\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Core view
The annual performance reached a new high, and the provision of excess profit affected Q4 performance. In 2021, the company’s revenue was 19.71 billion yuan, a year-on-year increase of + 68.9%, the net profit attributable to the parent company was 6.03 billion yuan, a year-on-year increase of + 149.5%, and the net profit not attributable to the parent company was 5.15 billion yuan, a year-on-year increase of + 165.2%. The non recurring profit and loss mainly included 690 million yuan from the disposal of some precious metals sold and 190 million yuan from the disposal of compensation for relocation in Chengdu. The EPS was 1.51 yuan / share, and 4.8 yuan (including tax) was proposed to be distributed 10 times. Q4’s single quarter revenue was 5.87 billion yuan, a year-on-year increase of + 54.9%, a month on month increase of + 11.3%, and the net profit attributable to the parent company was 1.72 billion yuan, a year-on-year increase of + 51.7%, a month on month increase of + 1.2%, deducting the net profit not attributable to the parent company of 1.2 billion yuan, a year-on-year increase of + 51.0%, a month on month decrease of – 16.1%. The main reason for the month on month fluctuation of Q4 performance was the significant increase in management expenses due to.
The volume and price of products have risen simultaneously, and the profitability has been greatly improved. In 2021, the company sold 2.3528 million tons of roving and products, a year-on-year increase of + 12.8%, 440 million meters of electronic cloth, a year-on-year increase of + 16.4%, and realized a revenue of 17.84 billion yuan of glass fiber and products, a year-on-year increase of + 61.6%. The simultaneous rise of product volume and price mainly benefited from the strong demand of downstream market segments such as automobile and electronics. At the same time, the company actively adjusted its production capacity and product structure, gave full play to its layout advantages, seized the market, and actively expanded large customers and increased market share; In terms of regions, China / overseas achieved revenue of RMB 12.62/6.17 billion respectively, a year-on-year increase of + 63.3% / + 65.3%, accounting for 67.2% / 32.8%, which was basically the same as that in the same period of last year. The comprehensive gross profit margin of the whole year was 45.3%, with a year-on-year increase of + 11.5pct, including 49.9% of glass fiber and products, with a year-on-year increase of + 14.7pct. The gross profit margin of Q4 in a single quarter was 43.2%, with a year-on-year increase of + 2.93pct and a month-on-month increase of -2.26pct, mainly due to the obvious decline in the price of Q4 electronic cloth and the rise in the cost of natural gas.
The layout of production capacity was accelerated and the product structure continued to upgrade. Intelligent manufacturing continues to take the lead, the production capacity layout is accelerated, the product structure is continuously optimized, the profitability is further improved, and new growth points are contributed: 1) the construction of Tongxiang intelligent manufacturing base is accelerated in an all-round way, of which the phase II production line with an annual output of 60000 tons of electronic yarn and 300 million meters of electronic cloth and the 150000 tons of chopped precursor production line have been ignited in March and August 2021 respectively, and the phase III production line with an annual output of 100000 tons of electronic yarn and 300 million meters of electronic cloth is expected to be put into operation in 22h1; 2) The 150000 ton chopped strand production line of Chengdu intelligent manufacturing base is promoted on schedule and is expected to be put into operation in 23h1; 3) Egypt’s phase IV 120000 ton production line is accelerated and is expected to be put into operation by the end of 22; 4) It is planned to build a 400000 ton glass fiber production line in Jiujiang intelligent manufacturing base, which will be implemented in two phases and is expected to be put into operation in 2023 and 2024 respectively.
Risk tip: the economic recovery is less than expected; Production capacity exceeds expectations; Raw fuel prices rose more than expected.
Investment suggestion: the high boom is expected to continue, leading the growth of “Fiberglass” and maintaining the “buy” rating
Benefiting from the repeated pull of wind power, automobile, electronics and other fields, the demand for glass fiber is supported. From the perspective of the scale and rhythm of supply increase, it is expected that roving is expected to maintain a tight balance, and the high price of electronic yarn has fallen to the bottom range. Affected by the cost support, it is expected that the downward space is limited. Optimistic about the company’s competitive advantage as a glass fiber leader, accelerate the promotion of intelligent manufacturing, further help the upgrading of production capacity and products, and the growth advantage will be further highlighted. It is estimated that the EPS of 22-24 years will be 1.52/1.62/1.78 yuan / share respectively, and the corresponding PE will be 10.6/10.0/9.1x, maintaining the “buy” rating.
