Event description
On October 30, Kaiser released its report for the third quarter of 2023, showing that the company's operating income in the first three quarters was 1.565 billion yuan, down 14.81% from the same period last year, and its net profit was 314 million yuan, down 35.44% from the same period last year. The company realized operating income of 535 million yuan in the third quarter, a decrease of 2.51% over the same period last year, an increase of 1.92% compared with the same period last year, and a net profit of 72 million, down 51.89% from the same period last year and 60.94% from the previous year.
The company's Q3 performance was in line with expectations. Obviously affected by the macro environment, the company achieved operating income of 535 million yuan in the third quarter, a decrease of 2.51% over the same period last year, an increase of 1.92% over the same period last year, and a net profit of 72 million, a decrease of 51.89% over the same period last year, and a decrease of 60.94% from a month earlier. The company's revenue basically remained stable, and the overall gross profit margin of Q3 was 26.06%, which was basically the same as the previous month, mainly because the company's long-chain dicarboxylic acid series gross margin decreased compared with the same period under the influence of the international market, while exchange earnings decreased, resulting in a comprehensive decline in net profit compared with the same period. It is expected that in the future, with the recovery of downstream demand and the accelerated release of the company's products, the performance will gradually recover.
China Merchants Group indirectly invested in the company, and the strategic cooperative development bio-based polyamide company raised a total of no more than 6.6 billion yuan through fixed increase, raising funds to invest in the field of scientific and technological innovation, issued to Shanghai Yaoqin. China Merchants Group directly holds 48.9995% of Shanghai Yaoqin. In addition, the company and China Merchants Group signed a "Business Cooperation Agreement" in June, which stipulates that China Merchants will do its utmost to promote and implement the use of Kaiser bio-based polyamide products. the amount of bio-based polyamide resin in Kaiser biological products purchased and used was not less than 10,000 tons, 80,000 tons and 200000 tons in 2023, 2024 and 2025, respectively. This strategic cooperation not only lays the foundation for the promotion of bio-based polyamide, but also strongly promotes the company to achieve the strategic goal of "striving to become a global leader in synthetic biology".
Actively expand the product layout and give full play to the advantages of biotechnology
The company is currently under construction projects including an annual output of 500000 tons of bio-pentylenediamine and 900000 tons of bio-based polyamides, 30,000 tons of long-chain dicarboxylic acid and 20,000 tons of long-chain polyamides, etc., continue to expand the application of high-temperature, medium-temperature, long-chain series of bio-based polyamides and continuous fiber-reinforced bio-based polyamide composites in all kinds of scenes. In order to solve the problem of long-term supply of biological manufacturing raw materials and reuse of biological waste, the company built an experimental project with an annual output of 10,000 tons of straw to produce lactic acid in Shanxi synthetic Biological Industry Park. In addition, the company plans to lay out the synthesis of polypeptide drugs and use synthetic biology technology to produce low-cost and high value-added APIs. At the same time, it is also developing biologically based cyclic compounds containing heteroatoms and arranging biologically based piperidine products. The company's multi-product layout, give full play to the advantages of biosynthesis technology, new products and new production have become the cornerstone of the company to improve performance potential.
Investment suggestion
It is estimated that the company's net profit from 2023 to 2025 will be 4.72,7.54 and 1.1 billion yuan respectively (the previous value is 7.04,10.35 and 1.337 billion yuan), with year-on-year growth rates of-14.6%, 59.6% and 45.9%. The corresponding PE was 66, 41 and 28 times, respectively. Maintain a "buy" rating.
Risk hint
(1) risk of macroeconomic and industrial policy fluctuations
(2) the risk of new project construction progress, product production progress and sales uncertainty; (3) import and export policies such as tariffs and international trade environment change risk; (4) exchange rate fluctuation risk
(5) the risk of leakage or leakage of core technology.