Steady growth in performance: the company released the annual report for 21 years and the quarterly report for 22 years. The company achieved revenue of 3.699 billion in 21 years, + 14.62% in the same period last year, 450 million in Q1 in 22 years, and 1.2 billion in Q1 in 22 years compared with the same period last year. The net profit in Q1 was 143 million yuan, + 8.94% in the same period last year, and the performance maintained steady growth.
Under the fluctuating market, the advantage of integration is significant: the price of pesticide raw materials has risen in the past 21 years, and the demand for agricultural products brought about by the rise in the price of staple grain has increased. The prices of domestic pesticide products have shown an upward trend, and Q3 has skyrocketed in the short term because of policies such as double control of energy consumption. In the middle of 21 years, the price index of pesticides and fungicides in Nonglihua has increased by 58% and 49%.
Since the beginning of 22 years, pesticide prices have declined significantly. As the company's pesticide product structure covers preparations and crude drugs, and continues to deepen the integration strategy of preparations, crude drugs and intermediates, its pesticide sector has a good ability to resist fluctuations in the crude drug industry, and the overall profit level is relatively stable. 22Q1 comprehensive gross profit margin of 29.41% is almost the same as that of 21 years, and there is 0.82pct growth on a month-on-month basis.
New product development capability enabling growth: the company has strong strength and initiative in the development and layout of new raw drug products, and the project / fixed assets under construction are in the forefront of the industry, bringing continuous growth for the company. For example, the company's newly put into production fungicide prothionazole has a very strong monopoly pricing due to very few registered peers in China, and the company also plans to expand production on this highly competitive product, including Shandong Hailier 3000 tons / year and Hengning Phase II project capacity of 8000 tons / year, fully transforming the benefits of new product development. In addition, the company also has an independently created pesticide variety "1119" is expected to be listed, and the first and second phases of Hengning base also have continuous new product release and follow-up project reserves. among them, the first phase of Hengning crude drug and intermediate project is scheduled to be completed in the first half of this year. The integrated layout of Hengning project superimposed a strong new product release, which will become an important carrier for the company's future performance growth.
Under the background of the increase in the price of raw materials and the relative pressure of downstream products, because the layout of pesticide products covers preparations and raw drugs, the company can obtain the benefits of the industrial chain to a greater extent. considering that the price of raw materials has been adjusted but still high, we adjust the EPS per share of the company to 2.06,2.60,3.08 yuan in 22-24 (the original forecast is 2.07,2.63 yuan in 22-23), according to the comparable company's 22-year 15 times earnings ratio. Give the target price 30.90 yuan and maintain the buy rating.
Risk hint
New capacity investment is not as expected; end-market development is not as expected; product and raw material prices fluctuate.