In 2021, the company realized a net profit of 816 million yuan, compared with + 143.76% and + 143.76%, and 2022Q1 realized a net profit of 646 million yuan, a year-on-year increase of 452.22%, and the performance exceeded expectations. With the continuous release of new production capacity and the landing of equity incentives, we are optimistic about the future growth of the company. Taking into account the high prosperity of the company's main products and the release of new production capacity, we raised the company's 2022-2023 performance forecast to 1,826,973 million yuan (the original forecast was 679Universe 826 million yuan), increased the 2024 return net profit forecast to 2.029 billion yuan, raised the company's target price to 74 yuan (the original target price is 30 yuan, corresponding to 2022 12xPE), and maintained the "buy" rating.
Glyphosate is booming, and the company's performance has increased significantly in 2021. In 2021, the company realized revenue of 6.484 billion yuan, + 26.60% compared with the same period last year, realized net profit of 816 million yuan, an increase of 143.76% over the same period last year, and realized deduction of non-return net profit of 800 million yuan, + 139.93% of the same period last year. From a business point of view, the company's revenue from pesticide, chemical industry, steam and trade reached RMB 39.07 million, respectively, with revenue of RMB 9.67 million, 50.49% and 14.95%, respectively, compared with the same period last year. The gross profit was RMB 3.170.71 million, which was + 128.25%, 50.44%, 32.1%, 23.32%, respectively. The company's performance growth is mainly due to a sharp rise in the price of glyphosate and other main products.
The high prosperity of the main products has continued, and the performance of 2022Q1 has greatly exceeded expectations. 2022Q1 achieved revenue of 2.719 billion yuan, year-on-year + 74.97%, net profit of 646 million yuan, + 452.22%, deduction of non-return net profit of 638 million yuan, + 454.83%. The company's performance exceeded expectations, mainly due to a substantial increase in the price of its main products. 2022Q1 sold 30414.78 tons of herbicide products, with an average price of 59549.41 yuan / ton, which was-5.37% and 111.96% respectively compared with the same period last year.
New production capacity continues to be released, and equity incentives demonstrate the company's confidence. The technical renovation project of the company's 7600t/an efficient green plant protection products (including 5000 tons of diazinon and 2000 tons of Metolachlor) has been in trial production at the end of last year and has been steadily released with production capacity, which is expected to provide a new profit growth point for the company. The company issued a restricted stock incentive plan for 2022 on April 11, with an incentive scale of 2.98% of the total equity and taking deduction of non-return net profit and return on net assets as the assessment criteria, demonstrating the company's confidence in future development.
Risk factors: product price decline risk; raw material price fluctuation risk.
Investment advice: the company's new production capacity continues to release, while equity incentives hit the ground, we are optimistic about the future growth of the company. Taking into account the high prosperity of the company's main products and the release of new production capacity, we raised the company's performance forecast for 2022-2023 to 1.826 billion yuan (the original forecast was 679 billion yuan), and increased the net profit forecast for 2024 to 2.029 billion yuan. Raise the company's target price to 74 yuan (the original target price is 30 yuan) With reference to the comparable companies Lear Chemical, Yangnong Chemical, Guangxin shares and limin shares in 2022 Wind consistent forecast average 12xPE, give the company 2022 12xPE), maintain the "buy" rating.