In 2021, the company's Q1 realized operating income of 3.769 billion yuan, + 3.73% compared with the same period last year, and realized net profit of 182 million yuan, + 182.95% compared with the same period last year. Throughout the year, we believe that with the elimination of the impact of the epidemic and the landing of various fund-raising projects, the company's performance will pick up significantly and maintain its "buy" rating.
Product prices + industrial plate warmed up, the traditional plate performance is strong. In 2021, the company's Q1 realized operating income of 3.769 billion yuan, year-on-year + 3.73%, net profit of 182 million yuan, + 182.95%, deduction of non-net profit of 164 million yuan, and + 173.82% of the same period last year. This is mainly due to the rising prices of 2021Q1's main products and the strong development of the industrial sector, which we believe is mainly due to the merger of Haihua technology-related products into the industrial sector.
"Huilong Ding 02" completed the conversion, employee stock ownership plan and other incentive plans to ensure long-term development. In March this year, the company's initial issue size of 514 million yuan of "Huilongding 02" has been completed, a total of 79.09 million shares, the conversion price of 6.50 yuan per share. In April this year, the company announced a draft employee stock ownership plan, which further combines the interests of shareholders, the interests of the company and the personal interests of employees, so as to promote the long-term, sustained and healthy development of the company. We expect that the company will continue to adopt various incentives in the future to ensure long-term development.
Outlook for the whole year: the volume of fund-raising projects + long-term downstream expansion will help the performance hit bottom and rebound. In 2021, the company's performance increment is expected to come mainly from the 3000 tons / year thymol project and the second-class separation project, of which the thymol project was officially put into production in March. We expect the two projects to contribute 1.47 billion yuan to the net profit of 50 million yuan respectively. In 2022, projects such as 3000 tons / year menthol, 10000 tons / year cresol, 15000 tons / year BHT expansion and cogeneration will be put into production as planned, thickening the company's short-term performance, but also helping the company to maintain competitiveness in existing market segments and lay the foundation for long-term sustainable development. In the long run, the company's four major product lines all have the demand to expand production and downstream products, and move forward to a first-class fine chemical enterprise.
Risk factors: the progress of new business is not as expected, competition intensifies more than expected, and raw material prices rise.
Investment advice: as the impact of the epidemic on the company is gradually eliminated and the fund-raising projects gradually reach production, it is expected that the company's performance will bottom out and rebound in 2021, and the company's performance will continue to grow as the new projects continue to be put into production in the next two years.
We maintain the company's 2021-2023 homing net profit forecast of 544 PE, 887 million yuan, corresponding to the EPS forecast of 0.58 Universe 0.77 trillion 0.94 yuan. Considering the long-term growth of the company's performance and high-tech barriers, we give the company a target price of 21 yuan corresponding to 36 times PE, in 2021 (maintenance) and maintain the "buy" rating.
