\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 817 Yutong Heavy Industries Co.Ltd(600817) )
Event: the company issued an announcement on the first repurchase of the company’s shares by means of centralized bidding transaction.
It is proposed to buy back the company’s shares for the first time with its own funds and reserve the employee stock ownership plan. The purpose of the company’s share repurchase is to implement the company’s employee stock ownership plan in the future. The total share repurchase fund is between 50 million yuan and 100 million yuan, the repurchase price is no more than 14 yuan / share, the period of share repurchase is no more than 12 months, and the relevant shareholders have no plan to reduce their shares in the company in the next 6 months. Under the assumption that the upper limit of share repurchase price is 14 yuan / share, according to the calculation of the upper limit of 100 million yuan / lower limit of 50 million yuan, the company expects the number of shares that can be repurchased to be about 7142900 shares / 3571400 shares respectively, accounting for 1.33% / 0.66% of the total issued share capital of the company. As of March 16, the Company repurchased 1110400 shares for the first time through centralized bidding, accounting for 0.21% of the total share capital of the company. The highest transaction price was 10.40 yuan / share, the lowest price was 9.38 yuan / share, and the total amount paid was 111918 million yuan (including transaction expenses). This share repurchase will help improve the company’s long-term incentive mechanism, stimulate team vitality and enhance investor confidence.
The electric share is stable, the regional advantages of the first stock are strengthened, and the heavy volume of traditional equipment enhances the upper clothing channel. According to the traffic compulsory insurance data of the China Banking and Insurance Regulatory Commission, the sales volume of the company’s sanitation equipment increased by 57.45% in 2021, accounting for 3.78% of the market, ranking in the top four for the first time. 1) In 2021, the share of electric equipment will greatly increase to 28.85%, ranking first in the industry, and the regional advantages of stock will be strengthened. In 2021, the sales volume of the company’s electric equipment was 1143, with an increase of 46.73% and a market share of 28.85%. The company ranked first in the industry in the whole year, an increase of 7.43 PCT over the market share of 21.42% in 2020. The regions with the largest sales growth are Guangdong, Hebei, Henan and Beijing, which are the regions with stock advantages of the company. At the same time, the company has achieved rapid expansion in new fields in Sichuan, Shanghai and Zhejiang to verify the core competitiveness of the company. The sales volume of electric equipment of 2022m1 company was 175, increasing by 150% at the same time, accounting for 41.97% of the market, with a year-on-year increase of 17.14%, solidifying its leading position. 2) In 2021, the share of traditional equipment increased by 1.26pct to 2.76%, helping to enhance the loading capacity and expand channels. In 2021, the sales volume of the company’s traditional equipment was 2680, with an increase of 62.52% and the market share increased by 1.26pct to 2.76%. In 2020, the market share of the company’s sales of traditional equipment outside the province was lower than 4%. In 2021, the market share of sales in 6 provinces and cities exceeded 4%. The market share outside the province expanded in an all-round way. The regions with obvious increase in the market share were Jilin, Liaoning, Anhui, Jiangxi, Chongqing, etc. The company has achieved pure channel expansion of traditional equipment in Heilongjiang, Jilin, Inner Mongolia, Guizhou, Hainan and Ningxia. The rapid growth of traditional equipment will help the company develop channel resources and enhance equipment loading capacity.
Sanitation new energy has grown 50 times in the past decade, and its manufacturing and service advantages have created Zhongxin Yutong in the sanitation blue ocean. Relying on the group’s manufacturing capacity and service advantages, the company has outstanding advantages: 1) manufacturing end: chassis integration & centralized battery procurement and cost reduction, customized chassis & product iteration to demonstrate its technical strength. 2) Service end: the country’s deep coverage of 1900 + service outlets is several times that of peers. 3) The flexibility of electrification is the largest: the revenue of new energy equipment accounts for more than half of the equipment, ranking first in the industry, and the performance elasticity is the largest under the trend of electrification.
Profit forecast: the company enjoys the long-term dividend of sanitation electrification by virtue of its manufacturing and service advantages, and the performance of sanitation equipment and sanitation services is expected to increase significantly. We maintain the company’s net profit forecast of RMB 363 / 454 / 569 million from 2021 to 2023, a year-on-year 23.5% / 24.9% / 25.3%, and EPS of RMB 0.67/0.84/1.05, corresponding to 15 / 12 / 10 times PE, maintaining the “buy” rating.
Risk tip: the penetration rate of new energy is lower than expected, the marketization rate is lower than expected, and the market competition is intensified
