In the first quarter of 2021, the company achieved revenue of 944 million yuan, year-on-year + 144.45%, month-on-month + 21.19%, home net profit of 204 million yuan, year-on-year + 488.80%, month-on-month + 24.95%, net profit of 203 million yuan, + 528.35%, month-on-month + 23.82%. The performance hit a new high in a single quarter, far exceeding market expectations, due to the fact that the company's flame retardants are in a high business cycle and the volume and price of products have risen. The 2021Q1 operating net cash flow of the company is + 122.75% compared with the same period last year, due to the increasing profitability of the company.
The management fee is + 57.13% compared with the same period last year, which is mainly due to the cost of granting stock options to employees and the increase in wages and salaries. As the supply of products falls short of demand, downstream consumption continues to be hot, the company expects the first half of the year's net profit to return to the mother of 335% compared with the same period last year, corresponding to 4.23-465 million yuan, the median is 444 million yuan, + 314.95% compared with the same period last year, and the net profit after deduction is expected to be + 310% 350% compared with the same period last year, corresponding to 4.18-459 million yuan, with a median of 439 million yuan, + 330.39% compared with the same period last year.
Flame retardants are not weak in the off-season, amine auxiliaries continue to be hot, and paint auxiliaries are eye-catching. Driven by EU halogen-free regulations and policies, 5G base stations and the outbreak of new energy vehicles, PC is applied on a large scale, and BDP is in short supply. The company Q1 sold 32700 tons of flame retardants, + 87% year-on-year, and the average sales price was 23518 yuan / ton, + 87% year-on-year. By the end of the first quarter, BDP rose to 39500 yuan / ton, TCPP rose to 21750 yuan / ton; amine auxiliaries and catalysts plate, Q1 sales 6309 tons, + 68% year-on-year, the average price 23167 yuan / ton, year-on-year + 14.3%, month-on-month ratio + 9.0%, under the epidemic demand for detergents increased, the company's amine auxiliaries boom; paint auxiliaries business Q1 sales totaled 2290 tons, a year-on-year increase of 1159%, the average sales price was 12383 yuan / ton, month-on-month ratio + 3%. Benefiting from the simultaneous increase in volume and price of products, the company's Q1 gross profit margin is 37.77%, year-on-year + 13.34 pct, is basically the same as the same period last year, and the net interest rate is 21.58%. Compared with the same period last year, + 13.49 pct, + 0.65 pct. The company's 2021Q1 sales expenses are + 138.13% compared with the same period last year, which is due to the increase in sales and freight.
The project under construction is progressing smoothly, enriching the product line and creating a new material platform. The integration project of 550000 tons of functional new materials in Shandong, the Dawei Phase II project and the Linhai Phase II transformation project have all been carried out smoothly. The company will take flame retardant as the core, promote the growth business of amine auxiliaries and paint auxiliaries, and create a new material platform.
Raise earnings forecasts and maintain "buy" ratings. The company set a new high again in the first quarter, the core product BDP boom can be seen long, amine promoters and catalysts and paint production capacity ushered in an accelerated release period, Shandong project relay growth, up-regulated 2021-2023 revenue of 42.94pm 5.262 billion yuan, return to the mother net profit of 9.02x1092pm 1.321 billion yuan, corresponding to PE were 7pm 6pm 5X, reiterated the "buy" rating.
Risk tips: raw material price fluctuation risk, exchange rate fluctuation risk, safety and environmental protection risk.
