\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 282 Nanjing Iron & Steel Co.Ltd(600282) )
Core view
Benefiting from industry dividends, the performance increased significantly. In 2021, the company achieved an operating revenue of 75.674 billion yuan, a year-on-year increase of 42.45%, and the net profit attributable to the parent company was 4.091 billion yuan, a year-on-year increase of 43.75%. In the fourth quarter, affected by the rise in the price of raw and auxiliary materials, the operating revenue in a single quarter was 16.519 billion yuan, down 19.69% month on month, and the net profit attributable to the parent company was 622 million yuan, down 48.49% month on month. In addition, the company plans to distribute a cash dividend of 3 yuan (including tax) to all shareholders for every 10 shares, corresponding to the closing price on March 22, 2022, with a dividend rate of 7.96%. The product structure continues to upgrade. In 2021, the company’s steel sales volume was 104037 million tons, with a year-on-year increase of 2.11%, of which the sales volume of advanced steel materials was 1.8111 million tons, with a year-on-year increase of 16.15%, improving the gross profit margin of the company’s steel products. The company pays attention to product R & D investment. In 2021, 39 new products were developed, and 17 products passed the provincial new product appraisal, of which 6 reached the international leading level.
Indonesia’s coke project is advancing steadily. The company plans to build an overseas coke production base in Qingshan Industrial Park, Indonesia, and jointly establish Indonesia Jinrui new energy and Indonesia Jinxiang new energy technology to build coke projects with an annual output of 2.6 million tons and 3.9 million tons respectively. At present, the 2.6 million ton coke project has completed 2 coke oven building, chimney capping and other major node tasks, and entered the stage of equipment installation and commissioning. With the increasingly stringent environmental protection requirements in China, the increment of coke supply slowed down, and the price fluctuated at a high level under the support of coking coal price. The layout of overseas coke resources is expected to further enhance the stability of raw material supply and cost control ability of the company.
Zhejiang Wansheng Co.Ltd(603010) acquisition was actively promoted Zhejiang Wansheng Co.Ltd(603010) is the leader of phosphorus flame retardants, and is actively expanding lithium-ion electrolyte additives and new conductive materials. During the reporting period, the company invested 1.187 billion yuan to acquire 60 Chengdu Rml Technology Co.Ltd(301050) million shares. At present, the company has received the decision on non prohibition of antitrust review of business concentration issued by the State Administration of market supervision Zhejiang Wansheng Co.Ltd(603010) has received the reply on approving Zhejiang Wansheng Co.Ltd(603010) non-public Development Bank shares issued by China Securities Regulatory Commission. It is expected to complete the registration procedures of new shares and the acquisition in April 2022. After the acquisition, it will help the company build an industrial chain ecosystem with compound growth in the field of materials.
Risk warning: the demand side has fallen more than expected; Output control is less than expected; The construction progress of the project is less than expected.
Investment suggestion: the company is an old leading enterprise of medium and heavy sector, and the long products of special steel are also developing rapidly. With the help of intelligent manufacturing and intelligent marketing system construction, the company has continuously improved its operation efficiency and steadily improved its profitability. Taking into account the growth rate of raw materials of RMB 2026.6 billion, we predict that the year-on-year growth rate of raw materials will be RMB 834.5% / 882%, with a year-on-year growth rate of RMB 2026.5% / 884.5% and a year-on-year net profit of RMB 2026.5%; Diluted EPS is 0.71/0.74/0.79 yuan, and the corresponding PE of the current stock price is 5.3/5.1/4.8x, maintaining the rating of “overweight”.
