Event: the company disclosed 14-year annual performance notice, the net profit belonging to the shareholders of the listed company is about 54.3224 million yuan-59.7546 million yuan, an increase of 100% Mu 120% over the same period last year, in line with expectations. It is estimated that the impact of non-recurrent profit and loss on net profit is about 9.5 million yuan, and the 14-year net profit after deducting non-recurring profit is about 44.8224 million-50.2546 million, an increase of 98.73% 122.82% over the same period last year.

Comments:

The market demand of silicone rubber has gradually recovered, and the chemical business has increased slightly. Silicone rubber is usually only used in a few non-tire areas such as building sealants and conductive buttons, accounting for 6.4% of total rubber consumption in 13 years. As silicone rubber replaces other rubber types in some non-tire segments, its consumption will increase exponentially and the market space will be further opened. It is estimated that by 15 years, silicone rubber will account for 10% of the total domestic rubber consumption, reaching 1 million-1.5 million tons, while by 20 years, this proportion is expected to reach 20%-33%, reaching 3 million-5 million tons, thus driving the linkage between the upstream and downstream industries of the silicone rubber industry. it has a positive impact on the silicone rubber silica produced by the company. It is expected that the sales of highly dispersed silica for T150 mid-range and TMG high-grade silicone rubber will increase. This is reflected in the company's consolidated statements, which grew by 36.60%,-2.95% and 126.72% year-on-year in the first three quarters of 14 years, and this trend is expected to continue into 15 years.

Jinbao Pharmaceutical Co., Ltd. reported a big increase in the company's profits in the fourth quarter. Jinbao Pharmaceutical Co., Ltd., which has a stake of 97.713%, has maintained steady growth in production and sales in the past 14 years. It was included in the company's consolidated statement in the fourth quarter. It is expected to consolidate more than 30 million net profit, accounting for 50.21% of the net profit of listed companies, accounting for 50.21% of the net profit of listed companies. 55.23%, which greatly boosts the net profit level of listed companies. Jinbao Pharmaceutical Co., Ltd. has good assets and good marketing, and is expected to further increase its growth rate for 15 years, and consolidate its results for 4 quarters. It is expected that the company's 15-year net profit will increase even faster than the same period last year.

Valuation rating: the company's traditional chemical industry is affected by the macro environment of the industry and strives for sustained restorative growth in the future; Jinbao Pharmaceutical, which has successfully acquired excellent assets, is regarded as the first stick of the transition pharmaceutical health strategy. It is expected that the move to continue to develop the pharmaceutical industry in the form of mergers and acquisitions will continue, becoming the first year of the company's transformation within 15 years, and will enjoy the high growth and high valuation of the pharmaceutical industry. Jinbao Pharmaceutical Co., Ltd. consolidated the table in the fourth quarter of 14 years, regardless of the subsequent extension, it is estimated that the EPS in 14-16 years will be 0.21,0.52,0.61 yuan respectively, corresponding to 78 times, 32 times and 27 times of PE. Taking into account the strong sales capacity and extension expectations of Jinbao, it is valued at 40-42 times in 15 years, with a target price of 21-22 yuan.

Risk hint: the product price reduction risk, the extension is lower than expected.