Event: the company announced that its operating income in 2020 was 750 million yuan, down 14.03% from the same period last year, and its net profit was 222 million yuan, down 27.72% from the same period last year. The company announced that the profit distribution plan for 2020 is 6 yuan for every 10 shares of cash dividend, no bonus shares, no increase.
Event: the company released a report for the first quarter of 2021, with revenue of 218 million yuan, an increase of 9.37% over the same period last year, and a net profit of 52 million yuan, down 42.38% from the same period last year. The company's performance is in line with expectations.
The annual report and quarterly report are in line with expectations. In 2020, due to the continuous impact of the COVID-19 epidemic, the macro-economy encountered great challenges, the impact of the Xiangshui 321 accident gradually faded, and the market supply and demand and product prices returned to a reasonable range. The company's gross profit margin was 55.20%, down 5.72 pct from last year, mainly due to changes in accounting standards and the impact of product prices. The expense rate during the company was 18.89%, an increase of 0.75pct over the same period last year. The company's main products, industrial fungicides, sold a total of 33804 tons, an increase of 12.03% over the previous year. Q1 in 2021, the company has a revenue of 218 million yuan, a month-on-month ratio of + 19.55%, a gross profit margin of 45.38% and a month-on-month ratio of + 4.36pct.
Leading enterprises of isothiazolinone industrial fungicides. Baiao Chemical ploughed isothiazolinone industrial fungicide industry for nearly 20 years, and has developed into the largest manufacturer of isothiazolinone industrial fungicide in Asia.
The company's products include several series of products, such as CIT/MIT, MIT, OIT, DCOIT, BIT and so on. At present, the production capacity has exceeded 30,000 tons. In addition, the company is also equipped with BIT to produce chemical intermediate o-chlorobenzonitrile (F-nitrile).
Continue to expand production to help the development of the company. The company invests in the third phase project of isothiazolinone series products in Pine Mudao Branch. The project covers an area of 55000 square meters, with a total investment of 483 million yuan. It is planned to add 2000 tons of CIT/MIT12000 or MIT, 2500 tons of BIT, 1200 tons of OIT or 600tons of DCOIT. The project is expected to be completed before the end of 2021, when the total production capacity of the company's industrial fungicides will exceed 40,000 tons, and the advantage of production scale will be more prominent. The company continues to promote the layout of the industrial chain and improve the company's operating capacity and core competitiveness.
Issue equity incentives to help the company's long-term development. The company issued a 2021 restricted stock incentive plan (draft), which intends to grant 5.82 million restricted shares to the incentive target, of which 5.52 million shares are granted for the first time and 300000 shares are reserved. The total number of equity incentive targets is 64, including the company's general manager and other core management team. The assessment target of equity incentive is: based on the net profit in 2020, the growth rate of net profit from 2021 to 2023 is not less than 30%, 60% and 90%, respectively. The price of the incentive is 7.36 yuan per share. The implementation of this equity incentive will fully mobilize the enthusiasm of the company's employees and help the company's long-term development.
"overweight" rating. It is predicted that the revenue of the company from 2021 to 2023 is 8.57,9.58 and 1.063 billion yuan respectively, and the net profit is 2.49,2.88 and 330 million yuan respectively. The corresponding EPS is 0.95,1.10 and 1.26 yuan respectively, and the PE is 15 times, 13 times and 11 times respectively.
Risk hints: raw material price fluctuation risk, environmental protection and safety risk, project construction risk not up to expectations, and the public data used in the research report may have the risk of information lagging behind or not updated in a timely manner.