Event: the company released the third quarterly report of 2023, 2023Q3 achieved revenue of 662 million yuan, year-on-year + 12.3%, return to the mother net profit of 84 million yuan, + 70.4% year-on-year. 2023Q1-Q3, the company achieved a total revenue of 1.992 billion yuan, year-on-year + 3.3%, return to the mother net profit of 198 million yuan, + 1.6% year-on-year.
Chemical business: the inflection point of chemical business has arrived, and the price of products has increased significantly. In terms of chemical business, the price of n-butanol, the main product of Q3 company, has increased significantly. Referring to Longzhong consultation, the average market price of n-butanol in East China has increased from 7550 yuan / ton at the beginning of July to 9970 yuan / ton at the end of September. The average price of Q3 is 8652 yuan / ton, an increase of 942 yuan / ton compared with Q2. Since October, the average market price of n-butanol in East China has reached 9201 yuan / ton, and we are optimistic that the profitability of Q4 company's chemical business will be further optimized.
Engineering business: abundant orders on hand, winning bids for large-scale engineering projects. In terms of engineering business, in the third quarter, the company signed 36 new engineering orders, totaling 41.47 million yuan, of which 35 were in the design category, totaling 37.67 million yuan, and 1 in the EPC category, totaling 3.8 million yuan. By the end of September, the company had signed unfinished orders worth 520 million yuan. In addition, the company won the bid in the third quarter of the North Huajin United Petrochemical Co., Ltd. fine chemical and raw material engineering project sulfur recovery unit, acid water stripping unit, solvent regeneration unit general contract EPC project, the winning bid amount is 1.307 billion yuan, accounting for 50.06% of the company's audited business income in 2022.
The investment of electrolytic hydrogen sulfide and cellulose acetate butyrate was increased, and the R & D cost increased greatly. 2023Q1-Q3, the company invested 87.3 million yuan in research and development, an increase of 25.33 million yuan over the same period last year. The 100000 square meter / year off-site electrocatalytic decomposition of hydrogen sulfide to hydrogen and sulfur technology development project cooperated with Dalian Chemical Institute has entered the pilot design stage. In addition, the company invests in two new subsidiaries to carry out R & D and management of new materials such as cellulose acetate butyrate and its derivatives, which is expected to continue to improve the fineness and added value of chemical products.
Investment advice and valuation: combined with the company's three quarterly reports, the company's revenue from 2023 to 2025 is expected to be 2.911 billion yuan, 3.808 billion yuan and 4.715 billion yuan respectively, with revenue growth rates of 11.6%, 30.8% and 23.8%, respectively. The net profit of returning home is 332 million yuan, 503 million yuan and 669 million yuan, respectively, with growth rates of 21.4%, 51.2% and 33.0%, respectively.
Risk tips: raw material price fluctuation risk, production safety risk, hydrogen energy, photothermal projects are less than expected risks.