\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 449 Ningxia Building Materials Group Co.Ltd(600449) )
The company’s net profit attributable to the parent company in 21 years was 801 million yuan, a year-on-year decrease of 17.0%
The company released its annual report for 21 years. The annual revenue / net profit attributable to the parent company was 5.78/801 billion yuan, with a year-on-year increase of + 13.2% / – 17.0% respectively, and the net profit deducted from non attributable to the parent company was 734 million yuan, with a year-on-year decrease of 20.5%. Among them, Q4 achieved a revenue of 1.637 billion yuan in a single quarter, a year-on-year increase of 32.4%, and the net profit attributable to the parent company was 109 million yuan, a year-on-year decrease of 24.1%. The cement sector of the company was greatly affected by the decline in demand in the past 21 years, but the revenue of network logistics and transportation business increased by + 2324% year-on-year, resulting in a year-on-year increase in operating revenue and a year-on-year decrease in net profit due to the increase in cost caused by the rise in raw coal price.
In the 21st year, the cement sales decreased slightly, and the smart logistics business grew rapidly
The company’s main business related to cement achieved a sales revenue of 4.89 billion yuan in 21 years, with a slight year-on-year increase of 0.72%. In 21 years, the sales volume of cement and clinker was 14.58 million tons, with a year-on-year decrease of 8%. The average price per ton increased by 22 yuan year-on-year to 279 yuan / ton. Affected by the rise of coal price, the cost per ton increased by 33 yuan year-on-year to 205 yuan / ton, and finally realized a gross profit per ton of 74 yuan, with a year-on-year decrease of 11 yuan / ton. The company’s sales areas are mainly concentrated in Ningxia and Inner Mongolia. With the gradual appearance of peak staggering replacement effect in Mengxi, the dual control of energy consumption is becoming more and more strict, the regional supply and demand pattern is optimized, and the cement price is expected to get out of the depression. The company has achieved aggregate / concrete sales of 7.2 million tons / 1.96 million m3 in 21 years. It plans to produce and sell 13.5 million tons of cement, 9 million tons of aggregate and 2 million m3 of commercial concrete in 2022. It is expected that the main cement industry is expected to maintain steady growth. In the past 21 years, the company accelerated the development of smart logistics business and achieved a revenue of 590 million yuan, with a significant year-on-year increase of 2324%, accounting for 10% of the overall revenue. It is expected to continue to contribute to the profit increment in 22 years.
The decline of gross profit margin and the increase of expense rate in 21 years led to the decline of net profit margin and the excellent capital structure
In the 21st year, the company’s overall gross profit margin was 24.7%, with a year-on-year decrease of 8.1pct, of which the gross profit margin of building materials industry / logistics industry was 27.3% / 1.43% respectively, with a year-on-year decrease of – 6.2 / – 9.5pct respectively; During the 21-year period, the expense rate was 7.4%, with a year-on-year increase of + 0.5pct, of which the management / R & D / financial expense rate was – 0.1 / + 0.2 / + 0.4pct respectively. The increase in R & D expense rate was mainly due to the increase in R & D project funds. The increase in financial expense rate was mainly due to the increase in interest paid by discounting some bank acceptance bills for the planning and allocation of funds. Finally, the net interest rate attributable to the parent company was 13.9%, with a year-on-year decrease of 5pct, and the profitability decreased. At the end of the period, the asset liability ratio was 21.3%, a slight increase of 1.9pct year-on-year, and the capital structure continued to maintain an excellent level.
Major shareholders increased their holdings, strengthened development confidence and maintained the “buy” rating
The company is the largest cement enterprise in Ningxia, with a market share of nearly 50%. We believe that the price of water = mud in Ningxia and Inner Mongolia is expected to gradually get out of the depression, the main cement industry of the company is expected to maintain steady growth, and the smart logistics business is expected to accelerate its development. The company announced that the major shareholder of China building materials will increase its shares with its own funds, with an increase of no less than 70 million yuan and no more than 100 million yuan. This increase reflects the recognition of the major shareholders of the company’s long-term investment value. Considering that the performance in 2021 was lower than expected, the net profit forecast for 22-23 years was lowered to RMB 890 / 950 million (previous value: RMB 1.13/1.33 billion), and the 24-year forecast was increased to RMB 1 billion. Referring to comparable companies, the company was approved to give the company 8 times PE in 22 years, the target price was RMB 14.80, and maintain the “buy” rating.
Risk tips: cement demand is less than expected, price rise in peak season is less than expected, coal cost rise, etc
