Event: Xin'an shares released its annual report for 2021, with operating income of 18.977 billion yuan during the reporting period, an increase of 51.45% over the same period last year; net profit of 2.654 billion yuan belonging to shareholders of listed companies, an increase of 354.56% over the same period last year; and diluted earnings per share of 3.24 yuan and operating net cash flow of 3.52 yuan per share according to the latest total share capital. Among them, Q4 realized operating income of 5.66 billion yuan in 2021, an increase of 82.98% over the same period last year and 16.65% month-on-month growth; the net profit attributed to shareholders of listed companies was 1.053 billion yuan, an increase of 172.06% over the same period last year, and an increase of 38.74% over the same period last year; equivalent to 1.29 yuan of EPS in a single quarter.
At the same time, the company announced the plan for profit distribution and provident fund to increase equity in 2021, with a cash dividend of 5.00 yuan (including tax) for every 10 shares of all shareholders, and 4 shares for every 10 shares of all shareholders with capital reserve.
The company issued a pre-increase announcement on its results for the first quarter of 2022, which is expected to achieve a net profit of 1.15 billion yuan to 1.25 billion yuan belonging to shareholders of listed companies in the first quarter of 2022, an increase of 313% to 349% over the same period last year, and an increase of 9.21%, 18.71% from a month earlier.
Maintain the investment rating of "prudent overweight". In 2021, the downstream demand is good, and the sales prices of the company's main silicone and pesticide business products have risen, leading to the growth of the company's annual performance in 2021.
In addition, the prices of the company's organosilicon, metal silicon, glyphosate and other products remain high in 2022Q1, and the company's performance rose in the first quarter compared with the previous quarter.
Xin'an Co., Ltd. is a leading enterprise of organosilicon monomer and glyphosate in China, which forms the coordination of two industries with crop protection and new silicon-based materials. In addition, the company's silicone has the advantage of the whole industry chain, the existing silicone monomer production capacity of 490,000 tons / year, can produce downstream raw rubber, liquid rubber and other terminal products. The company's silicone business has developed to high-end areas, focusing on downstream high-value areas such as electric power communications, rail transit and automotive, health care, electronics and new energy. The company actively supports the production capacity of upstream metal silicon. In January 22, the company completed the delivery of 54000 tons of industrial silicon in Jingcheng Silicon Industry. The 100000 tons of industrial silicon project under construction in Yunnan Yanjin and the 65000 tons of high purity silicon project of Pingwutianxin, a joint venture subsidiary, were promoted rapidly. with the increase in the self-sufficiency rate of raw materials, the company will effectively stabilize the adverse factors caused by raw material price fluctuations.
The company continues to optimize its product structure, and projects under construction include glyphosate, phosphorus series flame retardants and new flame retardant materials, etc., and the plant protection plate and new material product line will be gradually extended in the future. We raised the company's profit forecasts for 2021-2023 with EPS of 3.51,3.84,4.11 yuan respectively, and maintained a "prudent overweight" rating.
Risk hint: the risk of raw material price fluctuation, the risk that the production of new projects is not as expected, and the risk of downstream expansion is not as expected.