Main points of investment
Event: Chuanheng shares released its semi-annual report for 2022, with operating income of 1.587 billion yuan during the reporting period, an increase of 57.77% over the same period last year; net profit of 371 million yuan belonging to shareholders of listed companies, an increase of 254.08% over the same period last year; and net profit of 371 million yuan, an increase of 311.65% over the same period last year. According to the latest total share capital, the diluted earnings per share is 0.74 yuan and the net operating cash flow per share is 0.0065 yuan.
In the single quarter, 2022Q2 achieved operating income of 978 million yuan, an increase of 58.18% over the same period last year, an increase of 37.78% over the previous quarter; realized net profit of 267 million yuan, an increase of 277.75% over the same period last year, and an increase of 60.94% over the same period last year; realized net profit of 269 million yuan, an increase of 306.31% over the same period last year, and an increase of 162.63% over the previous quarter; EPS was equivalent to 0.53 yuan in a single quarter.
Maintain the investment rating of "prudent overweight". Chuan Heng Co., Ltd. is a domestic phosphorus chemical industry technology leader, the company in the main products fire grade monoammonium phosphate and calcium dihydrogen phosphate market share occupies a leading position in the domestic industry. The company has upstream phosphate rock resources, the current product line to expand downstream to purify phosphoric acid, iron phosphate, lithium iron phosphate and lithium hexafluorophosphate and other products, cut into the new energy sector. The company is building and planning a large number of projects, and the introduction of new energy related companies for technical cooperation. With the gradual landing of the company's planned projects, the company has sufficient growth and its future performance can be expected. Overall, the company's main product business is stable and good, while the products extend to the new energy sector, equipped with phosphorus resources to further strengthen the company's competitive advantage in the iron phosphate industry. We raised the company's profit forecast and introduced 2024 EPS, which is expected to be 1.75,2.43,3.56 yuan respectively in 2022-2024, maintaining a "prudent overweight" rating.
Risk tips: the risk that the company's project construction is slower than expected; the risk of raw material price fluctuations; the risk that downstream application demand is lower than expected.