Xin'an shares released its annual report for 2022, with revenue of 13.343 billion yuan in the first half of the year, an increase of 57.72 percent over the same period last year, and net profit of 2.334 billion yuan, an increase of 181.69 percent over the same period last year. Of this total, revenue in the second quarter was 6.841 billion yuan, an increase of 45.26 percent over the same period last year, an increase of 5.21 percent over the same period last year; and the net profit of returning to the mother was 1.108 billion yuan, an increase of 96.44 percent over the same period last year, with an increase of-9.58 percent. It is mainly due to the rise in product prices in the second quarter, but the profit level is still at a historically high level.
The price of glyphosate rose and fell in the second quarter, and the profitability was in a good range. According to the company's announcement, the average sales price of pesticide raw drugs in the second quarter was 599,000 yuan / ton, down 16.47% from the previous quarter, and the average sales price of pesticide preparations was 365,000 yuan / ton, down 12.87% from the previous quarter. From the supply side, affected by environmental protection policies, the new production capacity of glyphosate will still be limited, while in the first half of the year, domestic glyphosate production decreased by 3.1% compared with the same period last year due to the maintenance and shutdown of some enterprises, raw material supply problems and other factors. From the demand side, domestic GM is expected to gradually liberalize, and glyphosate supply and demand is expected to be in a tight balance. The company has a production capacity of 80,000 tons of glyphosate, superimposed and purchased glyphosate preparations, with a total annual sales volume of 100000 tons. The company relies on the herbicidal, insecticidal, sterilization and other products and channel resources of Xin'an, Xingyu and Yingtai. Endogenesis + epitaxy to create a highly competitive core product group.
Industry chain up + value chain upgrade to improve the layout of the industry chain. Affected by the epidemic and other factors in the first half of the year, the demand for organosilicon weakened, the prices of raw materials such as metal silicon were adjusted back, and the price of organosilicon DMC showed a trend of rising and falling. According to Baichuan Yingfu data, the average market price of silicone DMC in the second quarter was 24887 yuan / ton, down 24.62% from the previous quarter. Based on the industrial basis of recycling of "chlorine, silicon and phosphorus" elements, the company continues to strengthen and complement the chain. Industrial chain upward: the first phase of the company's Yunnan Yanjin silicon mine with reserves of 80 million tons has fully reached production in mid-2021. the company has an existing industrial silicon production capacity of 154000 tons, and the 100000-ton project under construction in Yunnan Yanjin is expected to be put into production in the second half of 2022. The capacity distribution of industrial silicon has exceeded 300000 tons. Improvement of the value chain: in depth to terminal and high-end development, the terminal conversion rate of silicon-based industry reached 41% in the first half of the year, with medium-and high-end products accounting for 48%.
Maintain a "buy" rating. The company's main product glyphosate profit level is good, we maintain the profit forecast, the company is expected to achieve 2022-2024 return to the mother net profit of 27.01 million yuan, corresponding to the PE is 8X/7X/7X, maintaining the "buy" rating.
Risk tips: product prices fall; projects under construction are not as expected; demand decline risk.