\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 481 Shuangliang Eco-Energy Systems Co.Ltd(600481) )
The performance of the annual report increased rapidly and the return on net assets increased significantly
The company released its 2021 annual report on the evening of March 7. In 2021, the company achieved an operating revenue of 3.83 billion yuan, a year-on-year increase of 84.87%, and a compound growth rate of 23.10% in two years; The net profit attributable to the parent company was 310 million yuan, with a year-on-year increase of 125.68% and a two-year compound growth rate of 22.47%; The annual gross profit margin was 27.84%, with a year-on-year increase of -1.65pct; The net interest rate was 8.87%, year-on-year + 2.32pct; The roe of the company was 13.47%, with a year-on-year increase of + 7.33pct; The total assets were 8.991 billion yuan, a year-on-year increase of 118.82%; The company’s asset liability ratio was 72.66%, with a year-on-year increase of + 26.50pct.
This high performance increase mainly benefited from the national “double carbon” strategy. The company’s energy-saving and water-saving system and photovoltaic new energy industry have ushered in huge development opportunities. The net interest rate, asset turnover rate and equity multiplier all contributed to the growth of roe. The changes of the three factors increased roe by 1.36pct, 0.93pct and 5.04pct respectively, and the contribution of equity multiplier was the highest.
Due to the substantial increase of the company’s liabilities in the current period, the debt ratio at the end of the period exceeded 70%. Among the total asset growth of 4.882 billion yuan, the growth of liabilities contributed 4.636 billion yuan, of which current liabilities increased by 3.790 billion yuan. Among current liabilities, contract liabilities (increased by 611 million yuan), short-term borrowings (increased by 827 million yuan), notes payable and accounts payable (increased by 1.041 billion yuan) and other payables (increased by 1.072 billion yuan, mainly for infrastructure projects and equipment, increased by 1.089 billion yuan), all of which increased by 3.55 billion yuan in the current period, It basically corresponds to the growth of construction in progress (an increase of 1.872 billion yuan), fixed assets (an increase of 674 million yuan), inventory (an increase of 609 million yuan) and monetary capital (an increase of 692 million yuan) (the total increase of the four in this period is 3.847 billion yuan). During the reporting period, the company officially carried out phase I 20GW large-size monocrystalline silicon wafer business, with a total investment of 7.487 billion yuan. Therefore, it is normal for the company’s debt ratio to increase significantly in this period. Considering that the company’s plan to raise 3.488 billion yuan has been approved by the CSRC in January 2022, and the cash flow brought to the company by the monocrystalline silicon business itself, we believe that the sharp increase in the company’s debt ratio in this period will not have a great impact on the normal operation in the future.
The silicon wafer business is initially reported, and the future profit growth can be expected
The company established Baotou subsidiary in February 2021 and officially launched phase I 20GW large-size monocrystalline silicon wafer business. During the reporting period, the construction of the workshop of single crystal No. 1 plant was basically completed, and the procurement, installation, commissioning and production preparation of all equipment and instruments were advancing in an orderly manner. In June 2021, the company’s first large-size monocrystalline silicon rod was successfully baked. In October 2021, small batch equipment commissioning of large-size monocrystalline silicon rod has been realized.
The company disclosed the monocrystalline silicon business for the first time in its 2021 annual report. In this period, the company’s monocrystalline silicon revenue is 235 million yuan, the cost is 263 million yuan, and the gross profit margin is – 12.05%. The sales volume of monocrystalline silicon is 35.42 million pieces, and the average price of each piece is 6.64 yuan (excluding tax). Based on 182 silicon wafers, 35.42 million silicon wafers correspond to a sales volume of no more than 0.27gw. In the monocrystalline silicon business cost of this period, the polycrystalline silicon material is 182 million yuan, accounting for 77.20% of the revenue. The reason for the negative gross profit of monocrystalline silicon business in this period may be that, on the one hand, the price of silicon wafer was in the downward range in the fourth quarter of 2021. The price of 182 silicon wafer at the end of December was 5.7 yuan / piece, 17% lower than that at the beginning of October; On the other hand, the main reason is that the company’s production capacity is still in the climbing stage, and the scale effect needs to be further improved, resulting in negative gross profit. From the current production and marketing situation, the proportion of production and marketing of the company exceeds 93%.
With the acceleration of the construction and operation progress, the company strives to complete the construction of argon recovery workshop, cleaning workshop, 220kV substation and single crystal plant 2 within the first quarter of 2022, and realize the full operation of single crystal plant 1 (a total of 5 Aluminum Corporation Of China Limited(601600) furnace single crystal furnaces, with an estimated capacity of about 7gw). With the gradual increase of the company’s capacity utilization and the recovery of silicon wafer price in the first quarter of 2022, the company’s monocrystalline silicon business is expected to make profits in the future.
New equipment purchase orders were signed, and the silicon wafer production capacity was accelerated
On the same day, the company announced the purchase order of equipment and purchased 1.43 billion yuan of single crystal furnace equipment from Liancheng Kekes and Zhejiang Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) respectively. Previously, the company has purchased 3.088 billion yuan of single crystal furnace equipment, and the corresponding production capacity has exceeded 20GW. Therefore, this purchase may prepare for the company’s 40gw single crystal silicon phase II project (20GW), indicating the acceleration of the company’s silicon wafer production capacity expansion.
Increase the amount of 5 billion foreign loans to supplement the company’s operating capital needs
On the same day, the company also issued an announcement on increasing the amount of foreign loans. The investment of the company’s phase II project (20GW) is expected to be 6.2 billion yuan. In addition to the construction investment of phase I Project (20GW), in order to meet the actual capital needs of the company’s operation, the company plans to borrow no more than 5 billion yuan in 2022. The current debt ratio of the company is 72.66%. If the loan amount of RMB 5 billion is fully withdrawn, the asset liability ratio of the company will reach about 82.43%, which may affect the solvency of the company. However, if the equity fund of 3.488 billion yuan proposed to be raised by the company is considered, the asset liability ratio of the company will be reduced to 65.98%, and the asset structure will be further optimized. At the same time, when the company’s profit is expected to increase significantly, taking the form of debt rather than equity financing for the capital demand of 5 billion yuan will help to protect the interests of the original shareholders and prevent the earnings per share from being diluted.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 906 million yuan, 1386 million yuan and 1.66 billion yuan respectively, corresponding to the current PE of 22x / 14x / 12x respectively, which will continue to be recommended.
Risk tips
Macroeconomic downturn and market demand decline; The price of raw materials fluctuates sharply; Risk of policy changes in the photovoltaic industry.
