Event: Jiangshan shares released its semi-annual report for 2022, with operating income of 5.231 billion yuan during the reporting period, an increase of 65.87% over the same period last year; net profit of 1.213 billion yuan belonging to shareholders of listed companies, an increase of 295.10% over the same period last year; and net profit of 1.237 billion yuan, up 314.41% over the same period last year. According to the latest total share capital, the diluted earnings per share is 4.08 yuan and the operating net cash flow per share is 3.51 yuan.
2022Q2 achieved operating income of 2.512 billion yuan in a single quarter, up 57.04% from the same period last year, down 7.63% from the previous quarter; realized net profit of 567 million yuan from the same period last year, up 198.40% from the same period last year, down 12.20% from the previous quarter; realized net profit of 599 million yuan from the same period last year, up 226.42% from the same period last year, down 6.11% from the previous quarter; and the EPS for a single quarter was 1.86 yuan.
At the same time, the company announced the semi-annual profit distribution and provident fund share capital increase plan for 2022, which intends to distribute a cash dividend of 30 yuan (including tax) to all shareholders for every 10 shares, no bonus shares, no provident fund to increase equity.
Maintain the investment rating of "prudent overweight". Jiangshan Co., Ltd. is a leading enterprise in the pesticide industry in China, with herbicides, pesticides and other pesticide products. The company's main products glyphosate, trichlorfon, Acetochlor and other products have a good market competition pattern, which is conducive to the company to maintain a high profit space. At the same time, the company extends downstream to the preparation field, acquiring Harbin limin to gradually distribute the preparation terminal market in the northeast and other places. In terms of growth, the company's innovative drug JS-T205 is a new green broad-spectrum herbicide developed by the company. At present, JS-T205 has completed the pilot-scale verification of the whole process and optimized some of the reaction steps, and the company has signed a cooperation agreement in June to accelerate the industrialization of JS-T205. Based on the latest 305 million shares of equity, we raised the EPS of Jiangshan shares to 6.39,6.66 in 2022-2023, and introduced EPS of 6.96 yuan in 2024 to maintain the "prudent overweight" rating.
Risk hint: the risk that the industrialization of the new project is not as expected; the risk of raw material price fluctuation; the risk of product price decline.