\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Key investment points
Event: in 2021, the company achieved a revenue of 19.707 billion yuan (+ 68.92%), a net profit attributable to the parent company of about 6.028 billion yuan (+ 149.51%), and a net profit not attributable to the parent company of 5.15 billion yuan (+ 165.22%); Among them, Q4’s operating income is 5.871 billion yuan (+ 54.87%), the net profit attributable to the parent company is about 1.724 billion yuan (+ 51.69%), and the net profit not attributable to the parent company is 1.204 billion yuan (+ 51.01%).
Comments:
The average price of roving increased by 2183% in the second half of the year, with the average price of roving rising by 624 tons in the second half of the year, which was higher than that of the fourth quarter. The average price of roving was higher than that of the fourth quarter, and the average price of roving was higher than that of the fourth quarter, Industry inventories remained low. In terms of sales volume, the company achieved a sales volume of about 2352800 tons of roving and products in 2021, with a year-on-year increase of 12.8%, and the sales volume reached a new high. From the 22-year industry expansion plan we followed, the supply and demand remain matched, and the roving high-profile is expected to continue. At the same time, according to the Subsidy Plan for factory relocation in Chengdu at the beginning of the 21st year, the asset disposal income will be confirmed to be about 187 million yuan in the 21st year, which will be concentrated with other government subsidies in the fourth quarter; In addition, in 2021, the company sold rhodium powder and other precious metals, realizing a disposal income of about 691 million yuan, thickening the company’s performance.
The production capacity of electronic yarn was gradually released and the price of Q4 gradually fell: in the fourth quarter, due to the influence of dual control of energy consumption, the demand for PCB fell, resulting in the price of electronic yarn and electronic cloth falling from a high level. According to the average price of Zhuo Chuang mainstream electronic yarn, the average price of electronic yarn in the fourth quarter was about 15850 yuan / ton, down 6.7% month on month. At the same time, the tax included price of 7628 electronic cloth also fell from 8.5 yuan / meter at the end of the third quarter to about 6 yuan / meter at the end of the year, The current price further fell back to 3.7 yuan / meter. We believe that the rapid decline in the price of electronic yarn has put pressure on the profits of some small and medium-sized enterprises, and the cost advantage of Jushi will be further reflected. The sales volume of electronic cloth of the company will reach 440 million meters in 2021, a record high. The second 60000 ton electronic yarn of the company has been put into operation in March 2021, and 300 million meters of electronic cloth production capacity has been completed; At the same time, the company adjusted the third electronic yarn expansion plan, expanded from 60000 tons planned in the past to 100000 tons, and built a supporting electronic cloth production line to meet the rapid growth demand in the 5g era. It is expected to be put into operation in 2022. At that time, the company’s electronic yarn production capacity will be about 270000 tons, the product structure will be further optimized, and the electronic yarn business will achieve further growth in sales in 22 years.
Jushi took the lead in opening the national reform, and the excess profit distribution mechanism mobilized the enthusiasm of employees: Jushi became the first enterprise to open the national reform under China Building Materials Group, which has significant demonstration significance. According to the company’s 20212023 excess profit sharing plan, taking the net profit as the assessment objective, a ladder extraction proportion is set for some core talents. 21 years is the first year of the implementation of the excess profit sharing plan. The excess profit will be cashed in accordance with the rules. If the cashing is not completed, the profit will be written back in 2024. The company binds the medium and long-term development with its employees, demonstrating its firm confidence in future development.
Steady expansion of production capacity and consolidation of leading position: in 2021, the company’s second 60000 ton electronic yarn, third 150000 ton intelligent manufacturing production line and 150000 ton glass fiber chopped precursor production line in Tongxiang quarter were successively ignited, and the production capacity remained stable expansion. At present, the company’s third 100000 ton electronic yarn and supporting construction of 300 million electronic cloth, 40000 ton technical transformation of 50000 tons in Tongxiang base, 80000 ton technical transformation of 120000 tons in Egypt base, and a new 120000 ton roving production line are under construction, which is expected to be put into operation in 22 years; At the same time, the company started the construction of 400000 ton intelligent manufacturing production line in phase 2 of Jiujiang base, which is expected to be put into operation in 23 and 24 years respectively. The company’s production capacity will maintain an annual increase of 20 Fawer Automotive Parts Limited Company(000030) 0000 tons, further improving the market share of the industry; We believe that the company’s scale advantage, product structure adjustment ability and fine management will make the company more competitive α Attribute will reduce the impact of cyclical fluctuations and consolidate the leading position.
Investment suggestion: we adjusted the company’s performance in 20222024 to be RMB 6.69 billion, RMB 7.35 billion and RMB 8.02 billion respectively, with corresponding EPS of RMB 1.67, RMB 1.84 and RMB 2 respectively, and corresponding PE valuation of 9.7, 8.8 and 8.1 times respectively; Maintain the “buy” rating and adjust the target price range to 25.05-28.39 yuan.
Risk tip: the new supply of the industry exceeded expectations, the continuous decline of the global economy dragged down demand, and the rise of raw fuel prices exceeded expectations.
