Event
On July 13, the company issued a semi-annual performance forecast for 2021, showing that the net profit of the company in the first half of 2021 was 145 million yuan to 148 million yuan, an increase of 69.83% to 73.34% over the same period last year, and the non-net profit of 131 million yuan to 134 million yuan, an increase of 53.37% to 56.88% over the same period last year.
Business analysis
The production capacity of some products has been released, and production and sales have increased to a certain extent. The company has made technical improvements and adjustments on the hexamethyldisilazane production line, and the output has been increased to a certain extent. in the future, the company has further plans to expand production in the field of hexamethyldisilazane. In terms of vinyl double heads, the company originally had a production capacity of 700t, but the newly built capacity of 3000 tons was put into operation in the first quarter of 2021. With the gradual climbing of production capacity, the company's sales continued to grow. In terms of phenylchlorosilane, the company's phenylchlorosilane plant has undergone technical transformation, and the overall output has been improved. in addition, the company's phenylchlorosilane plant will further expand production and consolidate its competitive advantage.
Electronic grade hexamethyldisilazane breakthrough, the company's profit structure continues to optimize. At present, the company has broken through the electronic-grade hexamethyldisilazane technology, and the value of electronic-grade hexamethyldisilazane is more than 3 times that of ordinary hexamethyldisilazane. With the continuous release of electronic-grade hexamethyldisilazane, the company's profit structure will continue to be optimized.
In the long run, the company extends phenyl intermediates to the downstream terminal field, and the room for growth is further opened. In the long run, the company extends from phenyl chlorosilane products to phenyl resin, phenyl silicone oil and phenyl silicone rubber. According to the company announcement, 20,000 tons of phenylchlorosilane downstream products are expected to be completed in August 2022. Help the company to further expand to the lower reaches of the larger market space, conducive to long-term growth.
Profit Forecast and Investment suggestion
We forecast that the return net profit of the company from 2021 to 2023 is 2.98,3.8 and 490 million yuan respectively, the EPS is 1.91,2.46 and 3.17 yuan respectively, and the current market capitalization corresponding to PE is 26.8,20.9 and 16.2 respectively, maintaining the "buy" rating.
Risk hint
The progress of production capacity construction is not as expected; the pattern of product competition is deteriorating; the risk of product price fluctuation; the risk of lifting the ban; exchange rate fluctuation