\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Core conclusion
Summary content
Event: the company released its annual report for 2021, and achieved a revenue of 19.707 billion yuan in 2021, a year-on-year increase of + 68.92%; The net profit attributable to the parent company was 6.028 billion yuan, a year-on-year increase of + 149.50%; The gross profit margin was 45.31%, with a year-on-year increase of + 11.5pct; The net interest rate was 31.15%, with a year-on-year increase of + 10.5pct. Among them, 21q4 realized a parent net profit of 1.723 billion yuan, with a month on month ratio of + 51.67% / + 0.88% respectively. The company’s annual performance reached a new high.
The volume and price of roving and electronic cloth products have increased simultaneously, and the ability of cost control has been significantly enhanced. Glass fiber continued the momentum of booming production and sales in the first half of the year, the demand in downstream application fields was strong, and the upgrading and optimization of the company’s product structure continued. In 2021, the company achieved sales volume of 2.3528 million tons of roving and products; The sales volume of electronic cloth reached 440 million meters, the highest in history. According to Baichuan, the year-on-year increases of 2400tex direct yarn, composite yarn and G75 electronic yarn in 21 years were 39%, 35% and 90% respectively, of which the month on month increases of 21q4 were 3%, 1% and 1% respectively. On the cost side, China’s natural gas price increased by about 52% year-on-year in 2021, of which 21q4 increased by 20% month on month. In the case of rising fuel costs, it fully shows the company’s excellent cost control ability and profitability toughness. We expect that the company’s cost center under the effect of scale may continue to decline.
The high boom of glass fiber industry in 22 years is expected to continue. Under the downturn of 5g, the demand for glass fiber and light-weight electronic equipment is expected to be reduced, and the supply of dual fiber and light-weight electronic equipment is expected to be reduced, which will lead to the rapid release of high demand for glass fiber and light-weight electronic equipment. In the first two months of 2022, the company’s total profit increased by more than 60% year-on-year. Although the price of electronic cloth has been corrected recently, considering that the roving price is expected to continue to increase and the cost advantage of the company is obvious, we expect that the company is expected to fully benefit from the profit growth brought by the continuous release of production capacity in 2022.
Investment suggestion: we expect the company’s operating revenue to reach 20.7 billion yuan, 22.3 billion yuan and 24.4 billion yuan from 2022 to 2024, and the net profit attributable to the parent company will be 6.34 billion yuan, 7.20 billion yuan and 8.48 billion yuan, corresponding to EPS of 1.58, 1.80 and 2.12 yuan respectively. At present, the corresponding PE of the stock price is 10, 9 and 8 times respectively, maintaining the rating of “overweight”.
Risk tip: the glass fiber boom is lower than expected, the production expansion progress is lower than expected, and the supply growth of the industry is higher than expected
