\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 01 Tangshan Jidong Cement Co.Ltd(000401) )
Core view
Profits decreased slightly and the proportion of dividends increased significantly. In 2021, the company achieved a revenue of 36.338 billion yuan, an increase of 2.42% and a net profit attributable to the parent company of 2.810 billion yuan, a decrease of 1.40% and a net profit attributable to the parent company of 2.419 billion yuan after deducting non profits, a decrease of 12.78% and a basic EPS of 1.769 yuan / share. The decline in performance was mainly affected by the sharp rise in coal prices and the decline in cement clinker sales. Non recurring profits and losses mainly came from the income of production capacity indicators. The company plans to pay 7.5 yuan (including tax) in 10, with a total cash dividend of 1.994 billion and a dividend rate of 70.96%, demonstrating the company's confidence in the steady progress of future business development.
The profit level is under slight pressure, and the asset and debt level continues to be optimized. In 2021, the company sold 99.72 million tons of cement clinker, a year-on-year decrease of 7.1%, mainly due to the decline in real estate and infrastructure demand in the second half of last year, as well as the decline in output due to dual control of energy consumption and power and production restriction. The company's annual revenue per ton of cement clinker increased by 33.37 yuan to 320.37 yuan year-on-year, mainly due to the sharp rise in prices due to insufficient supply in the second half of the year; Affected by the sharp rise in coal prices, the annual ton cost increased by 45.99 yuan to 235.21 yuan, resulting in a decrease in ton gross profit of 12.61 yuan to 85.17 yuan. The company actively promoted the enterprise to "cultivate excellence" and further strengthened the cost control. After excluding the adjustment of transportation cost in sales expenses, the cost rate decreased by 0.48pct to 14.65% in 2021, of which the financial cost rate decreased by 0.69pct to 1.81%, mainly due to the reduction of the scale of interest bearing liabilities and the decline of financing interest rate. With the optimization of capital and debt structure, the asset liability ratio further decreased to 44.01%. During the reporting period, the net cash flow from operating activities of the company was 6.211 billion yuan, a year-on-year decrease of 28.8%, mainly due to rising costs and other factors.
The asset integration was completed and the industrial layout remained optimized. During the reporting period, the company completed the absorption and merger of 47.09% equity of the joint venture Jinyu Tangshan Jidong Cement Co.Ltd(000401) (Tangshan) Co., Ltd., which is conducive to the further improvement of management efficiency, asset quality and profitability in the future. The company actively promoted the M & A integration and capacity replacement of the cement industry. During the reporting period, the company completed the M & A of Hongwei cement assets and the equity acquisition of Shanxi China Resources Fulong cement. The Tongchuan 10000 ton line was completed and put into operation, and other capacity replacement and relocation projects were progressing smoothly; The aggregate production capacity increased by 10 million tons.
Risk warning: the increase of supply exceeds expectations; The implementation of the project is not as expected; The epidemic situation is repeated.
Investment advice: high dividend yield provides a margin of safety and maintains the "buy" rating.
Under the background of "steady growth", the construction process of Beijing Tianjin Hebei integration, xiong'an new area and Beijing Urban sub center is expected to be accelerated. The company's clinker production capacity accounts for more than 50% of the total production capacity of Beijing Tianjin Hebei region and has a strong regional voice. In the future, it will continue to expand the production capacity of cement and aggregate, strengthen green transformation and enhance development toughness. At present, the dividend yield of the company is about 6.9%, providing a good margin of safety. It is estimated that the EPS in 202224 will be 1.51/1.62/1.70 yuan / share respectively, and the corresponding PE will be 7.2/6.7/6.4x, maintaining the "buy" rating.
