Jiahua Energy released its half-yearly report for 2023. In the first half of 2023, the company's total operating income was 4.499 billion yuan, down 27.63% from the same period last year; the net profit belonging to shareholders of listed companies was 626 million yuan, down 39.02% from the same period last year.
The decline in profits in the first half of 2023 was mainly due to the decline in product prices. 1) from the point of view of product revenue The operating income of fatty alcohol (acid), polyvinyl chloride, chlor-alkali, sulfonated pharmaceutical products, sulfuric acid (total acid), steam, photovoltaic power generation, loading and unloading and related changes in the first half of 2023 were-40.96%,-34.93%,-26.04%,-30.76%,-66.71%,-11.18%, 8.54%, 5.84% to 13.36, 7.62, 5.34, 2.14, 0.50, 10.18, respectively. 0.74 yuan and 67 million yuan. 2) according to the purchase price of raw materials, the prices of fatty acid, ethylene, industrial salt, toluene and sulfur in palm kernel oil and separated palm kernel oil changed by-48.36%,-16.38%,-28.82%,-4.37% and-64.93% to 6866.47, 6917.86, 381.69, 6342.78 and 929.49 yuan / ton respectively in the first half of 2023. 3) the rates of sales, management (including R & D) and financial expenses in the first half of 2023 changed by 0.05, 1.42 and-0.53 percentage points to 0.14%, 5.99% and 0.24%, respectively, and the total expense rates of the three items changed by 0.94 percentage points to 6.36%.
The company further expands the scale of PVC products and enriches the category of fatty alcohol products. 1) in March 2022, the company invested 2 billion yuan to build the second phase of 300,000 tons / year VCM project and 300,000 tons / year polyvinyl chloride (PVC) second phase project. 2) in March 2023, the company plans to invest no more than 600 million yuan to build 150,000 tons of fatty alcohol plants and supporting facilities per year, with a planned construction period of 18 months.
The company continues to promote the development of hydrogen energy and photovoltaic business and vigorously develop green energy economy. 1) the company's two 1MW hydrogen fuel cell fixed power stations have adopted the scientific mode of "peak cutting and valley filling", which has entered the stage of trial operation, which will further promote the company to save energy and increase efficiency, reduce carbon emissions and achieve certain economic benefits. 2) in the first half of 2023, the company cumulatively completed the distributed photovoltaic grid-connected generation capacity 21.4MW, and the photovoltaic industry generated 99.4441 million kilowatt hours in the first half of the year, an increase of 18.86% over the same period last year.
Profit forecast and reference rating. We estimate that the EPS of the company from 2023 to 2025 will be 1.14,1.25,1.30 yuan respectively. With reference to the valuation of comparable companies in the same industry, we think that the reasonable valuation range is 10-12 times PE in 2023, corresponding to the reasonable value range of 11.40-13.68 yuan, which is better than the market rating.
Risk hint. In the construction and production capacity is not as expected, aliphatic alcohol, sulfonated medicine and other product prices fluctuated sharply, raw material price fluctuations, macroeconomic decline.