Event: the company released a semi-annual report for 2021, with operating income of 1.99 billion yuan, year-on-year + 125.2%, return-to-mother net profit of 430 million yuan, year-on-year + 302.6%, deduction of non-net profit of 420 million yuan, year-on-year + 317.5%. In the second quarter, the operating income was 1.05 billion yuan, which was + 110.2%, 10.8%, 230 million yuan, and 10.7%, respectively, compared with the same period of the same period, and + 213.1%, 10.7%, respectively, compared with the same quarter.
The performance of each plate increased significantly compared with the same period last year: the income of 1H flame retardants, amine promoters, catalysts and coating auxiliaries was 1.61 billion yuan, 310 million yuan and 67.5 million yuan respectively, which was + 138.2%, 61.4% and 456.7% respectively over the same period last year. The business income of the three major sectors of Q2 was 840 million yuan, 170 million yuan and 39.14 million yuan respectively, with the largest increase of paint auxiliaries, which were + 297.9% and 38.0%, respectively, and the income growth rates of flame retardants were + 127.4% and 9.2%, respectively.
In the first half of the year, the company's products in various plates were nearly full of production and sales, and sales increased significantly compared with the same period last year. The sales of Q2 flame retardants were basically flat compared with the previous year, and the sales of amine promoters and catalyst plates and paint auxiliaries were + 7.6% and 6.5%, respectively.
The sales prices of the main products 1H and Q2 increased by double digits compared with the same period last year, and the average price of Q2 flame retardants, amine promoters and catalysts and paint auxiliaries increased by 12.7%, 5.2% and 29.7% respectively. The price increase of flame retardant products in the second quarter covered increases in raw materials phosphorus oxychloride, phenol and bisphenol A. the gross profit margin and net profit margin of 1H sales were 37.2% and 21.6% respectively, an increase of 8.6 percentage points respectively over the same period last year.
Global phosphorus series flame retardant leading enterprises, project split case to ensure long-term growth: according to the company's own project construction and capacity expansion plan, the company filed the original "Shandong Wansheng New Materials Co., Ltd. annual output of 550000 tons of functional new materials integrated production project" for the project by stages. The name of the first phase of the project is "Shandong Wansheng New Materials Co., Ltd. annual output of 319300 tons of functional new materials integrated production project", after the split to ensure the construction and production of BDP capacity and related raw materials, bringing certainty for the company's long-term performance growth.
Profit forecast and investment advice. It is estimated that the EPS from 2021 to 2023 will be 1.80,2.36,2.66 yuan respectively, corresponding to 11,8 and 7 times PE respectively, maintaining the "buy" rating.
Risk hint: the project does not meet the expected risk, raw material price fluctuation risk.
