Jianghan Xincai released its semi-annual report of 2023, the company's revenue in the first half of the year was 1.177 billion yuan, down 36.34% from the same period last year, and its net profit was 375 million yuan, down 35.77% from the same period last year. Of this total, Q2 company achieved an income of 596 million yuan, an increase of 2.66% over the previous month, and a net profit of 220 million yuan, an increase of 42.66% over the previous month, deducting 207 million yuan of non-homed net profit, an increase of 43.38% over the previous month. The company's quarter-on-quarter performance improved significantly compared with the previous quarter, and still showed high profitability in the trough of the functional silane industry.
The second quarter performance improved significantly compared with the previous quarter, and the industry trough showed high profitability and resilience. Under the influence of international monetary tightening, geopolitics and other factors, the global economic downturn and the release of new production capacity in the supply-side industry have led to a gradual decline in the silane boom since the second half of 2022, and the current silane price has fallen back to the historical bottom. according to Baichuan Yingfu data, as of June 2023 The average prices of aminosilane, epoxy silane and methacryloxy are 25 yuan / kg, 29.5 yuan / kg and 26 yuan / kg respectively (including tax), which has fallen to less than 10% of the historical quantile since 2018, but the company still showed high profitability in the second quarter. The sales net interest rate increased to 36.93% from the previous quarter, mainly due to (1) the company actively promoted the construction and production of fund-raising projects and improved its cost control ability. Ease capacity bottlenecks. The annual output of 60,000 tons of trichlorosilicon achieves full-load operation, forming a complete green cycle from raw materials to final products, reducing production costs; functional silane coupling agents and intermediates have been partially put into production, contributing 7.88 million yuan in benefits in the first half of the year, alleviating capacity bottlenecks; (2) the sales end firmly domestic and international double cycle, production and sales volume to achieve steady growth, according to the company's announced operating data. In the second quarter, the company achieved functional silane production and sales of 25067 and 25132 tons, respectively, an increase of 2.01% and 3.23%, respectively.
Wrestling high-end silicon-based materials, long-term growth can be expected. (1) promote the localization of high-end silane. The fundraising functional silane project has been partially put into production in the first half of the year. In addition, the company plans to invest 1 billion yuan to build a package of new silicon-based materials, with a long-term planned silane production capacity of 182000 tons. After the project reaches production, it will help to improve the supply capacity of domestic high-end silane; (2) promote the pilot test of ultra-high purity synthetic quartz sand and form a territory for the expansion of self-produced raw material silicon tetrachloride to medium and high-end materials and high-value fields.
Maintain profit forecast and maintain "buy" rating: the company's functional silane coupling agent and intermediate project has been partially put into production, with a long-term planned capacity of 182000 tons, and the cost control level of the trichlorosilicon project has been further improved after it was put into production. We maintain the profit forecast and expect the company's homing net profit from 2023 to 2025 to be 8.04,10.62 and 1.344 billion yuan respectively, corresponding to 14X, 10X and 8X PE respectively, and maintain the "buy" rating.
Risk hint: the progress of the new project is not as expected; the risk of demand decline