\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 01 Tangshan Jidong Cement Co.Ltd(000401) )
Event:
Tangshan Jidong Cement Co.Ltd(000401) released the annual report of 2021: in 2021, the company achieved an operating revenue of 36.3 billion yuan, a year-on-year increase of 2.42%; The net profit attributable to shareholders of listed companies was 2.81 billion yuan, a year-on-year decrease of 1.40%.
Key investment points:
The annual revenue was 36.3 billion yuan, with a slight increase in stability, rising fuel costs and a slight decline in profits. During the reporting period, as the comprehensive sales volume of cement and clinker of the company decreased by 7.08% year-on-year, but the overall cement price of the whole year was at a high level, the annual operating revenue was 36.3 billion yuan, a slight increase of 2.42% year-on-year. As the rise of cement price mainly comes from the rise of upstream coal price, the company’s annual net profit attributable to the parent company was 2.81 billion yuan, a year-on-year decrease of 1.4%, the overall gross profit margin was 26.89%, a year-on-year decrease of 5.74%, the net profit margin was 11.51%, and a slight year-on-year decrease of 3.1%.
The completion of the restructuring will consolidate North China’s leading position and is expected to continue to improve the supply and demand pattern of beneficiary regions. During the reporting period, the company absorbed and merged Jinyu Jidong joint venture and included all cement assets originally belonging to Bbmg Corporation(601992) and Tangshan Jidong Cement Co.Ltd(000401) and owned 110 million tons of clinker and 176 million tons of cement, making it the largest cement manufacturer in northern China. In 2021, the year-on-year growth rate of total fixed investment in major regions of North China was positive. In 2022, a large number of construction projects in xiong’an new area will drive the demand for cement. On the supply side, the production capacity in North China is more limited. At the same time, the company further improves the market share in the region and consolidates the leading position in the region. With the improvement of supply and demand pattern and market concentration in North China, the company, as a regional leader, will continue to benefit.
Profit forecast and investment rating: the company’s revenue increased slightly, the profit was under pressure temporarily, the supply and demand pattern of the main market in North China continued to improve, and the leading position of the company was stable. We expect that the cost side coal price is expected to continue to decline this year, while the cement price will maintain the current level and tend to be stable. It is predicted that the company’s revenue from 2022 to 2024 will be 40.072 billion yuan, 42.533 billion yuan and 44.774 billion yuan respectively, and the net profit attributable to the parent company will be 3.444 billion yuan, 3.740 billion yuan and 4.050 billion yuan respectively, corresponding to 7.86, 7.23 and 6.68 times of PE. The company will be rated as “overweight” for the first time.
Risk tip: coal prices continue to rise; Cement prices fell sharply; Shrinking demand for cement; The investment in infrastructure projects is less than expected; The negative impact of the epidemic on the economy has exceeded expectations..
