\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 86 Beijing New Building Materials Public Limited Company(000786) )
The company released the annual report of 2021. In 2021, the company’s revenue was 21.09 billion yuan, an increase of 25.5% at the same time; The net profit attributable to the parent company was 3.51 billion yuan, an increase of 22.7% at the same time. EPS2. 08 yuan / share, with a slight year-on-year decline in gross profit margin. The improvement of completion data drives the increase of gypsum board demand, and the rise of coal and asphalt prices brings certain cost pressure to the company.
Key points supporting rating
In 2021, the company’s revenue and net profit increased steadily, and the net cash flow from operating activities increased significantly: in 2021, the company’s revenue was 21.09 billion yuan, an increase of 25.5% at the same time; The net profit attributable to the parent company was 3.51 billion yuan, an increase of 22.7% at the same time; EPS2. 08 yuan / share. The comprehensive gross profit margin was 31.8%, with a decrease of 1.9pct. In 2021, the net cash flow from operating activities of the company was 3.83 billion yuan, with a significant year-on-year increase of 108.4%. The net operating cash flow of the company increased significantly year-on-year in this year, mainly due to the increase of income and sales collection in this period, and there was no settlement fee.
The cost pressure may be the main reason for the decline in gross profit: the company’s gypsum board sales volume in 2021 was 2.378 billion square meters, an increase of 18.0% at the same time, with the highest growth rate since 2013. We believe that the completion data in 2021 performed well, which led to a significant increase in the demand for gypsum board. In 2021, the price of coal and asphalt was at a high level, resulting in great cost pressure on the company. The gross profit margin of waterproof coiled material decreased by 9.3pct to 27.4%, and the fuel cost of gypsum board was also increased compared with the previous year.
“One body and two wings” has been steadily promoted, and the future development of the company can be expected: as a leading enterprise in the gypsum board industry with a market share of 60% and the world’s largest light steel keel industry group, the company is expected to make great progress in the gypsum board business. The waterproof and coating business of the company is advancing steadily, and the new profit growth point can be expected in the future.
Valuation
The company’s performance basically meets the market expectations, and we slightly adjust the profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 24.35 billion yuan, 27.46 billion yuan and 30.78 billion yuan; The net profit attributable to the parent company was 4.50 billion yuan, 5.22 billion yuan and 5.97 billion yuan respectively; EPS is 2.66 yuan, 3.09 yuan and 3.54 yuan respectively. Maintain the company’s buy rating.
Main risks of rating
The waterproof business affects the company’s cash flow. The implementation of gypsum board price rise is less than expected, and the price rise of raw materials is higher than expected.
