The company publishes three quarterly reports for 2022. The company's 22Q1-Q3 operating income is 6.799 billion yuan (year-on-year + 34.51%), homing net profit is 862 million yuan (year-on-year + 16.25%), 22Q3 operating income is 3.321 billion yuan (year-on-year + 135.83%, month-on-month + 94.54%), and homing net profit is 211 million yuan (year-on-year + 40.18%, month-on-month + 5.02%). 2022Q3, the company's gross profit margin is 9.23%, down 8.56 pct month-on-month; net profit rate is 6.15%, down 5.00pct.
Methyl tert-butyl ether and gas business contributed a major increase in Q3 revenue. In terms of sales volume, 2022Q3's dimethyl carbonate series products sold 119900 tons, with a month-on-month ratio of + 17%; methyl tert-butyl ether products sold 163200 tons, with a month-on-month ratio of + 257%; and gas products sold 68900 tons, with a month-on-month ratio of + 243%. In terms of operating income, 2022Q3 dimethyl carbonate series products achieved revenue of 999 million yuan, with a month-on-month ratio of + 2%; methyl tert-butyl ether products achieved revenue of 1.149 billion yuan, with a month-on-month ratio of + 281%; and gas products achieved revenue of 401 million yuan, with a month-on-month ratio of + 262%.
Joint venture to build a capacity of 100000 tons of lithium hexafluorophosphate to enrich the product matrix of lithium materials. The company signed an Investment Cooperation Agreement with Zhongfluorotaihua to establish Sichuan Leshan Zhongfluorochenghua New Energy Co., Ltd. in Leshan City, Sichuan Province. the registered capital of the joint venture company is 1.2 billion yuan, and the capital contribution is 792 million yuan. The proportion of capital contribution is 66%; the capital contribution of Wintek New Materials is 408 million yuan, accounting for 34%.
The joint venture company plans to invest 100,000 tons / year of liquid lithium hexafluorophosphate and its supporting equipment, with a total investment of about 2 billion yuan. As of October 2022, the company has completed and put into production solid lithium hexafluorophosphate production capacity of 2000 tons / year, liquid lithium hexafluorophosphate capacity of 100,000 tons / year, is expected to be completed in June 2023. The company has laid out liquid lithium salts, silicon carbon negative electrodes, wet electronic chemicals and other new materials. It is expected that the company will form a rich lithium material product matrix after the liquid lithium hexafluorophosphate product project is put into production.
Profit forecast and investment advice. The company is building more lithium materials projects, with the release of future production capacity, performance is expected to continue to grow, but the main product price dimethyl carbonate price decline, affecting profitability. We estimate that the EPS of Shida Shenghua in 2022-2024 is 6.72,8.15,13.72 yuan respectively (the previous forecast is 7.60 pound 9.21 pound 12.00 yuan). With reference to the valuation level of the comparable company, it was given 19 times PE in 2022, corresponding to a reasonable value of 127.68 yuan (the target price was 144.97 yuan in the previous period, based on 19 times PE,-13.5% in 2022), and maintained a "better than the market" rating.
Risk hint. The progress of the project under construction is not as expected, the downstream demand is not as expected, and the project approval progress is slow or can not be passed.