\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
The company released the annual report of 2021: in 2021, the company’s revenue / net profit attributable to parent company / net operating cash flow was 23.6 billion / 3.15 billion / 5.68 billion, with a year-on-year increase of + 18.6% / + 21.0% / + 7.6% respectively. Among them, the revenue of 4q21 was 6.45 billion, with a month on month ratio of + 5.2% / + 15.0%, and the net profit attributable to the parent company was 550 million, with a month on month ratio of + 117.5% / – 33.4%. This year, the company plans to distribute cash dividends of RMB 10 per 10 shares.
1. Revenue side: 1) the volume and price of the main business rise together. In 2021, the sales area of auto glass of the company was + 14.8%, and the average price was + 3.8%. The performance of the company exceeded the industry (global auto sales increased by + 3.1% in 2021), and the market share increased and the logic of product upgrading continued to be verified; 2) The trend of American factories is good. In 2021, the revenue of American companies was 3.89 billion, a year-on-year increase of + 19.7%.
2. Profit side: adjusted statement based on the annual report announcement, 1) gross profit margin. The gross profit margin of the company in 2021 was 35.9%, with a year-on-year increase of -0.6pct. Among them, the sea freight increased by 231 million yuan year-on-year (negative impact 0.98 PCT), and the soda ash increased by 107 million yuan year-on-year (negative impact 0.45 PCT); 2) Cost rate. In 2021, the proportion of sales expenses / administrative expenses / financial expenses / R & D expenses of the company was – 0.4pct / – 1.3pct / + 0.4pct / + 0.1pct respectively year-on-year, of which the increase in financial expense rate was mainly due to the increase of exchange loss by 110 million year-on-year; 3) Profit margin. The company achieved a good year-on-year increase in the cost of raw materials and the net profit of 3 PCT in 2023.
Leading product layout + deep integration of industrial chain, fully benefiting from the trend of automotive intelligence. The company continues to promote the development of automotive glass in the direction of “safety and comfort, energy conservation and environmental protection, beauty and fashion, and intelligent integration”. The revenue of high value-added products such as intelligent panoramic sky glass, dimmable glass, head up display glass, ultra insulating glass, lightweight ultra-thin glass, and coated heating glass has increased by 7.7% in recent three years, of which new products such as sky glass account for 20% of new orders. We believe that the company’s high value-added product line layout + in-depth industrial chain layout mode (self built float glass factory) has significant competitive advantages, and the company is expected to fully benefit from the trend of automotive intelligence.
Investment suggestion: we expect the company to achieve operating revenue of 29.05 billion yuan, 34.92 billion yuan and 41 billion yuan in 2022, 2023 and 2024, corresponding to net profit attributable to the parent company of 4.27 billion yuan, 5.25 billion yuan and 6.3 billion yuan. Based on today’s closing price, PE is 23.2 times, 18.8 times and 15.7 times. It is covered for the first time and given a “buy” rating.
Risk tip: the conflict between Russia and Ukraine exceeded expectations, the mitigation of chip shortage was less than expected, and the rise of raw material costs exceeded expectations
