The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved operating income of 3.334 billion yuan, a year-on-year decrease of 30.12%, and realized net profit to mother of 280 million yuan, a year-on-year decrease of 42.41%.
In the first quarter of 2024, the company achieved operating income of 959 million yuan, an increase of 23.28% over the previous year, and realized net profit of 154 million yuan, an increase of 672.53% over the previous year. The company plans to distribute a cash dividend of 2.3 yuan (tax included) for every 10 shares.
Refrigerant prices have risen, and 2024Q1 performance has improved significantly. In 2023, the company achieved operating income of 3.334 billion yuan, a year-on-year decrease of 30.12%, and realized net profit of 280 million yuan to mother, a year-on-year decrease of 42.41%.
In the first quarter of 2024, the company achieved operating income of 959 million yuan, an increase of 23.28% over the previous year, and realized net profit of 154 million yuan, an increase of 672.53% over the previous year. On October 24, 2023, the Ministry of Ecology and Environment held an executive meeting to review and approve the “2024 Total HFC Quota Setting and Distribution Plan”, and supply restrictions for third-generation refrigerants were officially implemented. According to the Ministry of Ecology and Environment, the national production quotas for HCFC-142b and 180,503 tons in 2024 were 9,355 tons and 180,503 tons respectively, and the production quotas of Sanmei Co., Ltd. were 1,706 tons and 9,547 tons respectively, accounting for 18.24% and 5.29%, respectively; in 2024, the national production quotas for HFC-134a, HFC-125, HFC-32, and HFC-143a were 215,670, 165,668 tons, 239,563 tons, and 45,517 tons, respectively HCFC-22 The production quotas of tons and Sanmei Co., Ltd. were 51,506 tons, 31,498 tons, 27,779 tons, and 6,285 tons, respectively, accounting for 23.88%, 19.01%, 11.60%, and 13.81%, respectively. In the context of the introduction of a quota policy and downstream air conditioning production exceeding expectations, refrigerant prices rose sharply. The company's average refrigerant price reached 23,829 yuan/ton in the first quarter, up 8.47% year on year and 25.71% month on month. The increase in refrigerant prices led to an increase in the company's gross margin. 2024Q1's gross sales margin was 22.77%, an increase of 12.63 percentage points over the previous year.
Endogenous expansion continues to lean towards new fluorine-containing materials. The company actively lays out business fields such as new materials and new energy, and extends to downstream high-value-added fields of fluorine chemicals. At present, the company has laid out projects such as: 3,000 tons (500 tons for the first phase) of LiFSI, 5,000 tons of FEP, 5,000 tons of PVDF, 6000 tons of lithium hexafluorophosphate and 100 tons of high-purity phosphorus pentafluoride (PF5), 1200 tons of R116, and 20,000 tons of high-purity electronic grade hydrofluoric acid.
Investment proposal: Sanmei Co., Ltd. is an advanced domestic fluorine chemical enterprise, and the implementation of refrigerant industry policies is expected to drive the company's operations to continue to improve. The company's 2024/2025/2026 EPS is expected to be 1.05 yuan, 1.25 yuan, and 1.31 yuan respectively, maintaining a “buy” rating.
Risk warning: falling product prices, falling demand, project progress falling short of expectations, etc.