According to the three-quarter report of 2020, the company achieved an operating income of 1.331 billion yuan in the first three quarters of 2020, an increase of 15.55 percent over the same period last year, and a net profit of 122 million yuan, a decrease of 18.69 percent over the same period last year.
Of this total, revenue in the third quarter was 366 million yuan, an increase of 24.28 percent over the same period last year, a decrease of 38.69 percent, and a net profit of 27 million yuan, an increase of 13.29 percent over the same period last year, a decrease of 61.97 percent.
The price of the main product enoxone increases and decreases, and the price of isosinone increases flat. Among the company's main product herbicides, the production / sales of enoxone in the first three quarters were 3318.380.256.54 tons respectively, and the sales increased by 40.66% compared with the same period last year. Due to the depressed demand downstream, the average price of enoxone in the first three quarters was 14.38 million yuan / ton, a decrease of 27.88% compared with the same period last year. The output / sales volume of Pinus elliottii in the first three quarters were 2342.84x2478.42 tons, sales increased by 49.24% year-on-year, prices remained stable, and product revenue increased by 51.90% over the same period last year.
The company's gross sales margin in the third quarter was 33.73%, an increase of 1.58 percentage points over the second quarter. We analyze that revenue in the first three quarters increased by 15.55% compared with the same period last year, while homed net profit decreased by 18.69% compared with the same period last year. On the one hand, the gross profit margin of sales in the first three quarters was slightly lower than that in the same period last year; on the other hand, the company's expense rate increased, especially due to exchange losses and other financial expenses.
Small varieties have a big market, pay attention to the long-term growth of the company. Benefiting from the increased resistance of weeds in soybean fields to traditional herbicides such as glyphosate, and the continuous expansion of superimposed crops, the demand for enoxone is expected to continue to grow. while the company first resumed production in Liaoning, the installation and construction of the second phase of the project "5000 tons of alkenone, 10000 tons of alkali sulphide, 9000 tons of molten salt" is steadily progressing; the company's new production capacity is expected to further increase its market share this year. Weifang production base 3500 tons of crude drug project to complete the project, evaluation reports and other related procedures; three new herbicide compounds "quinolone", "prazolol ester" and "phenylpropanone" are in the process of product registration. in the future, it will gradually enter the market, become a new performance growth point, and promote the transformation of Sunda from a production-oriented enterprise to an innovative enterprise. The company continues to open up overseas markets and increase the overseas registration investment of the preparation series of independent products.
Maintain profit forecast: the company's net profit from 2020 to 2022 is expected to be 1.67,2.12 and 256 million yuan, corresponding to 17x, 13x and 11x respectively, maintaining the "overweight" rating.
Risk tips: product prices have fallen sharply; project progress is lower than expected; safety and environmental protection risks.
