Event
On April 28, the company released its quarterly report for 2022, showing that its operating income in the first quarter of 2022 was 329 million yuan, which was + 70.25% compared with the same period last year, and its net profit was 96 million yuan, + 35.39% over the same period last year.
Business analysis
The volume and price of the company's products have gone up. The company's core products functional auxiliaries and phenylchlorosilane achieved sales of 707 tons and 3288 tons respectively. During the reporting period, the prices of functional auxiliaries and phenylchlorosilane products were 7.76 million yuan / ton and 570,000 yuan / ton, respectively, compared with the same period last year. 26.67% respectively.
The sales volume of hexamethyldisilazane and vinyl double head is increasing, and the scope of application is constantly expanding. Hexamethyldisilazane as a stabilizer in lithium battery electrolyte can improve the electrochemical performance and cycle performance of lithium ion battery, and its application in the field of new energy is constantly broadening. with the production and sale of electronic-grade hexamethyldisilazane, the company's profit structure will continue to be optimized. In the aspect of vinyl double head, vinyl double head is mainly used as head agent to produce high temperature vulcanized silicone rubber, addition silicone rubber, silicone gel and vinyl silicone oil and other products. The company expanded production in 2021, the current production capacity of 3700 tons, the company's sales continue to grow.
The production of phenylchlorosilane is expanded and extended downstream. In terms of phenylchlorosilane, the company's phenylchlorosilane plant has undergone technical transformation, and the overall output has been increased. In the long run, the company extends from phenylchlorosilane products to phenyl resin, phenylsilicone oil and phenylsilicone rubber. With the commissioning of 20,000 tons of phenylchlorosilane downstream products, the company's industrial chain will be further extended, which is conducive to long-term growth.
Profit forecast and investment suggestion
Considering the high level of the company's products as a whole, we revised that the company's net profit from 2022 to 2024 was 464 million yuan (+ 11.5%), 580 million yuan (+ 6.61%) and 701 million yuan (newly introduced) respectively; the EPS was 2.98,3.73 and 4.51 yuan respectively, and the current market capitalization corresponding to PE was 16.4X, 13.1X and 10.84X respectively, maintaining the "buy" rating.
Risk hint
The progress of production capacity construction is not as expected; the pattern of product competition is deteriorating; the risk of product price fluctuation; exchange rate fluctuation