\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 582 Tiandi Science & Technology Co.Ltd(600582) )
Ping An View:
The company has complete sectors and serves the whole life cycle of coal. The company is a listing platform for transformed enterprises of scientific research institutes. Its products serve the whole life cycle of geological exploration – coal mine construction – coal mining – Transportation – clean coal. Its goal is to develop into a complete set of coal machinery equipment, safety equipment and demonstration engineering service provider providing “safe, efficient and clean” production integration solutions for the coal industry.
The operation of the company continued to improve. From 2015 to 2020, the company’s operating revenue continued to grow. After 2018, the net profit attributable to the parent company increased significantly. In the first three quarters of 2021, the company’s operating revenue increased by 22.09% year-on-year, and the net profit attributable to the parent company increased by 32.24% year-on-year. The growth rate was significantly accelerated, mainly benefiting from the development of industry intelligence and the rise of coal prices.
Adhere to scientific and technological innovation and deeply cultivate intelligent mining. The talent team and scientific and technological innovation system have been improved, scientific research funds have been continuously invested, and a large number of major scientific and technological innovation achievements have been achieved; At the same time, with the help of scientific research and industrial strength of the group company, a research mechanism of “industry university research integration” is formed. The company is deeply engaged in intelligent mining and integrated development in intelligent business.
Tight supply and demand of coal, capacity construction or orientation cycle. Affected by the resumption of work after the holiday and the decline of imported coal, coal supply and demand are tight. Recently, due to geopolitical factors, overseas coal prices have risen rapidly, and some Chinese companies using imported coal may switch to Chinese coal. New production capacity and intelligent construction will support the capital expenditure of the industry. Five coal mine projects have been approved in the first two months of 2022. The release of output and production capacity is the fundamental way to alleviate the high coal price. It is expected that the country will further release coal mine production capacity in the future, and coal mine intelligence will become a new direction of investment.
Anthracite companies benefit from rising coal prices. The company owns 50.66% equity of Tiandi Wangpo coal industry (with a production capacity of 3 million tons / year). Wangpo coal industry, with advanced equipment and technology, is a base for Tiandi Science & Technology Co.Ltd(600582) to demonstrate advanced technology. The price of anthracite is supported by the demand for heating and coal chemical industry, and the market price rose sharply year-on-year from January to February. The company’s coal price is mainly based on the market price, which will benefit from the rise of coal price.
Investment suggestion: from the perspective of the coal industry, the coal price is at a high level, the investment in fixed assets continues to grow, the demand for coal machinery is relatively strong, and the production capacity construction cycle may come Tiandi Science & Technology Co.Ltd(600582) is an industry university research integration company serving the whole life cycle of coal, with complete business and high-quality products; With 3 million tons of smokeless coal mines per year, it will benefit from the rise of coal prices; China is expected to be in a leading position in intelligent mining in the future; We predict that the company’s EPS from 2021 to 2023 will be 0.44, 0.53 and 0.63 yuan respectively, with a year-on-year increase of 33.7%, 19.8% and 18.5% respectively, and the corresponding PE will be 10.4, 8.7 and 7.3 times respectively. The first coverage gives the company a “recommended” rating.
Risk tips: 1) affected by macro situation factors, there may be a downturn in coal consumption, resulting in a sharp decline in coal consumption, resulting in a slowdown in fixed asset investment; 2) The decline of overseas coal prices and the increase of imported coal have led to excess coal supply in China, affecting the income of coal machinery and safety equipment of the company; 3) In case of safety accidents in the company’s machinery manufacturing, coal production and technical services, it may affect the normal development of business; 4) After the withdrawal of some backward production capacity, the company may have the problem of difficult recovery of some accounts receivable, or the risk of new accounts receivable problems caused by the decline of profits in the coal industry.
