Events:
On August 21, the company released a semi-annual performance report, with operating income of 230 million yuan in the first half of the year, an increase of 26% over the same period last year, a net profit of 52 million yuan, an increase of 4.1%, and a net profit of 47 million yuan, an increase of 8.1% over the same period last year. Basic earnings per share is 0.39 yuan.
The performance was in line with expectations, and the expenses and depreciation costs of the new workshop increased in a single quarter, the company's revenue in the second quarter was 117 million yuan, an increase of 40% over the same period last year; the net profit returned to its mother was 26 million yuan, an increase of 6.5% over the same period last year, basically the same as the previous quarter. The company's revenue growth is mainly due to the increase in sales revenue of special engineering plastics and cosmetic raw materials. The profit growth rate is lower than the revenue, mainly because the relevant workshops in the new plant are in the capacity climbing stage, and the increase in depreciation and labor costs leads to the increase in the unit cost of products.
In the first half of the year, the company has 145 million yuan under construction, and the first workshop, the second workshop and supporting facilities with an annual output of 8000 tons of aromatic ketones and its supporting projects have entered the stage of trial production in February, but have not yet contributed profits.
After the new factory capacity is put into operation smoothly, the company's profit volume is expected to rise rapidly.
DFBP business is improving and the pattern is concentrated, HAP business is expected to expand rapidly in automotive, aerospace, medical and other fields, the rapid development of special engineering plastics PEEK and its raw material DFBP sustained rapid growth, but DFBP capacity expansion is slow, and the supply is concentrated in the company and Yingkou Xingfu two enterprises, the company is expected to fully benefit from the DFBP upstream. The company is the leader of domestic new cosmetic anticorrosive raw materials HAP, which is deeply bound to the international giant Dezhixin. After the new factory is put into production to break the capacity bottleneck, HAP business is expected to expand rapidly.
Deep ploughing direction with chemicals, 8000 tons of capacity expansion opens the growth space company ploughing aromatic ketone fine chemicals for more than ten years, in DFBP, HAP and other products have achieved a more prominent market position. The total production capacity of the company's old factory area is 4200 tons, and the newly increased production capacity of 8000 tons is expected to open up the company's growth space.
Earnings forecast, valuation and rating
We estimate that the company's income for 2023-25 will be RMB 6.2 billion, respectively, with a corresponding growth rate of 56%, 31%, 22%, 1.6%, 210 million, 250 million, 52%, 29%, 20% and 33%, respectively, respectively. In view of the improvement of the industry structure of DFBP and HAP and the substantial expansion of the company's production capacity, we maintain the company's target price of 31.0 yuan and maintain the "buy" rating.
Risk hint: projects under construction are not advancing as expected, competition aggravates risks, and environmental protection costs rise.