The company released its three-quarter report for 2022, with revenue of 941 million yuan in the first three quarters, an increase of 48.50% over the same period last year, and net profit of 265 million yuan, an increase of 15.42% over the same period last year. Of this total, Q3 realized revenue of 275 million yuan, an increase of 25.68% over the same period last year, a decrease of 18.15% compared with the same period last year, and a net profit of 74 million yuan, down 10.88% from the same period last year and 22.92% from the previous year. The price of functional auxiliaries and phenylchlorosilane products declined in the third quarter, and the company's third-quarter results were under pressure, slightly lower than expected.
Demand came under pressure in the third quarter, with functional auxiliaries and phenyl prices falling. According to the company's announced operating data, sales of functional auxiliaries reached 2718 tons in the third quarter, down 10.84% from the previous quarter. The average sales price of functional auxiliaries was 78743 yuan / ton, down 11.67% from the previous quarter. Among them, hexamethyldisilazane, according to Baichuan Yingfu data, the average price of hexamethyldisiloxane in the third quarter was 91576 yuan / ton, down 10.97% from the previous quarter, and the average price of hexamethyldisiloxane in the third quarter was 76858 yuan / ton, down 14.86% from the previous quarter. Phenylchlorosilane sales reached 514 tons in the third quarter, with an increase of 2.03% compared with the previous quarter. The average price of Q3 phenylchlorosilane products was 59782 yuan / ton, down 12.94% from the previous quarter. The volume and price of functional auxiliaries declined in the third quarter, the price of superimposed phenyl fell, and the company's profitability was under pressure. The gross profit margin of sales in the third quarter was 27.68%, a month-on-month decline in 2.14pct.
Layout the second base and enrich the product matrix. The company announced the landing of the second base in Hubei in June. the main products include 17000 tons of hexamethyldisiloxane (including 2000 tons of electronic grade), 5000 tons of hexamethyldisiloxane, 4200 tons of tetramethyl divinyldisiloxane, 1880 tons of dimethylvinyl chlorosilane, 3000 tons of bis-trimethylsilylamine lithium and 3000 tons of di-tert-butyl dicarbonate. With the commissioning of the second base, the company will further enrich the product matrix of functional auxiliaries and stabilize the performance impact caused by the fluctuation of product prosperity.
Phenyl production capacity gradually released, optimistic about the growth of phenyl plate. According to the company announcement, the company's annual production of 10000 tons of phenylchlorosilane (phase II) and 2500 tons of phenyl intermediates were put into production on June 3, 2022, with the gradual production of phenyl projects and the commissioning of phenyl downstream deep processing projects. Phenyl plate is expected to improve the company's performance certainty.
Adjust the earnings forecast to maintain the "buy" rating. Taking into account the impact of demand disturbance, functional auxiliaries plate under pressure, we adjust the profit forecast, 2022-2024 is expected to achieve a net profit of 349,502 million yuan 606 million (originally 401 pound 503 million 607 million), corresponding to PE 16X, 11X, 9X, respectively, to maintain the "buy" rating.
Risk tips: product prices fall; projects under construction are not as expected; demand decline risk.