\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
In 2021, the company’s revenue increased by 18.57% to 23.603 billion yuan, surpassing the industry
The company released its 2021 annual report. The revenue in 2021 was 23.603 billion yuan, a year-on-year increase of + 18.57%; The net profit attributable to the parent company was 3.146 billion yuan, a year-on-year increase of + 20.97%. The revenue of 2021q4 company was 6.45 billion yuan, a year-on-year increase of + 5.22%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of – 37.30%. The leading position of the company’s automobile and glass business is stable, and the growth rate of revenue is much higher than that of passenger car sales in the world and China. Under the appreciation of RMB, exchange losses affect the company’s Q4 performance. The company actively grasped the accelerated penetration trend of tianglass and HUD glass, and the business volume and price of steam glass increased simultaneously. At the same time, steadily promote the aluminum trim business and open up long-term growth space. On the basis of 2021, we lowered the company’s profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the revenue in 20222024 will be 270.3/341.9 (original value 299.5 / 355.5) / 40.62 billion yuan respectively, the net profit attributable to the parent company will be 36.0/46.0 (original value 49.0 / 58.2) / 5.53 billion yuan respectively, and the current share price corresponding to PE will be 27.5/21.5/17.9 times respectively, maintaining the “buy” rating.
The gross profit margin remains stable, and exchange gains and losses affect Q4 profits
In 2021, the company changed the accounting estimate, changed the transportation cost from period expense to included in operating cost, and made retroactive adjustment from 2019 to 2020. After the policy change, the gross profit margin of the company was 35.9% in 2021 and 36.5% in 2020, with a year-on-year decrease of 0.6pcts, mainly due to the rise of sea freight and soda ash price. In 2021, the appreciation of RMB brought exchange losses to the company, which were 172 / 356 million yuan in 2021h1 / H2 and 1.16/1.33/0.81/357 million yuan in 2021q1-q4 respectively. The rise of financial expenses caused by exchange losses was the main factor for Q4 to increase income but not profit. The company still shows stable profitability under the multiple adverse factors of lack of core in the automotive industry, rising prices of bulk commodities, repeated epidemics and rising freight rates, demonstrating the strong business toughness of the company.
The upgrading trend of the auto glass industry remains unchanged, and the fine reform of aluminum trim continues to advance
In 2021, the penetration of sky glass and HUD glass accelerated. The company actively grasped the industry trend. The revenue of high value-added automotive glass increased by 3.31pcts compared with that in 2020, driving the volume and price of automotive glass business to rise simultaneously (sales volume + 14.78% year-on-year, unit price + 3.82% year-on-year). The company has steadily promoted the aluminum trim business and introduced lean management into Sam company, which is expected to reverse its loss situation. From a long-term perspective, the synergy between steam glass and trim business can be expected.
Risk tips: the mitigation of core shortage is not as expected, the sales volume of passenger cars is declining, the epidemic situation is repeated, etc
