Event description
Jiangshan shares announced the third quarterly report of 2022: during the reporting period, the company achieved operating income of 7.1 billion yuan, + 48.12% compared with the same period last year; net profit of 1.689 billion yuan, + 221.86% compared with the same period last year.
Event comment
The traditional volume and price of pesticides fell in the off-season, and the performance of Q3 was in line with expectations. In 2022, Q3 company achieved revenue of 1.869 billion yuan, year-on-year + 13.97%, month-on-month ratio-25.59%; net profit of 476 million yuan, year-on-year + 118.61%, month-on-month ratio-16.06% Ting Q3 gross profit margin 30.18%, month-on-month + 1.40pctjue Q3 net profit rate 25.47%, month-on-month + 2.90pct. The company's high performance growth in the first three quarters is mainly due to the high glyphosate price, which is the off-season of traditional pesticides in the third quarter, so the Q3 performance has declined, but the company still maintained a good profitability, and the net interest rate rose instead of falling month-on-month.
The production and marketing situation of the main products is good, and pesticides are expected to maintain a high boom. The company has a production capacity of 70,000 tons of glyphosate per year, as well as the production capacity of glycine and IDAN. Dichlorvos, trichlorfon and other product processes are in the lead in China. According to the operating data disclosed by the company, the company's sales of herbicides, pesticides and chlor-alkali products in the first three quarters were 8.03 / 346000 tons respectively, and Q3 sales were 2.28 picks 0.42 million tons respectively. Compared with the same period last year, the sales volume was + 66.48%, 10.58%, 2.99%,-15.99%, 19.56%, 1.49%, respectively. The unit price of sale is 5.41%, 3.26 and 0.11 thousand yuan respectively (excluding tax, the same below), and the month-on-month price is-12.34%, 3.05%, 16.22%, respectively. The prices of the main raw materials of Q3 company's products have fallen to varying degrees. The prices of glycine, iminodiacetonitrile, methanol, coal and yellow phosphorus are 1.75, 1.32, 0.23, 0.08 and 18800 yuan / ton, respectively, compared with-33.51%, 0.009.77, 9.77, 5.94, 15.97, respectively. The traditional off-season of pesticides has led to a decline in the price and sales of related products of the company. In the future, glyphosate and other pesticides still show a tight supply and demand pattern, and are expected to maintain a high degree of prosperity.
The company's new plans are frequent, and great expansion is expected to bring high growth. The company plans to cooperate with Wengfu Group to build the third production base, invest 22 billion in the fine chemical industry park of Weng'an Economic Development Zone in Qiannan Prefecture, Guizhou Province, and strengthen the cooperation between the upstream and downstream of the industrial chain. synergy will help the company grow in the future. At the same time, on the basis of the existing 30,000 t / a TCPP plant and 10,000 t / a BDP plant, the company plans to build 50,000 t / a TCPP production plant, 5000 t / a BDP production plant and 25,000 t / a phosphorus oxychloride production plant, which is expected to be completed by the end of September 2023. In addition, the company will implement projects such as "optimization and upgrading of diglyphosate mother liquor wastewater" to further reduce the discharge of glyphosate mother liquor wastewater and realize the resource utilization of phosphorus and chlorine.
Investment suggestion
We estimate that the company's 2022-2024 operating income will be 9.339 billion yuan, 9.956 billion yuan and 10.494 billion yuan, and the net profit will be 2.18 billion yuan, 2.327 billion yuan and 2.463 billion yuan respectively.
Risk Tips:
The downstream demand of the product is not as expected, the progress of the project is not as expected, and the price of raw materials fluctuates greatly.