2Q23's operating performance improved month-on-month. In the first half of 2023, the company realized operating income of 3.207 billion yuan,-18.56% of the same period last year, and net profit of 326 million yuan, 28.63% of the same period last year. Among them, 2Q23 achieved an operating income of 1.631 billion yuan in a single quarter and a net profit of 179 million yuan, an improvement compared with the previous quarter.
The narrowing of 2023H1 product price spreads affects profits. In the first half of 2023, energy prices were high, market demand recovered slowly, the prices of the company's main products declined compared with the same period last year, and the price gap between the company and raw materials narrowed. Take EVA as an example, according to the average price of EVA in Shandong in the first half of Wind,2023 is about 15323 yuan / ton, down 33.52% from the same period last year.
2023H1, the company's EVA income is 1.033 billion yuan,-22.4% compared with the same period last year, and gross profit is 443 million yuan,-38.5% compared with the same period last year.
High-end, differentiated layout of new materials platform enterprises. The company is mainly engaged in the research and development, production and sales of advanced polymer materials and special chemicals, with high value-added olefin deep processing industry chain and coal-to-methanol, DMTO, EVA, PP, EO, EOD and other advanced devices. The company continues to focus on the direction of new materials, focusing on the distribution of new energy materials (such as photovoltaic materials, new energy battery materials, etc.), biomaterials (such as biodegradable materials, biomass materials, etc.) and special materials (such as special fine materials, special engineering plastics, etc.) and other fields, to create new materials platform enterprises.
We will actively lay out new materials and make steady progress in key construction projects. During the 14th five-year Plan period, the company mainly invested in new energy materials and biodegradable materials, including EVA photovoltaic film materials, lithium solvents, lithium diaphragm materials, and biodegradable materials including PLA, PPC and so on. The company's current construction projects mainly include 200,000 tons / year EVA, 20,000 tons / year UHMWPE, 90,000 tons / year VA, 130,000 tons / year PLA, 300,000 tons / year PO, 50,000 tons / year PPC, 10,000 tons / year high purity electronic special gas, 3000 tons / year lithium additives, etc., in the second half of 2023, the company is expected to complete and put into production, 90,000 tons / year VA plant is expected to reduce the cost of EVA 20, 000 tons / year UHMWPE, 100, 000 tons / year lactic acid, 40, 000 tons / year PLA, 10, 000 tons / year electronic special gas and other devices will increase the company's high gross margin product category.
Profit forecast and investment rating. We estimate that the return net profit of the company from 2023 to 2025 is 660 million yuan, 880 million yuan and 1.13 billion yuan respectively, the EPS is 0.49,0.66,0.85 yuan respectively, and the BPS is 5.49 yuan in 2023. With reference to the valuation of comparable companies, the reasonable value range is given a reasonable value range of 21.26-22.78 yuan (corresponding to 43-46 times of PE and 3.9-4.1times of PB in 2023) according to the value of 1.41.5 times PEG in 2023, maintaining a "better than the market" rating.
Risk tips: product prices fluctuate sharply; the progress of new projects is not as expected; the price of upstream raw materials fluctuates sharply.