Main points of investment
Event: today, the company announced that it intends to issue 990 million yuan of public convertible bonds, all of which are planned to be used for the construction of the 1 million-ton Corn Deep processing Health Food ingredients Project in Dinghai, Zhejiang Province. According to the previous announcement, the product content of this project is intended to cover: starch sugar / sugar alcohol, dietary fiber, aloxone sugar, lactic acid / polylactic acid, amino acid and other products.
2022H1's performance has grown rapidly and its profits have been greatly repaired.
1) with the relative advantages of raw materials and energy and the change of RMB exchange rate, the company's performance increased rapidly in the first half of the year. In 2022 H1, the company achieved revenue of 950 million yuan (year-on-year + 29.9%), net profit of 140 million yuan (+ 22.6%), deduction of non-net profit of 121 million yuan (+ 19.3%), Q2 single-quarter revenue of 540 million yuan (+ 35.2%), deduction of non-net profit of 81.19 million yuan (+ 60.2%), compared with Q1. 2) with the improvement of shipping and exchange rate, Q2's single-quarter profit has been significantly repaired. 2022Q2's single-quarter gross profit margin is 22.19%, month-on-month repair 3.13pcts, net profit 14.94%, month-on-month increase 4.43pcts.
Epidemic unimpeded new production capacity all landed on schedule, Zhejiang Dinghai new factory aims to create another Huakang 1) the epidemic repeatedly did not change the production capacity and landed on schedule. On August 31, the company announced that the project with an annual output of 20,000 tons of maltol landed on schedule, coupled with the project with an annual production capacity of 30,000 tons of erythritol in May this year, the company's performance increased and its certainty was strengthened again during the year. 2) the agreement on the new project of 2 million tons of corn intensive processing in Dinghai, Zhejiang has been signed, and the convertible bond plan continues to demonstrate the company's firm determination. The company announced in August that it plans to build a health food ingredient project of 2 million tons of corn intensive and deep processing in Dinghai, which will be completed in two phases, with an annual processing of 1 million tons. It is intended to be involved in starch sugar / sugar alcohol, dietary fiber, aloxone sugar, lactic acid / polylactic acid, amino acids and other products. On the one hand, the construction of the new plant can help the company to own ports, reduce costs and increase efficiency in transportation; on the other hand, it can help the company break through the capacity bottleneck, continue to take advantage of the big wave of export substitution, and become the world's leading sugar and alcohol enterprises.
Profit forecast and valuation
The company's main business is food sweetener manufacturing. We estimate that in 2022-2024, the company will achieve an income of 1.895 billion yuan, 2.380 billion yuan, an increase of 18.87%, 25.64%, 18.85%, and an estimated net profit of 3.06%, 3.68, and 452 million yuan per share, with a year-on-year growth rate of 29.19%, 20.31%, 22.84%, and 1.28, 1.54, 1.89 yuan per share, respectively. The corresponding PE is as much as that in 24-20-16. In view of the broad prospects and competitiveness of the company, maintain the "buy" rating.
Risk hint
The product price fluctuation risk, the epidemic situation repeated risk, the market competition aggravates the risk and so on.
