\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
Event:
Fuyao Glass Industry Group Co.Ltd(600660) released the annual report for 2021: in 2021, the company realized an operating revenue of 23.603 billion yuan, a year-on-year increase of + 18.57%; The net profit attributable to the shareholders of the listed company was 3.146 billion yuan, a year-on-year increase of + 20.97%; The net profit attributable to the shareholders of the listed company after deduction was 2.816 billion yuan, a year-on-year increase of + 22.22%.
Key investment points:
Q4 performance is under short-term pressure. In Q4 of 2021, the company achieved an operating revenue of 6.45 billion yuan, a year-on-year increase of + 5.22%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of - 37.30%; The gross profit margin was 23.58%, with a year-on-year ratio of -19.21pct and a month on month ratio of -16.8pct; The net interest rate was 8.53%, year-on-year -5.78pct and month on month -6.19pct. Throughout the year, the gross profit margin of the company was 35.90%, with a year-on-year increase of -0.6pct; Among them, affected by the price fluctuation of raw materials such as soda ash, it is -0.45pct; The impact of shipping freight is -0.98pct, mainly due to the continuous rise of international shipping prices and the adjustment of freight to operating cost due to the new revenue standard.
The net interest rate increased slightly compared with the same period, thanks to the improvement of period expense rate. In 2021, the company's net interest rate was 13.32%, a year-on-year increase of + 0.27pct, mainly due to the decline of expense rate during the period; The sales expense ratio was 4.88%, with a year-on-year increase of -0.35pct; The management expense ratio was 8.24%, with a year-on-year increase of -1.31pct; The R & D expense rate was 4.22%, with a year-on-year increase of + 0.13pct, which was caused by the company's increasing investment in R & D of high value-added products; The financial expense ratio was 2.91%, with a year-on-year increase of + 0.43pct, mainly due to the increase in exchange losses caused by exchange rate fluctuations.
High value-added products promote the continuous improvement of bicycle value. The company focused on enriching the product line and optimizing the product structure. For example, the proportion of high value-added products such as panoramic sky glass, dimmable glass and ultra insulating glass continued to increase, with a year-on-year increase of + 3.31pct. According to the prediction of the company, the penetration rate of ceiling glass will reach more than 25% in 2025, and the CAGR will reach 86% in the five years from 2020 to 2025. In addition, as a leading manufacturer of automotive glass in the world, the company's supporting customers cover many countries such as China, the United States, Britain, Germany and Japan and the world's top 20 automobile manufacturers. The development of the company's mature products will further promote the company's high value-added products.
Profit forecast and investment rating: give the company a "buy" rating. We are optimistic about the future development of the company. It is estimated that the company will realize the main business income of 28.2, 33.4 and 38.2 billion yuan from 2022 to 2024, with a year-on-year growth rate of 19%, 19% and 14%; The net profit attributable to the parent company was 4.3 billion yuan, 5.4 billion yuan and 6.4 billion yuan, with a year-on-year growth rate of 38%, 25% and 17%; The corresponding EPS is 1.66, 2.09 and 2.44 yuan. Risk tips: 1) risk of exchange rate fluctuation; 2) Risk of rising raw material prices; 3) The risk of Sam integration falling short of expectations.
