The company released its annual report for 2021 and quarterly report for 2022, with revenue of 3.699 billion yuan in 2021, an increase of 14.62% over the same period last year, a net profit of 450 million yuan, an increase of 10.59%, and a deduction of 423 million yuan, an increase of 15.79% over the same period last year. In the first quarter of 2022, revenue reached 1.2 billion yuan, up 6.57 percent over the same period last year; net profit returned to the mother was 143 million yuan, up 8.94 percent over the same period last year; and non-139 million yuan was deducted, an increase of 8.14 percent over the same period last year. The company's performance has maintained steady growth.
The volume and price of the main products are rising, and the pesticide market is stable and improving. The average price of the company's main pesticide products has increased in 2021. According to Zhongnong Lihua, the average annual prices of imidacloprid, acetamiprid, methamidinium salt, thiamethamide, thiazide, and pyrazole in 2021 are 16, 15, 102, 14, 11, and 180,000 yuan per ton, respectively, up 50%, 26%, 5%, 0%, 18% and 2% year-on-year. At the same time, the company still achieved an increase in the production and sales of pesticide products under the condition of overhaul and technical reform, with an output of 44700 tons in 2021, an increase of 8.72 percent over the same period last year, and sales of 46400 tons, an increase of 14.64 percent over the same period last year. In the first quarter of 2022, the prices of most pesticides gradually fell, and the decline of raw materials was more obvious, so we are optimistic that the performance brought about by stable pesticide prices in the second quarter will continue to improve.
Hengning project continues to move forward, and plans to further expand the production capacity of propylthiazole. The company's future product category extension mainly depends on the Hengning project. At present, the first phase of Hengning is expected to be completed in the first half of 2022 and the second phase is expected to be completed in 2024. In addition, the company issued an announcement to build a new prothiazole crude drug production capacity of 3000 tons and other crude drug products. At present, Shandong Haillier Chemical has a design capacity of 2000 tons of albendazole, superimposed with the planned design capacity of 8000 tons of Hengning Phase II, and the company's future production capacity of prothionazole is expected to reach 13000 tons. We believe that the company to step up efforts to develop probthiazol, on the one hand, to seize the market opportunity, on the other hand, by expanding the scale to improve the cost advantage.
Update 2022, 2023, add 2024 profit forecast, maintain the "buy" rating. At present, the price of the company's main pesticide has temporarily stabilized. We update 2022, 2023 and add 2024 profit forecasts. It is estimated that the company's operating income in 2022-2023 will be 45.72,62.96 and 8.098 billion yuan respectively (previous 2022-2023 is 48.25 yuan and 5.496 billion yuan respectively). The net profit of returning to the mother is 6.27,7.75 and 893 million yuan respectively (previously 6.87 yuan and 840 million yuan respectively in 2022-2023) The corresponding PE is 11X/9X/8X, maintaining the "buy" rating.
Risk hint: the product promotion is not as expected and the project launch is not as expected.