\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
The company released its 2021 annual report, and achieved a total operating revenue of 23.6 billion yuan, a year-on-year increase of 18.6%; The net profit attributable to the parent company was 3.15 billion yuan, a year-on-year increase of 21.0%; The earnings per share is 1.23 yuan, and it is proposed to distribute a cash dividend of 10 yuan (including tax) for every 10 shares. The rapid growth of revenue is in line with expectations, and short-term performance is dragged down by exchange losses and freight charges. The chip shortage is expected to be gradually alleviated in 2022, and the car sales outside China may pick up and help the company improve its performance. The market share of the company continues to increase, the product structure is improved, the category is expanded, the value is continuously increased, and the development prospect is promising. We expect the company's earnings per share from 2022 to 2024 to be 1.60 yuan, 1.93 yuan and 2.30 yuan respectively, maintaining the buy rating.
Key points supporting rating
The rapid growth of income and short-term drag on performance such as exchange and freight. The impact of the epidemic weakened in 2021. According to the China Automobile Association, China's passenger car production increased by 7.1%. The company achieved a revenue of 23.6 billion yuan (+ 18.6%), and its market share continued to increase; The net profit attributable to the parent company was 3.15 billion yuan (+ 21.0%), exchange loss (530 million yuan), freight (+ 230 million yuan), price rise of raw materials (110 million yuan) and other short-term drag on performance. The annual gross profit margin was 35.9%, with a year-on-year decrease of 0.6pct, mainly due to the rise in sea freight and soda ash prices, which affected 0.98pct and 0.45pct respectively. The rates of sales and management expenses decreased by 0.4pct and 1.3pct respectively, the rate of R & D expenses increased slightly by 0.1pct, the financial expenses increased by 39.0% (exchange loss increased by 110 million yuan), the rate of four expenses decreased by 1.2pct, and the cost control was good. 21q4 affected by the shortage of chips, China's passenger car production decreased by 0.3%, the company's revenue of 6.45 billion yuan (+ 5.2%) was better than the industry, and the gross profit margin was relatively stable. However, due to the appreciation of RMB, one-time expenses of fysam and the rise in the price of raw materials, the net profit attributable to the parent company was 550 million yuan (- 37.3%).
The sales volume of passenger cars gradually recovered and the market share continued to increase. In 2022, the shortage of chips is expected to be gradually alleviated. Coupled with the demand for replenishment of libraries, automobile sales outside China may increase rapidly, which will promote the improvement of the company's performance. Under the influence of covid-19 epidemic, the pattern of the global automotive glass industry was reshaped, and some competitors closed European factories. In 2021, the growth rate of the company's automotive glass revenue exceeded the industry by about 15pct, and the global market share reached 31%, an increase of 3PCT over the previous year. It is expected to reach 35% in 2023. Trends such as low-carbon and environmental protection will also promote the rapid development of the automotive glass industry. The recovery of automobile sales outside China, the decline of raw material prices and the increase of the company's share are expected to promote the continuous growth of performance.
The structure is improved, the category is expanded, and the value is increasing. In 2021, the proportion of high value-added products of the company increased by about 3.3pct, and the ASP of automobile glass increased by 3.8pct. The application proportion of ceiling glass in new energy vehicles continues to increase. With the application of low-e coating dimming and other functions, the added value continues to increase, which is expected to promote the continuous growth of ASP. Affected by the epidemic and lack of core, the short-term performance of Sam trim business is under pressure, but the product advantages have been recognized by customers outside China. New orders of about 3 billion yuan and 1 billion yuan were obtained in 2021 and January February 2022 respectively. It is expected to turn losses into profits in the follow-up, and the development prospect is promising.
Valuation
Considering the impact of freight and rising prices of raw materials, we adjusted the profit forecast. It is expected that the company's earnings per share in 20222024 will be 1.60 yuan, 1.93 yuan and 2.30 yuan respectively, maintaining the buy rating.
Main risks of rating
1) the automobile sales volume is lower than expected; 2) Substantial price reduction of products; 3) The cost of raw materials has risen.
