The company's main business is R & D, production and sales of special aromatic hydrocarbons. The company's products mainly include heavy aromatic hydrocarbon series products, environmentally friendly aromatic oil series products, light fuel oil and asphalt, etc., with an annual production capacity of 400000 tons of heavy aromatic hydrocarbons and 400000 tons of environmentally friendly aromatic oil. Heavy aromatic hydrocarbon series products and light fuel oil mainly adopt self-developed intermittent processing technology, continuous production process and molecular distillation and sedimentation technology, which are mainly used in road construction, building waterproofing, rubber products and industrial grease.
The company's heavy aromatics products are in a leading position in viscosity, freezing point, flash point and aromatics content and other important indicators. Environmental protection aromatic oil series mainly adopts Dutch Shell hydroisomerization dewaxing technology, the products include various types of white oil, with excellent oxidation stability and chemical stability, widely used in daily chemical products, textiles, chemical fiber, rubber, industrial lubrication and so on.
Results are under pressure in 2021 and profits are expected to be released in 2022. In 2021, the company's operating income was 1.458 billion yuan, + 49.97% compared with the same period last year. The net profit of returning to the mother was 42 million yuan,-27.02% of the same period last year. The main reasons for the decrease of net profit at the same time of revenue growth are as follows: (1) after the fund-raising project is put into production, the sales volume has increased greatly, but the economic benefit has not yet been realized; (2) the gross profit per unit of heavy aromatics production project is stable, but the sales volume is lower than that of the previous year.
In terms of product structure, revenue from heavy aromatics products accounted for 50.39% of revenue in 2021, white oil accounted for 28.13%, and fuel oil and light fuel oil accounted for 11.92%.
Fund-raising projects to achieve product upgrading, industrial chain extension. The company plans to issue convertible bonds to raise 397 million yuan, which will be used for environmental protection aromatic oil product upgrading and light hydrocarbon comprehensive utilization projects. The construction period of the project is expected to be 2 years, and the annual net profit is expected to be 88 million yuan after reaching production. The project includes 100 thousand tons / year aromatic oil products deep processing and production food grade / cosmetic grade white oil plant, 80,000 tons / year light white oil supplementary refining unit and 12,000 standard cubic / hour light hydrocarbon comprehensive utilization device. Among them, the light hydrocarbon comprehensive utilization unit was officially put into operation on June 30, 2022. The construction of the company's environmental protection aromatic oil product upgrading and light hydrocarbon comprehensive utilization project can ensure the stable supply of raw materials, realize the ecological chain of circular economy, and at the same time realize product upgrading, further extend the industrial chain, and improve the company's economic benefits and comprehensive competitiveness.
Profit forecast and investment advice. The company actively develops new products and new technologies, and has more production capacity in the future, and its performance is expected to continue to grow. We estimate that the EPS of Bohui shares in 2022-2024 will be 0.47,0.49 and 0.64 yuan respectively. With reference to the valuation level of the comparable company, it is given 33-35 times PE in 2022, corresponding to a reasonable value range of 15.51-16.45 yuan, with a rating of "better than the big city" for the first time.
Risk hint. The price of the product fluctuates sharply, the downstream demand is lower than expected, and the progress of the project under construction is not as expected.