Overview of events
The company released the 2021 annual report, during the reporting period, the operating income was 23.469 billion yuan, an increase of 17.88% over the same period last year, and the net profit returned to the mother was 1.133 billion yuan, an increase of 91.06% over the same period last year. At the same time, it is proposed to distribute a cash dividend of 2.45 yuan (including tax) for every 10 shares to all shareholders on the basis of 1865273596 shares.
In the fourth quarter alone, the company achieved revenue of 5.412 billion yuan and net profit of 192 million yuan. The company released its quarterly report for 2022. During the reporting period, the company achieved operating income of 5.38 billion yuan, down 4.26% from the same period last year, and realized a net profit of 349 million yuan, down 1.90% from the same period last year.
Analysis and judgment:
The performance is off to a good start in the 14th five-year Plan, and the leading position in the industry has been further consolidated. In 2021, the company achieved an operating income of 23.469 billion yuan, an increase of 17.88% over the same period last year, and a net profit of 1.133 billion yuan, an increase of 91.06% over the same period last year. During the reporting period, the global economy remained in the doldrums, the domestic epidemic situation repeatedly occurred, and the prices of raw materials and auxiliary materials rose. The company overcame the influence of unfavorable factors, continued to optimize its product structure, promoted business upgrading and development, consolidated its leading position in the industry, and achieved a historic breakthrough in business performance of "exceeding the same period, history, budget and expectations". It achieved excellent results of operating income exceeding 20 billion yuan, net profit exceeding 1 billion yuan and ROE exceeding 10 percent. Ushered in the "14th five-year Plan" great development off to a good start. Specifically, in terms of fuel ethanol and its by-products, during the reporting period, revenue reached 11.151 billion yuan, up 15.94% over the same period last year; for starch and its by-products, revenue reached 4.352 billion yuan during the reporting period, up 4.78% over the same period last year; for sugars, revenue reached 3.447 billion yuan, up 37.34% from the same period last year; for monosodium glutamate and its by-products, revenue reached 1.234 billion yuan, up 10.25% from the same period last year In terms of citric acid and its salts and by-products, revenue reached 1.136 billion yuan, up 60.30% from the same period last year, while revenue from oil reached 761 million yuan, up 3.93% from the same period last year.
The leading position of corn deep processing is stable, and the profitability of cost control is improved. The company is a leading domestic corn processing enterprise. during the reporting period, due to the influence of multiple factors, the price of corn and other grain is high. In order to prevent and control the risk of sharp price fluctuations in the corn market, the company dynamically adjusts the purchasing strategy of raw materials, and builds inventory at a low price at the initial stage of corn market. reduce inventory in the high price period, cash in inventory increment At the same time, closely follow the price relationship between foreign cassava and domestic corn, imported more than 200000 tons of cassava, effectively reduce the cost of raw materials, corn prices are high during the reporting period, but the company's overall gross profit margin increased 0.73pct to 11.19%. In addition to raw material costs, the company also promoted cost reduction through refined technology. During the reporting period, starch sugar enterprises promoted high-concentration liquefaction and high-concentration saccharification technology, reducing unit cost by more than 30 yuan per ton, and through energy-saving technology transformation, the unit steam consumption was reduced by 34% and 50%. In addition, the company's sales of special products also achieved rapid growth, during the reporting period, the focus on promoting "small special new" syrup sales of more than 100000 tons, an increase of more than 40% over the same period last year. We believe that the company is the leading domestic corn processing enterprise, has occupied a considerable market share, while the company through raw material procurement control, sophisticated technology to reduce costs, through upgrading products to meet customer personalized, differentiated needs, is expected to further open the market, enhance the company's overall profitability.
"double carbon" promotes the explosive growth of the industry, and the business of degradable materials is promoted in an orderly manner. With the increasing concern of the "double carbon" policy and the concept of green development, the demand for eco-environmentally friendly biodegradable materials is increasing rapidly, and the industrial prospect is broad. The company's biodegradable materials business mainly includes PHA, polylactic acid, polylactic acid modified materials and polylactic acid products. The company actively responds to the relevant policies of the country to promote the treatment of plastic pollution, vigorously develops and reserves the related technology of biodegradable materials, and has a mature production line of polymerization, modification and polylactic acid products. During the reporting period, in order to enhance the integrity, systematicness and economy of the biodegradable materials industry, the company started the construction of a project with an annual output of 30,000 tons of lactide in order to break through the whole industry chain of polylactic acid, and established COFCO Biomaterials (Yushu) Co., Ltd. on December 20, 2021, to promote the project construction process in an orderly manner; second, in August 2021, the company began to build a thousand-ton PHA production plant in Yushu. On the whole, the 1000-ton PHA project will be commissioned and put into production in the first half of this year, and then further optimize the process to make the products meet the market demand; the company's 30,000-ton lactide project is also progressing smoothly, mainly in the negotiation and selection of imported core equipment, as well as the overall safety assessment and environmental assessment procedures. We believe that under the background of the national 3060 carbon peak carbon neutralization, the company's biodegradable materials business has ushered in a policy dividend period. in the future, with the project on the ground and put into production, it is expected to contribute new performance growth points and thicken the company's profits.
Investment suggestion
Our analysis: (1) in the aspect of corn deep processing, the position of the company in the industry is further consolidated, and the advantages of the head enterprise will be further revealed; (2) in terms of bioenergy business, the rise in oil prices is good for the business development of the company. (3) in terms of biodegradable materials, the "double carbon" strategy promotes the explosive growth of the industry, and the company's related business faces broad market prospects. based on this, we raised the company's 22-23 operating income from 285.06 billion yuan to 29.801 billion yuan, with an increase of 24-year operating income of 37.862 billion yuan. Increase the 22-23 year return net profit from 1.773 billion yuan to 1.486 billion yuan, increase the forecast 24-year return net profit to 2.23 billion yuan, increase the 22-23 year EPS from 0.79 shock 0.95 yuan to 0.80 pound 0.97 yuan, the new forecast 24-year EPS is 1.20 yuan, and the stock price on April 29, 2022 is 8.21 yuan, corresponding to the PE of 22-23-24, respectively, maintaining the "buy" rating.
Risk hint
COVID-19 epidemic risk, oil price fluctuation risk, corn price increase too big impact.