\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 481 Shuangliang Eco-Energy Systems Co.Ltd(600481) )
Event overview
The company issued the annual report of 2021. In 2021, the company realized an operating revenue of 3.830 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%, and the net profit not attributable to the parent company was 238 million yuan, a year-on-year increase of 135.71%.
Analysis and judgment:
Polysilicon reduction furnace has a bright revenue, and the monocrystalline silicon business has made preliminary progress
Benefiting from the promotion of the “double carbon” policy and the improvement of the prosperity of the photovoltaic industry, the revenue of the company’s energy-saving and water-saving business increased significantly, and the orders of polysilicon reduction furnace increased by more than 7 times year-on-year, resulting in a significant increase in the company’s revenue and net profit attributable to the parent company in 2021. In a single quarter, 21q4 achieved a revenue of 1.562 billion yuan, a year-on-year increase of + 84.28% and a month on month increase of + 53.47%; The net profit attributable to the parent company was 133 million yuan, a year-on-year increase of + 61.78% and a month on month increase of + 78.3%; The net profit after deduction of non return to parent company reached 83 million yuan, with a year-on-year increase of + 23.91% and a month on month increase of + 18.87%. By product, in 2021, the company’s Bromine refrigerator (heat pump) business revenue was 1.194 billion yuan, a year-on-year increase of + 40.02%, and the proportion of revenue decreased by 9.99 percentage points to 31.19%; The revenue of air cooling business was 954 million yuan, a year-on-year increase of 32.13%, and the proportion of revenue decreased by 9.94 percentage points to 24.9%; The revenue of heat exchanger was 410 million yuan, a year-on-year increase of + 59.29%, and the proportion of revenue decreased by 1.72 percentage points to 10.71%; The revenue of polysilicon reduction furnace business reached 979 million yuan, a year-on-year increase of + 453.60%, accounting for 25.55%. In addition, the company’s new business has made initial progress in 21q4. 182mm and 210mm square ingots / silicon wafers have been shipped. The revenue of monocrystalline silicon and its products has reached 235 million yuan, accounting for 6.14% of the revenue.
The expense rate decreased significantly and the profitability was further improved
In terms of profitability, the company’s gross profit margin decreased slightly, dragged down by the rise in the price of raw materials. In 2021, the company’s gross profit margin was 27.84%, a year-on-year decrease of 1.65 PCT; The net interest rate was 8.87%, up 2.32pct year-on-year. In terms of products, the gross profit margin of bromine cooler (heat pump) / air cooling of the company was 28.12% / 24.8% respectively, with a year-on-year decrease of 2.9/2.18pct respectively, the gross profit margin of heat exchanger / polysilicon reduction furnace was 31.68% / 38.54% respectively, with a year-on-year increase of 1.37/5.81pct respectively, and the gross profit margin of monocrystalline silicon and its products was – 12.05%.
In 2021, the company’s expense ratio was 16.33%, a year-on-year decrease of 4.78 PCT, mainly due to the decrease of sales / management expense ratio, which decreased by 3.98/1.50 PCT to 6.22% and 4.60% respectively. The R & D expense rate and financial expense rate of the company in 2021 were 4.34% / 1.17% respectively, with a year-on-year increase of + 0.16/0.54pct respectively. Benefiting from the decline of expense rate, the company’s net profit margin increased by 2.32pct to 8.87% in 2021.
Investment advice
The company’s new energy equipment business is full and the silicon wafer business continues to develop well. We maintain the company’s profit forecast for 20222023 and increase the profit forecast for 2024. It is estimated that from 2022 to 2024, the company will achieve a revenue of RMB 8.595/13.35/17.579 billion, with a year-on-year increase of 124.4% / 51.7% / 34.9% respectively; The net profit attributable to the parent company was 711 / 1215 / 1723 million yuan respectively, with a year-on-year increase of 129.2% / 71.0% / 41.8% respectively; The corresponding EPS from 2022 to 2024 is 0.44/0.75/1.06 yuan, corresponding to the closing price of 12.12 yuan / share on March 7, 2022, and the PE from 2022 to 2024 is 28 / 16 / 11 times respectively. We maintain a “buy” rating.
Risk tips:
The prosperity of photovoltaic industry is less than expected, the progress of silicon wafer project is less than expected, and the growth of energy-saving and water-saving business orders is less than expected
