An overview of events. On October 30, Yuxin shares released the third quarter report of 2023, saying that from January to September in 2023, the company realized operating income of 4.666 billion yuan, down 1.40% from the same period last year, and realized a net profit of 382 million yuan, an increase of 13.97% over the same period last year. In the third quarter of 2023, the revenue in the third quarter was 1.71 billion yuan, down 2.88% from the same period last year, and the month-on-month increase was 15.78%. The net profit of returning home in the third quarter of 2023 was 164 million yuan, an increase of 31.43% over the same period last year and 49.06% from the same period last year. The non-return net profit was 160 million yuan, an increase of 19.36% over the same period last year and 45.92% month-on-month growth. The company's quarterly profit hit a record high.
Product prices have rebounded steadily, and cost-effectiveness has gradually emerged. The company's main products include MTBE, isooctane, butanone and maleic anhydride. The prices of major products rebounded steadily in the third quarter. In the third quarter, the average market price of MTBE was 7719 yuan / ton, up 2.94% from the previous quarter. The average market price of butanone was 7710 yuan / ton, up 2.51% from the previous quarter. The average price of maleic anhydride was 6829 yuan / ton, up 2.33% from the previous quarter. Alkylated oil (isooctane) was 8517 yuan / ton, up 15.68% from the previous month. The sales gross profit margin of 2023Q1-Q3 Division is 13.16% and 13.37% respectively, and the profitability of the product increases steadily. The company's long-term technological innovation drives the continuous reduction of energy consumption, unit consumption and production costs of various products, resists the periodic fluctuations of the chemical industry, and ensures stable performance growth.
The fixed increase plan has been approved, and a number of projects under construction have been steadily advanced. On August 30, the company announced that the company's application for additional registration had been approved by the CSRC. According to the fixed increase plan, the company plans to issue no more than 9582.36 million shares and raise no more than 3 billion yuan to invest in the first phase of the light hydrocarbon comprehensive utilization project and supplementary working capital. The total investment of the fund-raising project is 3.384 billion yuan, the proposed construction site is Huizhou New material Industry Park, the project construction period is 36 months, and the main implementation body is Huizhou Boko Environmental Protection New Materials Co., Ltd. The construction contents of the project include: a 240,000 t / a maleic anhydride unit, a maleic anhydride hydrogenation unit (130,000 t / a BDO+19 10,000 t / a DMS), a 60,000 t / a PBS plant, a 46,000 t / a PTMEG plant, a 360t / an oxidation catalyst plant and the project supporting public works, etc. Upon completion of the above project, Yuxin will provide Yuxin with a new product capacity of 1476,000 tons / year DMS, 342,000 tons / year BDO, 460,000 tons / year PTMEG and 60,000 tons / year PBS. At present, various projects are progressing steadily.
Investment suggestion: the company is a leading C4 deep processing enterprise in China, which has the ability of comprehensive utilization of C 4 components such as n-butene, isobutene, n-butane and isobutane. At the same time, the industrial layout in the field of new materials and functional chemicals has also been launched in an all-round way. The company has a number of projects under construction, which are expected to drive profit growth in the next three years. We estimate that the return net profit of the company from 2023 to 2025 is 5.30,6.87 and 930 million yuan respectively, the corresponding EPS is 1.66,2.15,2.90 yuan respectively, and the current price (October 30, 2023) is 11 times, 8 times and 6 times respectively. We are optimistic about the future growth of the company and maintain the "recommended" rating.
Risk tips: 1) the project construction schedule is less than expected risk; 2) the impact of the promotion of new energy vehicles on the company's future business risk; 3) macroeconomic fluctuations and policy uncertainty risk.