The profit of 2022H1 shareholders during the share period was 2.026 billion yuan, an increase of 242.8% over the same period last year. The company issued a 2022H1 performance report, with revenue of 12.931 billion yuan during the reporting period, an increase of 35.8% over the same period last year, a gross profit of 3.581 billion yuan, an increase of 102.8% over the same period last year, and a profit of 2.026 billion yuan for the period attributable to shareholders, an increase of 242.8% over the same period last year. The main reason for the performance growth in this period is that the demand for the main products has continued to recover since last year, and the sales volume and the average selling price of the products have both increased.
The average prices of monosodium glutamate, lysine and threonine rose in the first half of the year. 1) the food additive sector of 2022H1 achieved sales revenue of 6.066 billion yuan, an increase of 34.9% over the same period last year, a gross profit of 1.27 billion yuan, an increase of 110.8% over the same period last year, and a gross profit margin of 20.9%, an increase of 7.5% over the same period last year. The improvement in the performance of the food additive division was mainly due to the increase in the average selling price and sales volume of monosodium glutamate. During the reporting period, the average price of monosodium glutamate was 8476 yuan / ton, up 18.1% from the same period last year, and the sales volume was 590600 tons, up 18.5% from the same period last year. 2) the 2022H1 animal nutrition sector achieved sales revenue of 4.754 billion yuan, an increase of 37.3% over the same period last year, a gross profit of 1.398 billion yuan, an increase of 128.5% over the same period last year, and a gross profit margin of 29.4%, an increase of 11.7% over the same period last year. Among them, threonine achieved sales revenue of 1.381 billion yuan, an increase of 25.2% over the same period last year, its sales volume was 130900 tons, an increase of 11.5% over the same period last year, and the average selling price was 10555 yuan / ton, an increase of 12.4% over the same period last year. The sales income of lysine was 1.022 billion yuan, an increase of 59.1% over the same period last year, and its sales volume was 131600 tons, an increase of 27.2% over the same period last year. The average selling price was 7761 yuan / ton, up 25.09% from the same period last year.
It is expected to benefit from the continuation of high prosperity of xanthan gum. 2021H1 colloid plate realized revenue of 940 million yuan, an increase of 137.7% over the same period last year, a gross profit of 475 million yuan, an increase of 215.2% over the same period last year, and a gross profit margin of 50.6%, an increase of 12.5% over the same period last year; the average selling price was 28344 yuan / ton, up 61.5% over the same period last year. Benefiting from the rising oil prices, xanthan gum is in short supply, and the average price of xanthan gum continues to rise. According to Baichuan Information, as of August 26, 2022, WTI crude oil was $93.06 per barrel, continuing to fluctuate at a high level. According to Zhuochuang Information, as of August 26, 2022, xanthan gum was quoted at 440,000 yuan / ton, up 76.00% from the same period last year, and the price difference was 365,000 yuan / ton, up 104.45% from the same period last year.
Profit forecast and valuation: benefiting from the high prosperity of the industry and the improvement of the company's performance, we raise our profit forecast for the company. We estimate that the net return profit of Fufeng Group from 2022 to 2024 is 30.21 (+ 37%), 36.64 (+ 21%) and 44.10 (+ 19%) million yuan, respectively, and the corresponding EPS is 1.19,1.45 and 1.74 yuan per share. With reference to the valuation of the comparable company and taking into account the difference in the valuation of AH shares, the company was given a target price of HK $7.77 at the exchange rate of HK $0.87 (the target price for the previous period was HK $7.77, which remained unchanged on the basis of 7.5 times PE in 2022) and maintained a "better than the market" rating.
Risk hints: the risk of a sharp rise in raw material prices, the risk of falling product prices, and the risk of slowing down economic growth.