Phosphorus chemical industry leader, the industrial chain continues to expand. The company's main business is the phosphorus chemical industry, after years of development, the company has formed a phosphorus chemical circular economy industry group of mining, phosphate production, phosphorus chemical technology innovation, development and utilization of associated resources, phosphogypsum building materials, phosphorus nutrition technical services and product sales.
At present, the company has phosphate rock production capacity of 2.5 million tons / year, calcium dihydrogen phosphate production capacity of 360,000 tons / year, monoammonium phosphate capacity of 170,000 tons / year; in the construction of phosphate rock production capacity of 7.5 million tons / year, calcium dihydrogen phosphate production capacity of 150,000 tons / year, iron phosphate capacity under construction and planning a total of 1.6 million tons / year.
2022H1 realized a net profit of 371 million yuan after deducting non-profit, an increase of 311.65 percent over the same period last year. The company released the 2022H1 performance report, with revenue of 1.587 billion yuan during the reporting period, an increase of 57.77% over the same period last year; net profit belonging to shareholders of listed companies was 371 million yuan, an increase of 254.08% over the same period last year; net profit after deducting 371 million yuan, up 311.65% over the same period last year; and basic earnings per share was 0.7529 yuan. The main reasons for the performance growth in this period are as follows: the increase in the unit price of feed-grade calcium dihydrogen phosphate, monoammonium phosphate, phosphate rock and the increase in phosphoric acid sales.
We will increase investment in Hengchang New Energy and accelerate the landing of new energy projects. The company announced that subsidiaries Hengda Mining (51% owned by Sichuan Heng) and Tianyi Mining (49% held by Sichuan Heng) plan to jointly increase capital in Hengchang New Energy, with a total capital increase of 1.222 billion yuan, of which Hengda Mining subscribed to increase capital by 1.099 billion yuan and contributed in the form of currency; Tianyi Mining subscribed to increase capital by 123 million yuan and contributed at the price of land use rights. After the capital increase, the registered capital of Hengchang New Energy is 1.226 billion yuan, Hengda Mining holds 90%, and Tianyi Mining holds 10%. We believe that this capital increase will meet the construction capital needs and land use needs of Hengchang new energy project respectively, which is conducive to the smooth promotion of project construction.
Join hands with Xin Wanda and Guoxuan to build lithium hexafluorophosphate to further enhance the added value of the industrial chain. The company announced that the company and its holding subsidiary Hengda Mining (Sichuan Heng holding 51%, Xin Wanda 49%) intend to set up a new joint venture subsidiary with Guoxuan Group to jointly invest in lithium hexafluorophosphate research and development, production, sales and technical services.
The registered capital of the joint venture company is 300 million yuan, Hengda Mining holds 52%, Guoxuan Group holds 34%, and the company holds 14%. We believe that through the establishment of joint venture subsidiaries, we can give full play to the respective advantages of all parties, deepen the layout of the new energy industry chain, and further enhance the added value of the industry chain.
Join hands with Jinyuan Zhongke and Xinwangda to lay out overseas lithium mines to further enhance the upstream lithium resource guarantee capacity. The company announced that the company established a joint venture with Jinyuan Zhongke and Xin Wanda to establish a shareholding subsidiary Jin Hengwang, with a registered capital of 350 million yuan, Jinyuan Zhongke holding 51%, Xinwanda holding 35%, and the company holding 14%. Up to now, Jin Hengwang has confirmed its intention to acquire Goldinka Energy S.A. The purchase price of the Laguna Caro mining right project is 27 million US dollars. We believe that the integration of lithium resources around the Argentine Salt Lake through joint investment will help to enrich the company's industrial chain structure and provide upstream lithium resources for the company's new energy industry layout.
Profit forecast and investment rating. We estimate that the net profit of the company from 2022 to 2024 is 8.12,13.44 and 1.682 billion yuan respectively, and the EPS is 1.62,2.68,3.36 yuan respectively. With reference to the valuation of comparable companies in the same industry, the company is given 23-25 times PE in 2022, corresponding to a reasonable value range of 37.30-40.54 yuan, with a "better than big city" rating for the first time.
Risk hint. The production schedule of the project is not as expected, the product price fluctuates greatly, and the downstream demand is not as expected.