\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 522 Jiangsu Zhongtian Technology Co.Ltd(600522) )
Event: the company released the announcement of main business data from January to February 2022. From January to February 2022, the company achieved a revenue of 6 billion yuan, a year-on-year increase of 17%; The net profit attributable to the parent company was about 800 million yuan, with a year-on-year increase of about 300%.
From January to February 2022, under the background of carbon neutrality, benefiting from the rapid development of offshore wind power and new energy, the operation quality of the company was significantly improved. From January to February, the revenue was 6 billion yuan, the net profit attributable to the parent company was about 800 million yuan, and the net interest rate was 13.3%. The profitability was greatly improved. It is expected that the increase in the proportion of high gross profit business, the rapid decline in the proportion of low gross profit non-ferrous metal trade and other businesses, and the continuous optimization of asset structure and quality. Under the background of “carbon neutrality”, promote the sustained and efficient growth of marine business
The company has been deeply engaged in the R & D, innovation and application promotion of the serialization, matching and engineering of submarine photoelectric composite cable products, breaking the international monopoly and ranking among the leading enterprises of ultra-high voltage submarine cables in the world. 1) Improving quality and efficiency to boost the rush of offshore wind power installation: 21h1 company completed several offshore wind power and submarine cable projects in China on schedule by means of technological innovation, technological transformation and speed-up, expansion and efficiency, and ensured the construction progress of several offshore wind power projects during the rush of installation. 2) Actively expand the overseas market and set a new high in the international market share: 21h1 company actively arranged the overseas market and obtained 17 orders in Canada, Vietnam, the Philippines, Indonesia, Qatar and other countries, totaling about US $130 million. 3) Strength forging achievements and won many honors: 21h1 company won many awards related to submarine cable projects.
Clarkson research data show that in October 2021, China surpassed the UK for the first time to become the world’s largest offshore wind power market, with a total installed capacity of 10.48gw. According to incomplete statistics, during the “14th five year plan” period, China’s total offshore wind power planning exceeded 60GW, which will gradually enter the stage of large-scale construction, and the industry development has entered a fast lane. From the perspective of prolonging the time dimension and space dimension (global market), the company has cooperated with Xinjiang Goldwind Science And Technology Co.Ltd(002202) , Haili wind power respectively. In the future, the whole industrial chain capacity of the company’s submarine cable & submarine cable laying & wind turbine construction will continue to enhance. In addition to maintaining China’s leading share, it is also for the sake of improving the general contracting and service capacity in the future sea competition.
In depth layout of the new energy industry, photovoltaic + energy storage business continued to make strong efforts
During the 14th Five Year Plan period, the company’s new energy industry will take “strengthening the integration of photovoltaic industry, expanding the advantages of energy storage industry and accelerating the layout of copper foil industry” as the development goal, deeply layout the new energy industry through the two-way integration of digitization and service, and customize all-round green energy solutions for customers. 1) The company’s photovoltaic industry gives full play to the advantages of market resources and cooperates in the operation of photovoltaic general contracting projects: 21h1 successfully landed a 50MW photovoltaic general contracting project, paving the way for the opening of the national market. On the other hand, based on the development of photovoltaic resources, the investment of central enterprises is introduced to realize Jiangsu Zhongtian Technology Co.Ltd(600522) general contracting and leverage the expansion of “new energy + energy storage” business outside the region. The reputation of Zhongtian fluorine membrane in the component end and major certification institutions continues to rise, and the supply advantage is significantly improved. 2) Based on the large-scale energy storage market and the backup power supply market, the energy storage field has developed comprehensively outside China: since 2021, Zhongtian energy storage technology has participated in design and bidding projects, with a cumulative landing of more than 250mwh. In terms of backup power supply, we focus on the communication supporting base station, firmly grasp the 5g commercial opportunity and focus on the supply of supporting backup power supply system. In the joint centralized bidding project of 21h1 China iron tower and China Telecom Corporation Limited(601728) lithium iron phosphate battery for backup power, Jiangsu Zhongtian Technology Co.Ltd(600522) relying on the advantages of product technology and supply performance over the years, we won the bid with the third place, with a winning share of 349mwh.
Profit forecast and investment suggestions: on the whole, the company focuses on communication + energy, optical communication, power transmission, marine business and new energy. Among them: 1) the supply-demand relationship of optical fiber and optical cable continues to improve, showing a continuous upward trend, and the performance elasticity of price rise is expected. As one of the leaders, the profitability of the business is expected to continue to grow upward; 2) With the joint efforts of the industrial chain, offshore wind power is expected to usher in affordable Internet access in the future. Under the dual carbon goal, the broad space of the industry in the future is expected to be fully released. As the leader of China’s submarine cable & Offshore Engineering, the company is expected to fully benefit. We emphasize that the space and prosperity of offshore wind must be based on the dimension of the next 5-10 years, and the prospect is very considerable, And pay attention to the global layout and global market of the company; 3) With ten years of deep cultivation of new energy and the background of high prosperity of the industry, the company’s energy storage + copper foil + photovoltaic is expected to usher in an all-round and rapid development opportunity; 4) The power business is highly competitive and is expected to fully benefit from the construction of new power system and the growth of power grid investment in the future, which is expected to show a stable and rapid growth trend. It is estimated that the net profit of the company in 21-23 years is 123 million yuan, 3.85 billion yuan and 4.7 billion yuan, corresponding to 15 times PE in 22 years. Reiterate the “buy” rating!
Risk warning: upstream raw materials continue to maintain high price risk, industry technology development is less than expected risk, production expansion progress is less than expected risk, project promotion progress is less than expected risk, business data is the company’s preliminary accounting, and the annual performance cannot be calculated based on this
