Event: the company released the mid-year report in 2013. in the first half of the year, the company realized operating income of 1.258 billion yuan, year-on-year-9.92%, net profit of 138 million yuan,-28.24%, and non-return net profit of 133 million yuan,-24.01% of the same period last year. Of these, the second-quarter operating income was 595 million yuan,-12.71% compared with the same period last year, and-10.06% compared with the same period last year; the net profit returned to the mother was 60 million yuan,-35.06% from the same period last year, and-23.91% from the previous year; and the net profit from non-return was 57 million yuan,-26.46% from the same period last year, and-24.93% from the previous year. The performance is in line with expectations.
The price of aliphatic amine fell in the first half of the year, and the decline in profitability put pressure on the performance. In the first half of the year, the company sold 53800 tons of aliphatic amines, + 4.23% compared with the same period last year, and the average sales price was 12300 yuan / ton,-15.26% compared with the same period last year. Organic solvents sold 29000 tons, + 5.09% year-on-year, with an average sales price of 0.78 million yuan / ton,-4.10% year-on-year.
Sales of synthetic spices 6468.87 tons, year-on-year-19.79%, the average sales price 352,000 yuan / ton, + 0.31%, basically the same. Aliphatic amine is the main business of the company, affected by the sluggish demand downstream of the product, although the sales volume has increased slightly, but the unit price has decreased, and the profitability has declined. Take isopropylamine as an example, the price of isopropylamine in the second quarter was 1.09 million yuan / ton, compared with the same period last year.-9.92%, month-on-month-23.24% However, isopropylamine prices have risen for a short time since the third quarter, rising from 0.9600 yuan / ton at the beginning of July to more than 13,000 yuan / ton at the end of August, and profitability has been repaired.
With the steady progress of Ningxia spice project, the business of lithium extraction has great potential for growth. The company's main synthetic spice customer is Chivaton, whose exports fell in the first half of the year and its profitability declined. Ningxia Xinhua annual output of 74650 tons of synthetic spices project phase I products have been trial-produced, the project progress completed 80%, opening the company's spice growth ceiling. The company's lithium extraction project has gradually landed, and the industrial trial project of lithium extraction from mother liquor by extraction method signed with Salt Lake and Lanke Lithium Industry has been successfully put into production in July; the lithium recovery company cooperated with Yaoning Technology to build the first phase of 10,000 tons / year waste lithium recovery production line, and successfully applied the extractant to the Green Meimei battery recovery production line.
Maintain earnings forecasts and maintain "overweight" ratings. It is estimated that the operating income of the company from 2023 to 2025 is RMB 26.41 million, respectively, and the net profit from 2023 to 2025 is estimated to be 3.07 Compact 4.32 / 569 million yuan, corresponding to the PE of 20X/14X/11X. Maintain the "overweight" rating.
Risk hint: production capacity construction is not as expected, raw material costs are rising sharply, and product promotion is not as expected.