“Since the beginning of the year, we have actively resumed work and production, which has made a good start for the steady growth of annual performance. The company has also laid a solid foundation for the steady growth of medium and long-term performance through measures such as capacity expansion, transformation and upgrading.” Wu Jianfei, the board secretary, told the China Securities Journal on February 15. The performance forecast released by Nanjing Yunhai Special Metals Co.Ltd(002182) shows that the company’s performance in the first quarter of 2022 increased significantly year-on-year. This is a microcosm of the steady growth of listed companies.
The plan of the year is spring. The reporter of China Securities News learned that since this year, listed companies have actively resumed work and production, laying the foundation for steady growth of annual performance. Many listed companies have accelerated the expansion of production capacity and promoted the implementation of projects, so as to make a layout for the medium and long-term development of the company. In addition, some listed companies actively optimize product structure, accelerate transformation and upgrading, extend the industrial chain, and look for “new drivers” of steady growth.
resumption of work and production guarantee growth
“We have also basically maintained continuous production during the Spring Festival holiday. The original magnesium and magnesium alloy production line has not stopped. The deep processing business line has been on six days’ leave and has done normal maintenance. It has resumed production on the seventh day of the lunar new year. Now there are many orders and the production line is not arranged enough. I hope to make a good start for the steady growth of annual performance.” Wu Jianfei told the China Securities Journal.
Thanks to the above efforts, Nanjing Yunhai Special Metals Co.Ltd(002182) 2022 achieved a “good start”. Recently, the performance forecast of the first quarter report of 2022 released by the company shows that on the basis of a year-on-year increase of 106.53% in net profit in 2021, the company started “acceleration” in the first quarter of 2022 and is expected to realize a net profit of 270 million yuan to 370 million yuan, a year-on-year increase of 257.94% to 390.52%.
Although the first quarter is an off-season for many industries, listed companies still strive to explore the market and maintain stable production. Lb Group Co.Ltd(002601) Zhang Haitao, the Secretary of the board of directors, told the China Securities Journal: “the company didn’t stop work during the Spring Festival holiday, and the capacity utilization rate was more than 90%. For the titanium dioxide industry, although the first quarter was the off-season in China, the demand in the foreign market was good. The company paid close attention to the prosperous seasons in the overseas market and stepped up production.”
In order to ensure the smooth resumption of work and production, listed companies strengthen recruitment. Macheng, Hubei Province recently held a farewell ceremony for the newly recruited employees of Luxshare Precision Industry Co.Ltd(002475) (Hubei) Co., Ltd. to go to Baoding, Hebei Province for “point-to-point” training. A total of more than 300 newly recruited employees from villages and towns of Macheng successfully boarded the special train to Baoding after taking preventive measures such as body temperature measurement, nucleic acid detection and health code verification.
It is worth mentioning that listed companies whose production is blocked due to covid-19 pneumonia have accelerated the pace of resumption of work and production and made efforts to make up for production. In Xi’an high tech Zone, the reporter of China Securities Journal learned from Fujida that after Xi’an was “unsealed”, the company resumed work and production on January 25. In order to ensure production and delivery and make up for the progress delayed by the epidemic, the company has almost no rest during the Spring Festival holiday.
“We should not only make up for last year’s losses, but also make a good start for this year’s steady growth.” The relevant person in charge of Fujida told the China Securities Journal that affected by the epidemic in Xi’an in the early stage, the company has a backlog of orders. Coupled with the new orders in 2022, the amount of orders on hand has exceeded 400 million yuan. At the beginning of the year of the tiger, through efforts, the company has completed 50% of the annual business plan.
accelerate production expansion and promote growth
While actively returning to work and production at the beginning of the year, many listed companies accelerated the pace of capacity expansion, laying a solid foundation for the steady growth of medium and long-term performance.
Taking Titan Wind Energy (Suzhou) Co.Ltd(002531) as an example, the company recently revealed on the investor interaction platform: “from 2022 to the beginning of 2023, the five tower bases of Puyang, Tongliao, Qian’an, Shayang and Hepu will be added with a total capacity of about 500000 tons / year. Among them, the company will add three blade production bases of Shangdu, Qian’an and Shayang with a total capacity of about 3300 pieces / year in 2022.”
Many listed companies accelerated the promotion of projects under construction. Dalian Insulator Group Co.Ltd(002606) said that the new plant invested by the company in Jiangxi is under orderly construction and is expected to be put into operation by the end of 2022 or the beginning of 2023. Chengdu Wintrue Holding Co.Ltd(002539) it is estimated that the 600000 ton slow-release compound fertilizer project in Songzi base will be completed and put into operation in 2022, and the business scale of compound fertilizer will be further expanded. Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636) said that the second and third phases of the company’s high-end capacitor base in Xianghe Industrial Park are advancing according to the project plan.
Since the beginning of the year, many listed companies have prepared “ammunition” for production expansion through refinancing and other means. According to the statistics of China Securities Journal, since 2022, a total of 56 A-share listed companies have completed refinancing plans, raising a total of about 139.669 billion yuan.
At the beginning of 2022, Tianqi Lithium Corporation(002466) application materials for initial public offering of overseas listed foreign shares (H shares) have been accepted by the China Securities Regulatory Commission, and then submitted a prospectus to the Hong Kong stock exchange. At present, under the background of the rapid development of new energy vehicle industry, the price of lithium salt as the upstream raw material of lithium battery has exceeded 400000 yuan / ton, Tianqi Lithium Corporation(002466) at this time, it is timely to choose H-share financing.
“This will help the company further optimize its capital structure, reduce leverage and financial risks, reduce financial expenses and enhance profitability. Benefiting from the rapid development of downstream markets and strong demand for the company’s products, this will also help the company seize industry opportunities and further develop its core business.” Xia Juncheng, President of Tianqi Lithium Corporation(002466) said.
looking for “new kinetic energy” for steady growth
In addition to actively returning to work and accelerating the expansion of production, listed companies also look for “new kinetic energy” for steady growth by adjusting product structure, accelerating transformation and upgrading and extending the industrial chain.
Among them, adjusting the product structure has become the “ballast stone” for many listed companies to tap their internal potential and promote steady growth of their performance. Taking Nanjing Yunhai Special Metals Co.Ltd(002182) as an example, for the significant growth of net profit in the first quarter of 2022, the company pointed out in the performance forecast that in the first quarter of 2022, compared with the same period last year, the sales price of the company’s products increased, the product structure was optimized, the gross profit margin increased, and the performance increased significantly year-on-year.
“The company has been trying to adjust the product structure and increase the proportion of high-end products and deep-processing products. Magnesium and aluminum materials continue to expand in high-end fields, so as to improve the gross profit margin of the company’s products. For example, high-performance aluminum alloy bars used in wheel hubs and 3C products have much higher requirements than those used in construction, so the price is also high.” Wu Jianfei said.
Many listed companies contribute to steady growth by promoting intelligent transformation and upgrading. Take Shandong Linglong Tyre Co.Ltd(601966) as an example, on January 6, the company signed a new retail phase III contract with Tencent cloud and Huazhi intelligence. The three parties will integrate their advantageous capabilities and resources, comprehensively upgrade the Linglong smart marketing platform, and build a benchmark for digital transformation of the tire industry by building high-level infrastructure such as industry data platform and cloud computing base.
Shandong Linglong Tyre Co.Ltd(601966) the relevant person in charge told the reporter of China Securities Journal that in 2019, the company cooperated with Tencent cloud and Huazhi intelligence for the first time to build the world’s first industrial Internet platform for tire industry and built a smart marketing platform connecting “factory dealer store consumer”. In 2020, Linglong smart retail platform helped the company’s performance rise against the trend in the environment of the impact of the epidemic and heavy damage to the tire industry.
There are also many listed companies to create new performance growth points by extending the industrial chain. Taking Luxshare Precision Industry Co.Ltd(002475) as an example, in recent years, under the background of the rapid development of new energy vehicles, the company has actively transformed to automotive electronics. The company recently announced that the company signed the strategic cooperation framework agreement with Chery group and plans to jointly establish a joint venture with Chery new energy to specialize in the R & D and manufacturing of new energy vehicles.
” Luxshare Precision Industry Co.Ltd(002475) the experience and market reputation accumulated in consumer electronics over the years can cooperate with Chery to develop another Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) – making good cars for others. This is to meet the needs of market development.” Luxshare Precision Industry Co.Ltd(002475) said Wang Laichun, chairman and general manager.
