Andisu released the semi-annual report of 2022: the operating income in the first half of the year was 7.195 billion yuan, and the net profit of YoY+20.35%, was 869 million yuan, YoY+6.50%.
From the revenue side, the company achieved steady revenue growth, mainly due to the good growth of the two major businesses. Revenue from ① functional products increased 26% year-on-year, mainly due to a 44% increase in core business methionine sales (double-digit sales growth in both liquid and solid methionine) The revenue of ② special products was flat compared with the same period last year. Under the background of weak market demand in the first half of the year, the special products business returned to the growth track in the second quarter, mainly due to the growth in sales of digestible performance products, aquatic products and new ruminant products. At the same time, the company implemented proactive price adjustment for all products.
From the profit side, the gross profit margin has declined due to the adverse impact of the sharp rise in costs. Due to the sharp rise in raw materials, energy and transportation costs, the company's consolidated gross margin fell 4 percentage points to 31.52%.
However, the positive growth on the revenue side partially offset the negative impact on the cost side, and the company's return net profit still achieved positive growth.
The company's methionine production continues to improve and is expected to remain in the first echelon in the world. Despite the situation of new entrants and new capacity of existing manufacturers, in the context of continued market growth, Andisu successfully increased its market share of methionine from 24% to 27% between 2012 and 2017. and has continued to consolidate its existing market share in recent years. At present, the company has two production platforms, located in Europe and Nanjing, China. As for the ① plant in Europe, the European production platform expansion project has successfully increased its annual production capacity by 80,000 tons and has achieved full capacity production. At present, it continues to improve the continuity of its production operations. ② Nanjing plant in China, the existing Nanjing plant achieved a high degree of production stability after 45 days of overhaul, and quickly entered the state of full production. The second phase of the project 180000 tons of liquid methionine capacity has entered the full-speed commissioning stage, is expected to start trial operation next month, it is expected that the project will form a synergy with the existing Nanjing plant, reflecting stronger economies of scale advantages. In addition, in order to meet the growing customer demand, the company has launched a feasibility study on the next liquid methionine production platform. We expect the company to further expand its production capacity through continuous industrial investment and continue to maintain its leading position in the global first echelon in the future.
We will actively promote the "two pillars" strategy and open up room for long-term growth. In recent years, the company has been actively implementing the "two-pillar" strategy, that is, to speed up the development of special business while continuously consolidating the leading position in the methionine industry.
As the company's second business pillar, the company is actively developing special products business, and the proportion of special products business in total revenue has increased to about 24% in 2021. The company has carried out special product capacity expansion and optimization projects in Europe and China to support business growth, optimize production layout, enhance cost competitiveness and sustainability, and open up room for long-term growth.
The company is a leader in the global animal nutrition industry and the second largest methionine producer in the world, which can produce both solid and liquid methionine. At the same time, the company actively implements the "two-pillar" strategy to consolidate its leading position in the methionine industry and accelerate the development of special business.
Corporate profit forecast and investment rating: we maintain the company's profit forecast for 2022-2024, that is, net profit for 2022-2024 is 17.09,19.19 and 2.165 billion yuan, respectively, and the corresponding EPS is 0.64,0.72 and 0.81 yuan, respectively. Maintain the "highly recommended" rating.
Risk tips: product prices decline; new production capacity in the industry is put in too fast; demand in the feed industry is declining.