Performance announcement: in 2021, Q1 company realized operating income of 940 million yuan, year-on-year + 144.5%, month-on-month + 21.2%, and realized home net profit of 204 million yuan, + 488.8% year-on-year, + 25.0%, exceeding the profit limit of 200 million yuan in the company's previous pre-increase announcement. It is expected that H1 net profit in 2021 will be 335% compared with the same period last year, and non-net profit will be + 310% 350% compared with the same period last year. The company's net sales profit rate in the first quarter was 21.6%, compared with the same quarter, + 13.5pp, + 5.2ppm, 37.8%, + 13.3pp, + 3.9ppm, 11.4%,-3.4pp,-3.0pp, respectively.
The company adopts the "2-3-4" integrated layout of research, production and marketing, and establishes good cooperative relations with major customers at home and abroad:
At present, the company has two major production bases in Zhejiang Linhai Duqiao Medical Park and national Taixing Economic Development Zone, three R & D centers in Linhai headquarters, Zhangjiang in Shanghai and Taixing in Jiangsu, four regional sales centers in Shanghai, Jiangsu, Zhejiang and Guangzhou, as well as four major business departments of flame retardants, amine auxiliaries, catalysts and paint auxiliaries, and has sales subsidiaries in Europe, the United Kingdom, the United States and Hong Kong. Equipped with warehousing, sales services and logistics to build a global sales network. At present, the company has established long-term cooperative relations with Bayer, Dow Chemical, Kostron, BASF, SABIC, Goldilocks, Huntsman, Rakuten and other well-known enterprises at home and abroad.
The company is the world's largest producer of phosphorus flame retardants: at present, the company has a production capacity of 65000 tons of engineering plastic flame retardants and 51000 tons of polyurethane (9000 tons of soft foams + 42000 tons of hard foams), totaling 116000 tons. It is the largest supplier of phosphorus flame retardants in the world. The company is expected to increase its production capacity again through technical transformation in 2021. After the new project is launched in 2023, the company will add 120000 tons of flame retardant capacity (50,000 tons of BDP, 50,000 tons of TCPP, 20,000 tons of new material flame retardants).
Nanjing Iron and Steel Co., Ltd. and Fosun Group are stationed to help the future development of the company: before the recent equity changes, Wansheng Investment is the controlling shareholder of the listed company. In 2021, Wansheng Investment transferred 70 million tradable shares of Wansheng shares to Nanjing Iron and Steel Co., Ltd., and Nanjing Iron and Steel Co., Ltd. plans to subscribe for 107.8 million non-public offering shares of listed companies with 1.54 billion yuan in cash. After the completion of the issue, the proportion of shares held by Nanjing Iron and Steel Company has reached 29.98%. It is the controlling shareholder of the company, and the actual controller will be changed from a member of the Gao Xianguo family to Guo Guangchang. Guo Guangchang is the actual controller of Nangang shares and holds the shares of Fosun International Holdings Ltd85.3%. The company's flame retardant and special amine business will be deeply compatible with Fosun. The presence of Nangang and Fosun will help the company's business to become bigger and stronger.
Profit forecast and investment advice. It is estimated that the EPS from 2021 to 2023 is 1.80,2.36,2.66 yuan respectively, corresponding to 11,9 and 8 times PE respectively. The company is the leader in the flame retardant industry. Considering the long-term growth brought by Nanjing Steel and Fosun, we give the company a "buy" rating of 20 times PE, coverage for the first time in 2021, with a target price of 36.0yuan per share. no, no, no.
Risk hint: the project does not meet the expected risk, raw material price fluctuation risk.
