Zhonghong.com Stock Channel, March 16th. On the evening of March 14th, agrochemical leader Sichuan Hebang Biotechnology Co., Ltd. (securities abbreviation: Hebang Biotechnology, stock code: 603077) disclosed its Dazzling 2021 annual performance report. The report shows that Hebang Biotech achieved operating income of 9.867 billion yuan in 2021, a year-on-year increase of 87.56%; it achieved net profit attributable to the parent company of 3.023 billion yuan, a year-on-year increase of 7284.28%.
The annual report shows that Hebang Biotechnology has long adhered to the guiding ideology of "world-class technology, first-class product quality, and first-class manufacturing cost" and has gradually completed its development in chemical industry, agriculture, and photovoltaics with the help of capital market forces. The basic layout of the three major fields has formed four major business sectors: joint alkali, diglyphosate/glyphosate, methionine, and photovoltaics. Hebang Biotech said that in the aforementioned four major business segments, the company is in a leading position in the world or sales area respectively. The strong performance growth in 2021 is mainly due to the booming production and sales of the main products in the segment business.
In addition, Hebang Biotech announced at the same time that it plans to spin off its subsidiary Sichuan Wujun Solar Technology Co., Ltd. (hereinafter referred to as "Wujun Solar") and list it on the main board of the Shanghai Stock Exchange. Hebang Biotech said that through this spin-off, the listed company will further achieve business focus, which will help Wujun Solar focus on business development in the field of green energy.
As the early layout of the photovoltaic sector enters the harvest period, and the existing agrochemical business is still in a high-prosperity sector, analysts predict that in the future, under the influence of positive factors such as market demand and policy support, Hebang Biotech will The performance trend will still be in an upward channel.
Performance continues to hit the charts, achieving a net profit of 3 billion yuan throughout the year
After the performance data of the 2021 semi-annual report and the third quarterly report continued to rise, the market is optimistic about Hebang Biotech’s 2021 full-year performance The surge has been psychologically expected. Annual report data shows that Hebang Biotech achieved operating income of 9.867 billion yuan in 2021, a year-on-year increase of 87.56%; net profit attributable to the parent company was 3.023 billion yuan, a year-on-year surge of 7284.28%; non-net profit after deduction was 3.014 billion yuan, a year-on-year surge of 69.063% %. At the same time, the company plans to distribute a cash dividend of 0.15 yuan (tax included) for every 10 shares based on the number of shares that should be distributed on the equity registration date when the 2021 profit distribution plan is implemented.
Overall, Hebang Biotech showed steady growth and strong operating resilience during the reporting period. After achieving a net profit of 2.009 billion yuan in the first three quarters of 2021, the full-year performance exploded again. In addition, the company's investment value in the capital market has also further emerged.
The company stated that the substantial growth in performance was due to the booming production and sales of its main products such as diglyphosate, glyphosate, glass, sodium carbonate, and ammonium chloride. The annual report shows that during the reporting period, the prices and sales of the company's main products increased. In addition, the company continued to improve management efficiency and employee quality, which ensured the company's high-quality operations, resulting in a relatively substantial growth in operating income.
The annual report shows that during the reporting period, the company continued to use independent technological innovation, process innovation, introduction of advanced technology and other measures and means to realize the production of bisglyphosate, glyphosate, methionine, joint alkali, photovoltaic glass devices, etc. The continuous improvement of production capacity utilization rate and cost control level has created technical conditions for the company to obtain good profit margins.
The new product methionine has reached the production target and the future growth space is revealed
In May 2021, Hebang Biotech stated on the investor communication platform: "From January to April, the company's external sales of methionine Already thousands of tons." This annual report also disclosed that the Hebang Biomethionine project will be officially transferred to a solid state and put into production at the end of 2021, marking the company's further improvement in the process operation capabilities of high-tech, large-scale and complex chemical equipment in the chemical industry. The company's methionine project The operation site is fully "colorless and odorless", marking a new level of green development for the company.
Everbright Securities pointed out in a research report in November 2021 that the price of my country's methionine market has continued to decline overall after experiencing a sharp rise and fall in 2014-2015. The current price is basically at the bottom, with a relatively broad market. upside space.
Tianfeng Securities research report shows that the methionine market is stable.
Foreign media reported that due to the rise in natural gas and other raw materials, the international quotation of CJ methionine has increased by 10% since January 31, 2022. According to customs data, domestic methionine imports in December 2021 were 21,885 tons, a year-on-year decrease of 3.6%; a month-on-month increase of 7,237 tons, an increase of 49%.
After Hebang Biotech’s methionine production line is put into production, it will become the second company in China to achieve mass production of liquid methionine. "The company plans to continue to develop based on the methionine project after one to two years of stable operation and process optimization, with the goal of becoming the world's leading manufacturer of liquid methionine." Hebang Biotech previously stated.
The subsidiary plans to spin off and list the new materials sector, and the market outlook is promising
Hebang Biotech also disclosed this time "About the spin-off of its subsidiary Sichuan Wujun Solar Energy Co., Ltd. to Shanghai Securities Plan for listing on the main board of the exchange. The plan shows that the company plans to spin off its holding subsidiary Wujun Solar Energy and list it on the main board of the Shanghai Stock Exchange. After the spin-off is completed, Hebang Biotech will still have controlling interest in Wujun Solar.
The announcement shows that Wujun Solar’s ??main business in the past three years has been the production and sales of high-quality original glass, Low-E coated glass and finished glass. From 2019 to 2021, Wujun Solar achieved revenue of 911 million yuan, 986 million yuan, and 1.393 billion yuan respectively; net profits attributable to the parent company were 134 million yuan, 241 million yuan, and 492 million yuan.
Hebang Biotech stated that through this spin-off, the company will further achieve business focus, highlight its main business, focus on the development of traditional chemical industry and agricultural fields, and achieve excellence and strength. At the same time, as the operating entity of glass products and photovoltaic business segments, Wujun Solar, a holding subsidiary, will be listed independently, which will help enhance capital strength and investment and financing capabilities, optimize corporate governance structure, seize market opportunities in the development of the photovoltaic industry, and enhance business competition. capabilities will help strengthen the company's layout in the photovoltaic field, promote the company's comprehensive business development, improve the company's overall asset quality, and enhance the company's overall profitability.
At present, Wujun Solar Energy has been registered with the Shanghai Stock Exchange. After listing in the future, it will continue to increase Hebang Biotech’s performance by leveraging its industrial chain advantages.
In the new materials business, Hebang Biotech’s early layout projects are progressing smoothly. The annual report shows that Chongqing Wujun's annual output of 8GW photovoltaic packaging materials and products project is implemented as planned; Fuxing Technology's annual output of 10GWN+ ultra-high-efficiency monocrystalline solar silicon wafer project is implemented as planned; Chongqing's photovoltaic packaging materials and products project will be implemented in early 2021 The implementation will start and will gradually enter trial production and production from March 27, 2022 to January 2023.
In addition to the above-mentioned projects, Hebang Biotech also makes relatively frequent capital moves in the field of new materials.
On October 19, 2021, Hebang Biotech announced that its subsidiary Wujun Solar Energy plans to jointly invest in the establishment of Anhui Fuxing Crystal with Tong Xingxue, Hainan Renai Cultural Center, and Tianjin Haoding New Energy Partnership *** Technology Co., Ltd., whose main business is the production of silicon wafers for photovoltaic power generation, has a total investment of 3 billion yuan, and an initial registered capital of 455 million yuan, all of which is cash. The production model of this project mainly uses high-purity solar-grade silicon materials to produce silicon wafers through crystal growth, slicing and other manufacturing processes. Wujun Solar Energy, which plans to be spun off and listed, holds 58.33% of Anhui Fuxing New Energy Technology Co., Ltd.
Public information shows that in addition to investing, investor Tong Xingxue will also serve Fuxing Technology full-time, provide advanced process technology support for the project, and form a company operations team. Tong Xingxue has more than 20 years of experience in the world's solar photovoltaic industry. She has held senior management positions in many companies at home and abroad, and has applied for more than 200 patents. She has filled domestic and foreign product and technology gaps in many aspects of the photovoltaic industry chain and will undoubtedly greatly assist cooperation projects. development.
The announcement issued by Hebang Biotechnology also shows that the project is expected to have annual sales revenue of 6.5 billion yuan and a total annual profit of 1.171 billion yuan after reaching production. After the implementation of the project, the company's industrial layout will be further optimized, the company's competitiveness will be enhanced, and it will be in line with the company's long-term development plan and the interests of all shareholders, and will be conducive to the company's sustainable development.
It is worth mentioning that on March 10, Hebang Biotech also disclosed its main operating data from January to February 2022.
According to preliminary calculations, from January to February 2022, Hebang Biotech achieved total operating income of about 1.8 billion yuan, a year-on-year increase of about 100%; it achieved a net profit attributable to shareholders of listed companies of about 650 million yuan, a year-on-year increase of about 500%. Faced with a good start in performance, Kaiyuan Securities analysts expressed optimism that Hebang Biotech will usher in steady improvement in performance in 2022 with its status as the southwest soda ash giant and the global leader in diglyphosate. He further believes that with the development of photovoltaic glass, monocrystalline silicon wafers and phosphate rock development projects With orderly advancement, the company's upstream and downstream product chains have been further extended, and the product layout has been further enriched. Hebang Biotech's development prospects are promising.