\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 481 Shuangliang Eco-Energy Systems Co.Ltd(600481) )
Event: the company released its annual report for 2021, and achieved a revenue of 3.83 billion yuan, a year-on-year increase of + 84.87%; The net profit attributable to the parent company was 310 million yuan, a year-on-year increase of + 125.68%; Deduct non net profit of 238 million yuan, a year-on-year increase of + 135.71%; EPS0. 19 yuan. In addition, it was announced that the purchase contracts with Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) , Liancheng Kekes single crystal furnace totaled 1.43 billion yuan.
The traditional energy-saving and water-saving business grew steadily, and the heat exchanger benefited from the expansion of downstream silicon production. In 2021, the company’s energy-saving and water-saving business achieved a revenue of 2.558 billion yuan, a year-on-year increase of + 39.62%. Sub products: 1) the revenue of bromine refrigerator was 1.194 billion yuan, a year-on-year increase of + 40.02%; The sales volume was 626 units, a year-on-year increase of + 38.5%. 2) The revenue of air cooler was 954 million yuan, a year-on-year increase of + 32.13%; The sales volume was 7668 units, a year-on-year increase of + 39.04%. 3) The revenue of heat exchanger was 410 million yuan, a year-on-year increase of + 59.29%; The sales volume was 643 units, with a year-on-year increase of + 65.30%. The growth of heat exchanger business is greater. On the one hand, it is due to the development opportunity of “double carbon” goal and the rapid recovery of international business; On the other hand, it also benefited from the expansion of downstream silicon material production. In 2021, the company successively signed 346 million yuan orders with four silicon material enterprises, Tongwei / Tebian / Daquan / Lihao.
The radical expansion of downstream silicon material production, the performance of reduction furnace ushered in an explosion, and the marginal optimization of product structure. In 2021, the company’s reduction furnace business achieved a revenue of 979 million yuan, a year-on-year increase of + 453.6%; The annual sales volume was 357 units, of which 202 units were delivered in the fourth quarter, accounting for 57% of the annual sales volume. In terms of profit, due to the scale effect, the net profit of reduction furnace in 21 years is about 220 million yuan, the net interest rate is more than 22%, and the profit of single unit is about Shanghai Pudong Development Bank Co.Ltd(600000) yuan (including reduction furnace parts, etc.). The explosion of reduction furnace performance benefited from the expansion of downstream polysilicon production. In 2021, large orders were announced, with a total of 1.7 billion yuan, an increase of about 7 times over 2020. The average price of a single reduction furnace of the company also increased. The average price in the first three quarters of 21 years was 2.92 million / set, an increase of 12% over 2020, due to the partial conversion of the inner cylinder material into nickel base alloy and the rise of raw materials. In 21 years, the company completed the research and development of super large 72 pair rod reduction furnace and the development and delivery of the first silver electronic polysilicon evaluation furnace, and the business quality of reduction furnace was also optimized. Combined with the signing and delivery in 21 years, the performance of reduction furnace is expected to continue to grow in 2022.
Silicon wafer production capacity continues to climb, and turning losses into profits is imminent. In 21 years, 35.42 million silicon wafers were shipped, with a revenue of 235 million yuan and a gross profit margin of – 12%, mainly due to the company’s new production capacity still climbing and limited shipments. The company announced that the purchase contract of single crystal furnace amounted to 1.43 billion yuan (810 million yuan for Jingsheng + 620 million yuan for Caicos), and it is expected that the loan will not exceed 5 billion yuan through bank loans in 22 years, so as to fully ensure the construction of phase II production capacity and accelerate the progress of investment and construction. With the gradual release of production capacity and the superposition of long sales orders, silicon wafers are expected to achieve full production and sales throughout the year and turn losses into profits.
Profit forecast and investment suggestions: it is expected that the net profit attributable to the parent company will maintain a compound growth rate of 83.68% in the next three years and maintain the “buy” rating.
Risk warning: the expansion of silicon production is not as expected; The company’s capacity investment and construction is less than expected; The cost of raw materials has risen.
