The company announced that it signed the Investment and Investment Project Agreement with the people's Government of Zhijiang City, intending to purchase 243 mu of land in Yaojiagang Chemical Park, Zhijiang City, for the production and sales of new innovative green herbicides and intermediates. To meet the needs of the industrialization of the company's JS-T205 and other new products, while improving the industrial layout, reducing the risk of single production base management. The total investment of the project is 2 billion yuan, including 1.6 billion yuan in fixed assets (including 1 billion yuan in production equipment). After the project is completed and put into operation, it is expected to achieve an annual output value of 3 billion yuan. Among them, the people's Government of Zhijiang City actively supports the project to apply for project support funds, and assists in the formalities of project establishment, safety assessment, environmental assessment and so on.
From conservative to radical, from Nantong to outside the province. In addition to the expansion of new materials, preparations and Jiangneng public upstream platform on the existing Nantong base, the company has carried out the extension of the second production base in Zhijiang City and opened the company's second growth curve. As a green herbicide, JS-T205 is expected to bring greater performance flexibility for the company. Superimposing the existing pesticide industry chain is perfect, the company throws away the conservative development attitude, opens the growth momentum.
Formally granted equity incentives, becoming the only large-scale equity incentive pesticide state-owned enterprises. The announcement identified June 6, 2022 as the date on which equity incentives were granted for the first time, with a grant price of 24.03 yuan per share. The company provides equity incentives of 3% of the total equity to senior executives, middle-level and core personnel, and the equity ratio reaches the incentive limit of medium-sized state-owned enterprises. at present, it is the only equity incentive enterprise of the three major domestic state-owned enterprises except Yangnong Chemical and Lear Chemical.
Maintain earnings forecasts and maintain "buy" ratings. The company's performance in the first quarter exceeded expectations, and the annual profit is expected to hit the top of pesticide enterprises. Considering the growth momentum after the completion of large-scale state-owned enterprise incentives, as well as the expectation of JST-205, a major innovative drug, the head enterprise should be given a level of valuation. Maintain the profit forecast, the company is expected to return to the parent net profit of 19.41,20.62 and 2.356 billion yuan respectively from 2022 to 2024, corresponding to 10X/9X/8X for PE, and maintain the "buy" rating. Maintain a six-month target market capitalization of 29.1 billion.
Risk hint: the price of glyphosate dropped and the project was not as expected.