of 18825 tons / year of photoinitiators and related products, an increase of 31.4% compared with the end of 2020. Benefiting from this, the company's production and sales of photoinitiators increased significantly in 2021. In 2021, the company's photoinitiator output reached 17783 tons, an increase of 30.0% over the same period last year, and sales reached 20351 tons, an increase of 19.77% over the same period last year. Driven by a significant increase in production and sales, the company's photoinitiator business revenue increased by about 23.5% in 2021 compared with the same period last year. In addition, the gross profit margin of photoinitiator products rebounded slightly in 2021, and the gross profit margin increased by 2.52pct compared with the same period last year. In 2022, the sales unit price of Q1 company's products increased significantly compared with the same period last year. Under the sales strategy of "steady price increase in quantity", the company's operating income increased steadily as a whole. At the same time, Hongrun Chemical, which was acquired by 22Q1 at the end of 2021, was officially included in the scope of the consolidated statement, which played a positive role in the company's revenue growth.
Continue to expand the production capacity of photoinitiator, layout photoresist related materials to accumulate growth power. On March 15, 2022, part of the workshop of the series of photoinitiators and intermediates with an annual output of 9250 tons invested by the company's subsidiary Inner Mongolia began to be put into operation step by step. In addition, the company Huaihua Jiuyuan annual production capacity of 24000 tons of photoinitiator project and Shandong Jiuri annual production capacity of 32300 tons of light-curing materials and water purifying agent construction project is also in an orderly progress. After the completion of the above project, it will further expand the production capacity of the company's photoinitiators and light-curing materials, and enhance the company's competitive strength in the light-curing industry chain. In addition, the company's subsidiary Dajing new material layout has a thousand-ton photoresist and supporting reagent project, and the Dazheng information layout has an annual production capacity of 600 tons of special photosensitizer for microelectronic photoresist. Among them, the photosensitizer project is expected to be completed in May 2022, and the photoresist and supporting reagent project is expected to be completed and put into production in December 2023. On the basis of continuously tamping the leading position of photoinitiator industry, the company further extends to the field of electronic chemicals to accumulate sufficient power for the company's future growth.
Earnings forecast, valuation and rating: the company's 2021 performance slightly exceeded expectations, 2022Q1 performance in line with expectations.
We maintain the company's profit forecast for 2022-2023 and add to the 2024 profit forecast. It is estimated that the company's net profit from 2022 to 2024 will be 2.38x351x544 million respectively. As a leader in the photoinitiator industry, the company continues to expand product production capacity, consolidate the industry position, and further extend to electronic chemicals, which is expected to open up the growth space and maintain the company's "overweight" rating.
Risk tips: product and raw material price fluctuations, capacity construction is not as expected, product verification risk.
