New Yaqiang released its semi-annual report for 2021, and the company's total revenue in the first half of 2021 was 414 million yuan, an increase of 71.37% over the same period last year. Of this total, Q2 achieved a total operating income of 221 million yuan, an increase of 69.40% over the same period last year and 14.51% month-on-month. In the first half of the year, the net profit was 147 million yuan, an increase of 71.88% over the same period last year. Of this total, Q2 realized a net profit of 76 million yuan, an increase of 71.99% over the same period last year and 7.04% month-on-month growth. Q2 company ROE is 3.75%, month-on-month increase 0.22pct. Mainly due to the steady increase in downstream demand for new energy vehicles and semiconductors, the company's performance has entered a period of high growth.
Benefiting from the boom in downstream demand, product prices continue to rise month-on-month. Driven by new energy vehicles, semiconductors, LED, health care and other downstream areas, the company's products are booming, and prices continue to rise month-on-month.
The average price of the company's functional auxiliaries is 555,000 yuan / ton in the first half of 2021, of which the average price of Q2 is 57800 / ton, which is 8.58% higher than that of the previous year. The average price of phenylchlorosilane in the first half of the year was 506 million yuan per ton, of which the average price of Q2 was 56500 yuan, up 25.53% from the previous month. Vinyl double head and other projects were put into production, the company's output increased significantly, but sales decreased month-on-month affected by shipping. The company produced 5295.89 tons of functional auxiliaries in the first half of 2021, of which the output of Q2 functional auxiliaries was 2851.84 tons, an increase of 16.69 percent over the previous year. The sales volume of functional additive Q2 was 2482.30 tons, which was 7.61% lower than that of the previous month.
Phenylchlorosilane produced 1930.83 tons in the first half of the year, of which Q2 phenylchlorosilane produced 1001.46 tons, an increase of 7.76 percent over the previous year. The sales volume of phenylchlorosilane Q2 was 700.79 tons, a decrease of 7.18% compared with the previous month. After the impact of shipping gradually fades, we expect the company's sales to increase further.
The phenyl monomer project and the downstream deep processing project are advancing steadily to create the advantage of the phenyl whole industry chain. The company's annual output of 10000 tons of phenyl phase II project is currently in progress, is expected to be put into production next year, phenyl silicone resin project and phenyl intermediate project is also steadily advancing. The new capacity will strengthen the company's scale advantage in phenyl monomers and provide support for downstream deep processing. Phenylchlorosilane can meet the special performance requirements such as high temperature resistance, radiation resistance and insulation, and is gradually used in aerospace, new energy vehicles, LED and other markets. The downstream deep processing of phenylchlorosilane covers many categories, such as phenyl monomer, phenyl intermediate, silicone resin, silicone oil, silicone rubber and so on, which aims to build the whole industry chain of phenyl silicone, one is to enrich the product structure to avoid risks, the other is scale and integration to enhance the company's comprehensive competitiveness.
Maintain earnings forecasts and maintain "buy" ratings. It is estimated that in 2021-2023, the revenue will be 946x122x1.636 billion, and the net profit of return to the mother will be 2.90x376xt 486 million, corresponding to PE of 27X, 21x and 16x respectively, maintaining the "buy" rating.
Risk tips: falling product prices; less-than-expected projects under construction; risk of demand decline