New Asia Qiang released its mid-2021 report, with operating income of 414 million yuan in the first half of the year, an increase of 71.37% over the same period last year, and a net profit of 147 million yuan, an increase of 71.88% over the same period last year. Of this total, Q2 achieved an income of 221 million yuan, an increase of 69.4% over the same period last year, an increase of 14.4% over the previous year, and a net profit of 76 million yuan, an increase of 72.01% over the same period last year. Q2 revenue and profit volume continued to hit a new high.
The price of major products has increased compared with the previous month, and the income ring ratio has continued to hit a new high.
The operating data announced by the company show that thanks to the improvement in capacity utilization after the completion of the technical transformation of vinyl double heads and phenylchlorosilane, the production of phenylchlorosilane Q2 in the main sectors increased by 16.69% and 7.76% compared with the previous month; however, affected by factors such as exports, product sales in both sectors declined month-on-month, while sales of functional auxiliaries and phenylchlorosilane Q2 decreased by 7.61% and 7.18%, respectively.
Although sales have declined, the average product price Q2 has increased significantly. The average sales price of functional auxiliaries and phenylchlorosilane reached 5.55 and 5.06 million yuan / ton in the first half of the year, up significantly from 5.33 and 45000 yuan / ton in the first quarter. As a result, the Q2 income volume of the company's functional auxiliaries and phenylchlorosilane increased by 0.31% and 16.52%, respectively.
The cost of raw materials rose slightly, the gross profit margin of sales decreased slightly, and the exchange had a slight impact on the company's sales gross profit margin of 41.14% in the second quarter, down 2.13PCT from the first quarter, and the operating cost Q2 increased by 18.67% compared with the 14.4% month-on-month increase in income Q2, mainly due to the rise in commodity prices driven by crude oil prices. the purchase price of benzene chloride announced by the company in the first half of the year was 66600 yuan / ton. There was a significant increase compared with 0.57 thousand yuan / ton in the first quarter.
The company's net profit rate of sales in the second quarter was 34.44%, maintaining a high level, but down 2.09PCT from 36.53% in the first quarter compared with the same period last year. In addition to the impact of the decline in gross profit margin, the exchange loss caused by RMB appreciation slightly affected Q2 net profit, and the company's Q2 financial expenses increased by 6.41 million yuan compared with Q1, mainly due to the difference before and after the exchange loss caused by the continued appreciation of RMB against the US dollar in the second quarter. have a small impact on net profit.
High performance growth continues to materialize, and high-end applications and phenyl fundraising projects have not yet been fully priced. Our expectations of high revenue and profit growth in the company's in-depth report have been fulfilled, but the market has not yet priced the high-end applications of products such as hexamethyl, vinyl and phenyl. We believe that as the "edible salt" of the silicone industry, functional auxiliaries, phenylchlorosilane and downstream varieties will provide the company with a sustained increase in profits, while the application of hexamethyl in photoresist and electrolyte, the application of vinyl and phenyl in new energy, military and other high-end fields has not been fully priced, with the development of high-end application scenarios of the company's products, the company's production capacity continues to release. The volume of income and profit is expected to climb another tall building.
Profit forecast and investment advice: we maintain the profit forecast for the company. It is estimated that the return net profit of the company in 2021-2023 is 2.82,4.03 and 544 million yuan, corresponding to 1.81,2.59 and 3.49 yuan per share in 2021-2023, respectively. We will continue to give a 30-fold valuation in 2021, maintain the target price of 54.23 yuan per share in 2021, and maintain the "buy" rating.
Risk hints: the construction of fund-raising projects is not as expected; product prices are falling sharply; production safety problems.