\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 282 Nanjing Iron & Steel Co.Ltd(600282) )
Events
The company released its 2021 annual report on the evening of March 22. In 2021, it realized an operating revenue of 75.674 billion yuan, a year-on-year increase of 42.45%; The net profit attributable to the parent company was 4.091 billion yuan, a year-on-year increase of 43.75%; EPS was 0.67 yuan, a year-on-year increase of 20.07%.
Commentary
The performance is in line with expectations and continues to receive high dividends. In 2021, the company sold 104037 million tons of steel, with a year-on-year increase of 2.11%, including 5.3383 million tons of special sectors, 3.0111 million tons of special steel long materials and 2.0543 million tons of construction threads; The gross profit margin of steel sales was 15%, with a year-on-year increase of 1.55 PCTs; The average sales price of steel excluding tax was 514918 yuan / ton, a year-on-year increase of 33.56%; The gross profit per ton of steel was 772.3 yuan, a year-on-year increase of 49.2%. In 2021, the company’s cash dividend per share was 0.3 yuan (including tax), the total dividend accounted for 45.08% of the net profit attributable to the parent company, and the dividend rate was 8%.
Actively promote the Indonesian coke project and further extend to the upstream industrial chain. The company built an overseas coke production base in Qingshan Industrial Park, Indonesia, and jointly established Indonesia Jinrui new energy and Indonesia Jinxiang new energy to build coke projects with an annual output of 2.6 million tons and 3.9 million tons respectively, totaling 6.5 million tons. The planned construction period of 2.6 million ton coke project is 18 months. At present, major node tasks such as 2 coke oven building and chimney capping have been completed, and the equipment installation and commissioning stage has been entered. The planned construction period of the 3.9 million ton coke project is 18 months. At present, it has passed the notice on the filing of overseas investment projects issued by the national development and Reform Commission and the enterprise overseas investment certificate issued by the Department of Commerce of Hainan Province. The site has entered the civil construction stage.
Acquire the leading flame retardant Zhejiang Wansheng Co.Ltd(603010) , and enjoy the investment income. According to the announcement in January 2021, the company plans to acquire the flame retardant leader Zhejiang Wansheng Co.Ltd(603010) , through agreement transfer and fixed increase, and plans to make a total contribution of no more than RMB 2.823 billion in cash, accounting for about 29.98% of the total share capital after Zhejiang Wansheng Co.Ltd(603010) non-public offering. The company will become the controlling shareholder of Zhejiang Wansheng Co.Ltd(603010) . According to the 2021 annual report, it is expected that the completion of the new share registration procedures and the acquisition in April 2022 will become a new growth point of the company’s operating revenue.
Profit forecast & investment suggestions
The company’s coke project is advancing steadily and the acquisition of Zhejiang Wansheng Co.Ltd(603010) has brought about profit increment. We have raised the net profit attributable to the parent company by 43% and 58% respectively from 22 to 23 years. It is estimated that the net profit attributable to the parent company in 22 to 24 years will be 4.716 billion yuan, 5.423 billion yuan and 6.193 billion yuan respectively, corresponding to 4.9 times, 4.3 times and 3.8 times of PE respectively, and the EPS will be 0.77 yuan, 0.88 yuan and 1.01 yuan respectively. Maintain the “buy” rating.
Risk tips
The project in Indonesia is not advancing as expected; Downstream demand fluctuation risk.
