Main points of investment
Event: Jiangshan shares released its three-quarter report in 2022, the company realized operating income of 7.099 billion yuan, an increase of 48.12% over the same period last year; the net profit attributed to shareholders of listed companies was 1.689 billion yuan, an increase of 221.86% over the same period last year; and the net profit of 1.736 billion yuan was deducted, up 238.78% over the same period last year. According to the latest total share capital, the diluted earnings per share is 5.68 yuan and the operating net cash flow per share is 4.54 yuan.
2022Q3 achieved an operating income of 1.869 billion yuan in the single quarter, an increase of 13.97% over the same period last year, a decrease of 25.59%; a net profit of 476 million yuan, an increase of 118.61%, a decrease of 16.06%; and a net profit of 499 million yuan, an increase of 133.39%, a decrease of 16.54%, and an EPS of 1.56 yuan in a single quarter.
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. With the latest share capital of 305 million shares, we maintain the "prudent overweight" rating of Jiangshan shares with an EPS of 6.39,6.66,6.96 yuan respectively in 2022-2024.
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.