\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
Conclusions and suggestions:
The company released its annual report for 2021, which achieved an operating revenue of 23.6 billion yuan, yoy + 18.6%, and recorded a net profit of 3.15 billion yuan, yoy + 21% (net profit of 2.82 billion yuan after deduction, yoy + 22.2%), equivalent to EPS of 1.23 yuan, and the performance was lower than the market expectation.
The company’s products are highly competitive. In recent years, it has accelerated the development of overseas markets and continuously improved its market share. The company expects to achieve the global market share target of 35% by 2023, which will continue to increase by 4 percentage points compared with 2021. With the evolution of the automotive industry towards electrification and intelligence, the company accelerated the development of intelligent glass products, and the added value of products continued to increase. Although the conflict between Russia and Ukraine has affected the operation of the company’s Russian factories, we believe that the overall impact is controllable because the income of Russian factories accounts for only about 2% and the orders exported to Europe will be undertaken by Chinese factories. We expect that the net profit of the company in 2022 and 2023 will reach 3.64 billion yuan and 4.35 billion yuan, yoy + 16% and + 19.5%, EPS will be 1.4 yuan and 1.67 yuan respectively, and the corresponding PE of A-Shares will be 25.6 times and 21.4 times according to the current price; The corresponding PE of H shares is 18.8 times and 15.8 times. It is recommended to “buy”.
The company’s annual performance grew steadily: in 2021, the company realized an operating revenue of 23.6 billion yuan, yoy + 18.6%, recorded a net profit of 3.15 billion yuan, yoy + 21% (net profit after deduction of non-profit of 2.82 billion yuan, yoy + 22.2%), equivalent to EPS of 1.23 yuan, and the performance was lower than the market expectation. On a quarterly basis, the company achieved an operating revenue of 6.45 billion yuan in 2021q4, yoy + 5.2%, and a net profit of 550 million yuan, yoy-37.3% (net profit of 440 million yuan after deduction, yoy-45%). The lower than expected net profit was mainly due to the expansion of exchange loss and Sam loss in the fourth quarter.
The steady growth of the company’s annual performance is mainly due to the recovery of the global automobile market and the improvement of industry demand in 2021; With strong product competitiveness, the company’s market share increased by 3 percentage points to 31% year-on-year, and the growth rate is better than that of the industry as a whole; In addition, the company’s product structure continued to be optimized, and the proportion of high value-added products increased.
The gross profit margin of the company is stable and the expense rate continues to decline: if the current accounting standards are unified, the annual gross profit margin of the company can be recorded as 35.90%, a year-on-year decrease of 0.60 percentage points, which is mainly due to 1) the increase of shipping costs affected by the epidemic, affecting the gross profit margin of 0.98pct; The price of soda ash rose, affecting the gross profit margin of 0.45pct. With the mitigation of the epidemic and the expansion of soda ash production capacity, we expect the shipping cost and soda ash price to gradually decline in 2022.
The company has excellent operation ability. According to the current accounting standards, the three expense rates of the company decreased by 1.3 percentage points year-on-year. Among them, the sales expense rate and management expense rate decreased by 0.4 percentage points and 1.3 percentage points respectively; The financial expense rate increased by 0.43 percentage points, mainly because the RMB continued to appreciate during the reporting period, and the exchange loss increased by 108 million yuan year-on-year. At the end of the reporting period, the company’s asset liability ratio was 41.3%, a year-on-year decrease of 2.5 percentage points. The company’s accounts receivable turnover days and inventory turnover days were 61.8 days and 90.5 days respectively, with a year-on-year decrease of 4 days and 3 days respectively.
Profit expectation: we predict that the net profit of the company in 2022 and 2023 will reach 3.64 billion yuan and 4.35 billion yuan, yoy + 16% and + 19.5%, EPS is 1.4 yuan and 1.67 yuan respectively, and the corresponding PE of A-Shares is 25.6 times and 21.4 times according to the current price; The corresponding PE of H shares is 18.8 times and 15.8 times. It is recommended to “buy”.
