The company released its third quarterly report for 2022, with operating income of 2.47 billion yuan in the first three quarters, an increase of 63.54% over the same period last year, and a net profit of 325 million yuan, a year-on-year increase of 287.67%, and a net profit of 379 million yuan, an increase of 400.34% over the same period last year. Of this total, the operating income in the third quarter was 806 million yuan, an increase of 70.55% over the same period last year, and the net profit returned to the mother was 127 million yuan, an increase of 417.94% over the same period last year, deducting 167 million yuan in non-return net profit, an increase of 682.61% over the same period last year. The difference between return to mother and deduction is mainly fair change.
The original drug-end production capacity is released, the preparation-side channel is optimized, and the performance is higher than expected. Pesticide prices as a whole remained high in the first three quarters of 2022. According to operating data, in the first three quarters, the average prices of envalenone, imipramine, fenvalerate and dioxin were 17.13, 30.61, 29.76 and 11.04 million yuan per ton, respectively, up 47.93%, 23.33%, 8.02% and 21.45% respectively over the same period last year. In the pesticide boom, Liaoning Phase I and Phase II reached production, and the sales volume in the first three quarters of the series of enkefenone, imipramine, fenoxazone and dioxin were 5333, 866,726 and 1584 tons respectively, up 22.45%, 38.20%, 53.68% and-6.96% over the same period last year. In addition, the preparation end through technical marketing services and channels to optimize the layout, innovative products quinolone, brand products such as paspalum isoxazone and other rapid release.
Innovative pesticides have entered the continuous release channel, and the company has entered a golden period of growth. According to the company's official account, the first created product, "quinolinone", solved the technical problem that there was no cure for "super weeds" such as sorghum field during the whole growth period, such as Scutellaria mandshurica, Setaria mandshurica, and so on. It is the only herbicide used in the world to control Gramineae weeds after sorghum seedlings. In addition, this year and next year is expected to "prazolium trimethoprim ester" and "phenylpropanone" two new products to continue to market. More innovative varieties are already in the commercial pipeline from the laboratory to the market and will be released in an orderly manner in the future. Innovative pesticides have the characteristics of high efficacy, high gross margin and exclusiveness, which will create high-speed and stable profit increment for Xinda shares.
Maintain earnings forecasts and maintain "buy" ratings. Xianda's third-quarter results exceeded expectations, reflecting the effectiveness of the two-wheel drive expansion of traditional projects and innovative pesticides. Maintain the profit forecast, the company's 2022-2024 revenue is expected to be 31.68,35.25, 4.305 billion yuan, return to the mother net profit is 4.23,5.66, 706 million yuan respectively, corresponding to the PE is 12X/9X/7X, maintaining the "buy" rating.
Risk hint: the price of the product has dropped and the project launch is not as expected.