Financial analysis of leading chemical enterprises

The Dezhou site continues to carry out cost optimization and project development, and improve the layout chain of the existing production line. The company headquarters in Dezhou base, on the one hand, still continue to optimize and improve the existing production line, equal capacity replacement construction of efficient large capacity coal-fired boilers to replace the original old installation, continue to improve the existing production costs, and gradually put into production projects for further optimization and improvement, in order to continuously enhance the competitiveness of products; On the other hand, on the basis of existing products, the company continues to extend the development of new materials. In the planning and construction of high-end solvent projects and nylon 66 high-end new materials projects, through the project layout, on the one hand, it can further stabilize the multi-product co-production process, disperse the periodic profit pressure of some products, and at the same time, on the basis of traditional product layout, Extend to the field of new energy and new materials, break the limitation of the development space of traditional products, according to the company's calculation, after the two projects are put into operation, it will bring 7.9 billion yuan of revenue and 1.235 billion yuan of profit margin for the company, and further improve the central profit of the existing base.

The first phase of the Jingzhou Base project accelerated, and the green new energy and new materials project continued to advance. The company's first phase of Jingzhou Base project is still in full swing. The overall project construction is mainly focused on the company's niche products. On the basis of the first phase of project construction, the company further extends the green new energy and new materials project, layout NMP, BDO installation, PBAT, acetic anhydride and other products, and further extends the product on the basis of the first phase of project. To new energy materials, degradable plastics and other fields to extend the industrial chain layout, and continue to enrich the company's product types and industrial chain base in Jingzhou.

1.3 Yangnong Chemical: The first quarter performance exceeded expectations, and the operation ushered in an inflection point

First-quarter results beat expectations. In 2021, the company achieved a total revenue of 11.841 billion yuan, an increase of 20.5%; Net profit attributable to shareholders of listed companies was 1.222 billion yuan, up 1.02% year on year; In the first quarter of 2021, the operating income was 5.268 billion yuan, an increase of 42%. The net profit attributable to shareholders of listed companies reached 900 million yuan, an increase of 103.5% year-on-year, and the performance exceeded expectations.

After the third quarter of 21 years, the company's product price bottom reversal, although the current price has fallen quarter-on-quarter, but basically stable, and significantly increased year-on-year, we believe that the company's 22 years of product transaction price is higher than 21 years. From the perspective of product prices, the current price of the main pesticide product Kung-permethrin is 208,000 yuan/ton, the current price of bifenthrin is 300,000 yuan/ton, and the current price of the main herbicide product glyphosate is 65,000 yuan/ton. The company's glyphosate is mostly a long order, and the average transaction price in 22 years has increased compared with that in 21 years. In terms of fungicides, the company quoted 175,000 yuan/ton for phenacetoconazole, 248,000 yuan/ton for pyrazolium and 186,000 yuan/ton for propicoconazole. From the price point of view, September to October in 21 years, affected by the power rationing policy, the price of agricultural chemical products skyrocketed rapidly, October to December, with the impact of the power rationing policy faded, the price of agricultural chemical products fell back, 22 years January to February, pesticide products showed a high shock trend, we believe, The price of pesticide products will fluctuate at a high level in 22 years, and the company's earnings will continue to improve.

The fourth phase of Youjia has made a positive contribution to the performance. According to the company announcement and project acceptance report, part of the company's Youjia Phase 4 project has been put into production, and in December 2021, The project with an annual output of 3800 tons of bifenthrin, 1000 tons of fluridine, 6000 tons of nitramone, 3000 tons of phenacetoconazole, 2000 tons of propionoconazole and 3000 tons of acetophenone chloride and its by-products will be completed and commissioning will begin in January 2022. We believe that the fourth phase of the company will contribute positively to the company's 2022 performance.

1.4 Longbai Group: the performance in the first quarter met expectations, and the concentration degree increased the profit of the industrial chain

The gross profit margin of raw materials increased, and the net profit margin increased. In the first quarter of 2022, the company achieved revenue of 6.079 billion yuan, an increase of 30.49%, and realized net profit of 1.064 billion yuan, an increase of 0.03%. In the first quarter, titanium dioxide prices remained high, sales reached a record high, and revenue achieved substantial growth. In the first quarter, the price of titanium concentrate increased by 2% quarter-on-quarter, the price of sulfuric acid increased by 18.3% quarter-on-quarter, corresponding to the spread of sulfuric acid titanium dioxide decreased by 5.8%, the company's gross profit margin in the first quarter decreased by 5.2% quarter-on-quarter. In terms of expenses during the period, the company's third expense rate in the first quarter was 11.8%, down 6.6% from the fourth quarter, of which the sales expense rate and management expense rate fell by 1.6% and 3.9% respectively, driving the net interest rate increased by 1.6% from the quarter.