Event description
In the first quarter of 2022, the company achieved revenue of 4.24 billion yuan (year-on-year + 12.5%, month-on-month + 2.0%), attributable net profit of 210 million yuan (year-on-year + 15.2%, month-on-month + 249.4%), and non-net profit of 180 million yuan (year-on-year + 10.3%, month-on-month + 840.4%).
Event comment
Fine chemicals: the price of m-cresol has rebounded and menthol is expected to contribute to the increase. Haihua Technology, a subsidiary of the company, is mainly engaged in the "m-cresol-thymol-menthol" industry chain, taking the lead in realizing the domestic substitution of m-cresol, and vertically expanding the menthol industry chain. 2022Q1, the price of m-cresol is still high, and the average import price of cresol reached US $7.30 / kg in February, an increase of 30.4% over the same period last year, which is expected to drive performance growth. Looking forward to 2022Q2, the price of intercompany cresol is high, which is expected to shift the pressure on the cost side and contribute to performance growth. In 2022, the company's new 3000 tons / year menthol and 10000 tons / year cresol are expected to be gradually put into production, contributing to an important increase; on the other hand, the company has built 15000 tons / year BHT capacity and planned 100,000 tons / year p / o chlorotoluene production capacity, horizontal expansion will inject growth momentum for the future. From a long-term point of view, the company will further deepen the layout of the fine chemical sector, and Haihua Technology will build an important performance growth engine.
Agricultural materials: fertilizer prices rise, the performance of the plate is eye-catching. The prices of 2022Q1, urea (Hualu Hengsheng small particles), MAP (55% of Sichuan Jinhe), potassium chloride (60% of Qinghai Salt Lake) and compound fertilizer increased by 31.9%, 49.5%, 76.2% and 42.1% respectively compared with the same period last year. Looking ahead to 2022Q2, the prices of urea (Hualu Hengsheng small particles), MAP (55% of Sichuan Jinhe), potassium chloride (Qinghai Salt Lake) and compound fertilizer (as of April 24, 2022) were 2909.6, 3541.7, 3900.0 and 3490.4 yuan / ton, respectively, up 7.6%, 14.6%, 6.3% and 7.0%, respectively. Fertilizer prices rose month-on-month in the second quarter, which is expected to drive the company's performance to maintain growth. In 2022, the company's 150,000 tons / year potassium sulfate compound fertilizer and Jiangxi ecological second phase compound fertilizer production line will be completed and put into production, the agricultural material plate "integration of industry and trade" layout, the new capacity will drive steady growth.
Integrate phosphate rock resources and distribute phosphate rock-phosphate fertilizer integration. The company has a production capacity of 200,000 tons of monoammonium phosphate per year. At present, the company's phosphate rocks are all mined outside. After the acquisition of 11.29% stake in Zhongmeng Phosphate Industry, the company is expected to further enhance the upstream phosphate ore resource distribution capacity and enhance cost advantage. According to the "address report of Supplementary detailed investigation of Baiyan Phosphate Mine in Weng'an County, Guizhou Province", the reserves of Baiyan Phosphate Mine can reach 95 million tons and have outstanding resource advantages. Other plates, in 2022, the company's 150,000 tons / year potassium sulfate compound fertilizer, Jiangxi ecological phase II compound fertilizer production line will be completed and put into production, the agricultural material plate "integration of industry and trade" layout, new production capacity will drive steady growth.
Senior executives increase their holdings of stocks and buy back their own funds, demonstrating confidence in future development. Some directors, supervisors and senior managers of the company intend to increase their holdings of a total of 1 million shares of the company through the trading system of the Shenzhen Stock Exchange within six months from May 5, 2022. The company intends to use its own funds to buy back shares, the total repurchase amount shall not be less than RMB 50 million yuan (inclusive) and not more than RMB 100 million yuan (inclusive), and the repurchase price shall not exceed RMB 16 yuan per share (inclusive).
The company is a leading enterprise in the field of agricultural material circulation in China, tamping the integration of industry and trade, and laying out the whole industry chain of chemical intermediate-menthol. With the company menthol and other projects gradually put into production, the company's performance is expected to achieve high-speed growth. It is estimated that the 2022-2024 attributable net profit will be 7.5,10.4 and 1.41 billion yuan respectively, maintaining the "buy" rating.
Risk hint
1. Risk of technology diffusion
2. The risk of industrialization delay.
