Outlet financial reporter Lu Hua
The performance of the new stock listing immediately "changed face", and the protagonist of the dramatic scene in the capital market was Haike Xinyuan's turn this time.
Recently, Haike Xinyuan disclosed the 2023 annual report and the first quarter report of 2024 respectively, the financial report shows that last year, the company achieved revenue of 3.363 billion, a year-on-year increase of 11.01%, and a net profit attributable to the parent company of 31.62 million, a year-on-year decrease of 88.86%;
As a leading solvent for lithium-ion battery electrolytes in China, Haike Xinyuan was listed on the GEM of the Shenzhen Stock Exchange on July 7, 2023, but on the second trading day after listing, the stock price continued to decline, and the performance began to turn from high growth to a cliff-like decline, and the stock price performance has been sluggish since then. As of the close of trading on the 29th, Haike Xinyuan reported 14.99 yuan / share, which has fallen below the issue price, and has been listed for less than a year, with a market value shrinking by more than half, and the performance is almost "ankle chopping".
The stock price broke and the performance was "ankle chopped"
Haike Xinyuan is a fine chemical enterprise established in October 2002, its core business focuses on the field of lithium-ion battery electrolyte solvents, and also covers the R&D, production and sales of high-end propylene glycol, dipropylene glycol, 1,3 butanediol and other fine chemicals.
On the first day of listing, Haike Xinyuan hit the highest price of 32.77 yuan / share, and then it fluctuated all the way down, less than 10 months, Haike Xinyuan's share price has fallen by 118.61%, and its market value has more than doubled, and it has been in a state of breaking for a long time.
The response of the secondary market is closely related to the performance, before the listing, Haike Xinyuan's revenue and net profit are in a state of steady rise, especially in 2021, the net profit reached a peak of 607.5 million, showing a strong growth momentum. However, after the listing, Haike Xinyuan's performance fell off a cliff, with the net profit attributable to the parent company falling by 88.86% year-on-year in 2023 and the net profit attributable to the parent company in the first quarter of this year falling by 296.73% year-on-year, which is equivalent to an "ankle cut".
In response to the reasons for the decline in performance, Haike Xinyuan said that the main reason is that the market competition is fierce, and the decline in the sales price of lithium battery material products is much greater than the decline in the price of raw materials, resulting in a decline in the company's gross profit.
According to the 2023 financial report, Haike Xinyuan's main business is carbonate series and propylene glycol products, accounting for 69.45% and 24.33% respectively, and the gross profit margin of both products declined sharply last year, down 11.56% and 19.5% respectively, which became one of the main reasons for the company's revenue increase but not profit.
As of the end of the first quarter, the balance of accounts receivable of Haike Xinyuan was 915 million, higher than the revenue of the first quarter, and the funds that have not yet been withdrawn have also brought cash flow pressure to the enterprise, and the net cash flow generated by Haike Xinyuan's operating activities in the first quarter was -160 million yuan, and the data in 2023 was -62.076 million yuan, a year-on-year decrease of 112.72%.
The "moat" is not wide
The sense of smell in the capital market is keen, and there is a deeper meaning to the stock price breaking and the market value shrinking: the "moat" of Haike Xinyuan is not wide.
According to the financial report, Haike Xinyuan is one of the few domestic manufacturers that can provide 5 kinds of carbonate solvents at the same time, and the company's current electrolyte solvents have electronic grade dimethyl carbonate (DMC), methyl ethyl carbonate (EMC), diethyl carbonate (DEC), ethylene carbonate (EC), propylene carbonate (PC), and carbonate series products account for nearly 7% of revenue.
According to the GGII forecast, with the rapid development of the new energy vehicle market, China's electrolyte demand is expected to exceed 1.3 million tons in 2024, and the corresponding battery-grade solvent demand will also exceed 1.1 million tons.
At first glance, this is a large number, but at the same time as the demand is strong, the supply is also growing rapidly, and the industry has long had an overcapacity of electrolyte solvents. According to the data, in the first three quarters of 2023, the global demand for carbonate solvents will be 721,400 tons, an increase of 15.27%, the supply will be 909,900 tons, an increase of 31.30%, and the supply-demand ratio will further increase from 110.74% in 2022 to 126.13%.
In addition, in the main business of carbonate series products, Haike Xinyuan and another electrolyte solvent company from Shandong, Shenghua New Materials, overlapped. According to the financial report, the operating cost of Haike Xinyuan carbonate series products increased by 18.96% last year, and the gross profit margin decreased by 11.56% to 7.91%, while if you only look at the dimethyl carbonate, the operating cost of dimethyl carbonate products decreased by 14.49% and the gross profit margin decreased by 24.48% to 9% last year. In addition, from the perspective of sales, last year, the sales volume of dimethyl carbonate products alone reached 676,000 tons, while the sales volume of Haike Xinyuan carbonate series was 382,200 tons.
(Sales volume of dimethyl carbonate of Shenghua New Material)
(Sales volume of Haike Xinyuan carbonate series)
Shenghua New Materials said in the financial report that the company is currently the only enterprise in the electrolyte industry that extends the upstream to propylene oxide, and has its own production capacity of five carbonate solvents, which can achieve more than 95% of the basic raw materials self-supply, while the main raw materials of Haike Xinyuan come from cooperation with suppliers. Whether it is from the perspective of gross profit margin, sales volume, or raw material cost, Shenghua New Materials has more advantages.