\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 449 Ningxia Building Materials Group Co.Ltd(600449) )
Revenue increased steadily, and rising costs suppressed profit performance. In 2021, the company achieved a revenue of 5.783 billion yuan, an increase of 13.17% and a net profit attributable to the parent company of 801 million yuan, a decrease of 16.96% and a net profit attributable to the parent company of 733 million yuan after deducting non profits, a decrease of 20.52% and an EPS of 1.68 yuan / share, with a proposed 10 dividend of 5.4 yuan (including tax). The growth of operating revenue mainly benefited from the development of the company’s smart logistics business. The corresponding increase in logistics and transportation revenue and the year-on-year decline in performance were mainly due to the rise in cost caused by the rise in raw coal price.
The profitability is under pressure and the cash position remains abundant. In 2021, the company sold 167795 million tons of cement clinker, a year-on-year decrease of 5.43%, 1.9636 million cubic meters of commercial concrete, a year-on-year increase of 3.27%, and 7.1962 million tons of aggregate, a year-on-year decrease of 5.80%. The revenue per ton of cement clinker reached 242.50 yuan / ton, with a year-on-year increase of 5.49%. Affected by the rise in coal prices, the cost per ton rose to 177.96 yuan / ton, a year-on-year increase of 15.69%, and the gross profit per ton decreased by 15.1% to 64.54 yuan / ton. The company’s cash flow remained abundant. During the reporting period, the net cash flow from operating activities was 1.33 billion yuan, with a year-on-year increase of 22.0%. The net cash on book at the end of the period was about 922 million yuan, with a year-on-year increase of 216.1%, mainly due to the decline of interest bearing debt and the conversion of some bank acceptances into cash. During the period of the company, the expense rate increased by 0.51pct to 7.37%, of which the sales and management expense rate decreased slightly by 0.02pct and 0.13pct to 0.86% and 5.71% respectively, and the R & D and financial expense rate increased by 0.22pct and 0.44pct to 0.31% and 0.49% respectively (+ 0.44%), mainly due to the discount interest payment of bank acceptance bill and the increase of project R & D fund investment.
Promote the development of smart logistics and respond to the requirements of low-carbon and green energy. The company accelerated the development of smart logistics business of “I find cars” of the Racing Association of things, with the revenue of 590 million yuan (the company’s revenue increased from 0.5% to 10.2%), an increase of 232411% year on year; While relying on the company’s rich internal application scenarios, the platform actively expanded external customers. By the end of 2021, the cumulative registered vehicles had reached 830000, a year-on-year increase of 121%. In addition, the company actively complies with the requirements of low-carbon green energy development. Its affiliated Qingshui Co., Ltd. has built a new generation II cement clinker production line with a daily output of 4000 tons through capacity reduction and replacement. The construction has started in the reporting period, and two new green plants have been added. Through technological transformation and intelligent plant construction, the level of energy conservation and consumption reduction has been continuously improved.
Risk warning: the increase of supply exceeds expectations; The implementation of the project is not as expected; The epidemic situation is repeated.
Investment suggestion: regional demand is supported, major shareholders increase their holdings to show confidence and maintain the “buy” rating.
As the leading cement company in Ningxia, the regional market accounts for nearly 50%, and the company has obvious advantages in scale, management, technology, brand and so on. Last year, Ningxia’s fixed assets increased by 2% year-on-year. This year, the growth target of fixed asset investment is 8%. Regional demand has certain support. In addition, the controlling shareholder China building materials plans to increase its shares of the company by RMB 70-100 million, reflecting its confidence in the company’s development prospects and recognition of long-term investment value. We expect EPS to be RMB 1.9/2.0/2.1/share in 202224, corresponding to PE of 6.5/6.1/5.8x, maintaining the “buy” rating.
