\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 507 Fangda Special Steel Technology Co.Ltd(600507) )
Core view
Benefiting from industry dividends, the performance has improved again. In 2021, the company achieved a revenue of 21.679 billion yuan, a year-on-year increase of 30.59%, and the net profit attributable to the parent company was 2.732 billion yuan, a year-on-year increase of 27.65%. In the single quarter of the fourth quarter, in the face of the adverse impact of rising raw material prices, the performance decreased slightly, realizing a revenue of 5.688 billion yuan, a month on month decrease of 7.12%, and a net profit attributable to the parent company of 590 million yuan, a month on month decrease of 11.13%.
The volume decreased and the price increased, and the gross profit margin decreased slightly. In 2021, the company sold 4.4208 million tons of steel products, a year-on-year decrease of 0.33%, mainly due to the low production and sales in the first quarter; The sales volume of iron concentrate powder was 536400 tons, a year-on-year decrease of 23.97%, and there was basically no export in the fourth quarter. In terms of price, the average selling price of iron and steel products was 473562 yuan / ton, a year-on-year increase of 31.66%, and the average price of iron concentrate powder was 124524 yuan / ton, a year-on-year increase of 51.25%. Due to the sharp rise in raw material prices, the gross profit margin of the company's steel products fell slightly by 2.71 percentage points to 18.12%.
The cost potential has been tapped and the cost per ton of steel has been continuously reduced. In recent years, the company has explored its potential and continued to reduce its cost. The period cost per ton of steel and the depreciation per ton of steel are at a low level in the industry, creating a cost moat for the company. In 2021, the depreciation per ton of steel in the production link of the company's steel business was 10.98 yuan / ton, a year-on-year decrease of 12.37%; The company's financial expenses have been negative for a long time. In 2021, the cost per ton of steel was 144.40 yuan / ton, a year-on-year decrease of 0.59%.
Equity incentive was launched to fully mobilize the enthusiasm of employees. The company announced the restricted stock incentive plan and plans to grant 215.59 million restricted shares to incentive objects, accounting for 10% of the total share capital of the company at the time of announcement. Under the downward pressure of demand and higher and higher environmental protection requirements, the proposed performance unlocking conditions are challenging. At the same time, the introduction of equity incentive scheme will help to fully mobilize the enthusiasm of the company's employees and promote the formation of a community of interests.
High cash dividend returns to shareholders. In 2021, the company plans to distribute cash dividends of RMB 11.10 (including tax) to all shareholders for every 10 shares, with a total cash dividend of RMB 2.393 billion (including tax). The proportion of cash dividends reaches 87.60%, corresponding to the closing price on March 18, 2022, and the dividend rate reaches 12.91%. It is planned to establish an iron and steel industry investment fund to open up the space for growth imagination. The company plans to jointly initiate with related parties
Jiangxi huxu iron and steel industry investment partnership (limited partnership) is established. The total scale of the fund is expected to be 10 billion yuan. As a limited partner, the company plans to invest 4 billion yuan. On March 14, the matter was deliberated by the general meeting of shareholders. The fund will mainly focus on equity investment in the iron and steel industry, which will help the company make use of the advantages and resources of all parties, comply with the situation of M & A and integration of the iron and steel industry, and promote the company to become bigger and stronger.
Prompt: the demand side falls beyond the expectation; The output control is less than expected.
Investment suggestion: the company has high asset efficiency and strong profitability. Taking into account the price changes of raw materials, we lowered the performance forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.5/2.6/2.6 billion, with a year-on-year growth rate of - 8.1/3.0/1.4%; Diluted EPS is 1.16/1.20/1.22 yuan, and the corresponding PE of the current stock price is 7.38/7.17/7.07x, maintaining the "overweight" rating.
