As a private industrial gas giant, Suzhou Jinhong Gas Co.Ltd(688106) ( Suzhou Jinhong Gas Co.Ltd(688106) ) did not increase profits last year due to the rise of bulk commodities and increased costs. However, for the business target of 2022, the company plans to achieve a net profit of 322 million yuan this year, with a growth rate of 93.16%.
Suzhou Jinhong Gas Co.Ltd(688106) introduces that the company will expand to the whole country in a planned way through new construction, acquisition and integration, and will explore the business model related to hydrogen production, storage and transportation in the hydrogen energy industry chain based on serving vehicle hydrogen energy.
By the end of the fourth quarter of last year, Gaoyi assets and New China Life Insurance Company Ltd(601336) Xinjin had become the top ten shareholders of listed companies.
special gas revenue growth exceeds that of bulk gas
Suzhou Jinhong Gas Co.Ltd(688106) the annual report disclosed recently shows that in 2021, the company achieved an operating revenue of 1.741 billion yuan, an increase of about 40% year-on-year, and the net profit attributable to shareholders of listed companies was 167 million yuan, a decrease of 15.34% year-on-year. In addition, the net cash flow generated by the company’s operating activities also decreased by about 20% year-on-year, with a basic earnings per share of 0.34 yuan. The company plans to distribute a cash dividend of 2.50 yuan (including tax) for every 10 shares.
The operating cost of Suzhou Jinhong Gas Co.Ltd(688106) has increased due to the macro background of the continuous transmission of the pressure of commodity price rise. The staff of the company’s securities department previously told the securities times that the company’s performance was greatly affected by the bulk price rise, but the price had been raised to downstream customers in September last year. In addition, during the reporting period, the company introduced a number of management, technical and reserve talents with rich industry experience. At the same time, last year, the company launched a restricted stock incentive plan, with a total share payment of 176618 million yuan, which further led to the decline of net profit after deduction.
According to the survey conducted by the organization in February, Suzhou Jinhong Gas Co.Ltd(688106) executives said that since November 2021, the price of the company’s feed gas began to drop significantly, and now it has returned to the price range of the first quarter of 2021.
Suzhou Jinhong Gas Co.Ltd(688106) is an important supplier of special gas and bulk gas in China, providing more than 100 kinds of gas products in three categories: special gas, bulk gas and natural gas. According to the statistics of China Industrial Gas Industry Association, the sales volume of the company ranked first in the statistics of private gas industry enterprises of the Association for three consecutive years from 2019 to 2021.
Further, during the reporting period, the operating revenue of Suzhou Jinhong Gas Co.Ltd(688106) special gas increased by 46.9% over the same period of last year, exceeding the growth rate of bulk gas by nearly 45% year-on-year; According to the production and sales volume data, the sales volume of special gases doubled year-on-year to 124 million kg, compared with 72.37 million cubic meters in the same period. The company pointed out that the main reason is that the company has strengthened customer development and increased sales. In addition, the inventory of the acquired company has been included in the consolidated statements and increased inventory.
In the field of electronic bulk gases, in November last year, Suzhou Jinhong Gas Co.Ltd(688106) signed a supply contract with Semiconductor Manufacturing International Corporation(688981) North integrated circuit technology innovation center (Beijing) Co., Ltd. to supply nitrogen, hydrogen, oxygen and other electronic bulk gases, with an order scale of 1.2 billion yuan, which is expected to be officially supplied on April 30, 2022; On February 8 this year, the company signed a supply contract with Guangdong core YUENENG Semiconductor Co., Ltd. to supply electronic bulk gases such as nitrogen, argon and hydrogen, with an order scale of 1 billion yuan. In addition, Suzhou Jinhong Gas Co.Ltd(688106) independently developed ultra pure ammonia, high-purity nitrous oxide and other products are officially supplied to sk Hynix Semiconductor (China) Co., Ltd., Semiconductor Manufacturing International Corporation(688981) and other companies.
In terms of key R & D, Suzhou Jinhong Gas Co.Ltd(688106) electronic grade monofluoromethane, electronic grade hexafluorobutadiene and electronic grade octafluorocyclobutane projects have passed the new product and new technology appraisal of Jiangsu Provincial Department of industry and information technology. Members of the appraisal committee unanimously agreed that the overall technology of the three products is at the international advanced level. In October 2021, the company successfully carried out the trial production of electronic grade tetraethyl orthosilicate (TEOS) for integrated circuits.
During the reporting period, the company invested 698453 million yuan in R & D expenses, an increase of about 50% year-on-year. In addition, the company completed the “E-Gas new materials and R & D operation center project”, adding 1.6 million bottles / year of gas filling capacity.
continuous M & a strategy overweight hydrogen
During the reporting period, the total operating revenue of M & A companies was 810.8 billion yuan, accounting for 681% of the total operating revenue.
The aforementioned Suzhou Jinhong Gas Co.Ltd(688106) staff told the reporter that at present, the bulk gas market is relatively fragmented and there are integration opportunities. In addition, the company also has financial advantages and can export its own experience in production, operation, system and management to upgrade and transform the acquisition target, expand the product line and realize the “one-stop” layout. The company’s executives also said in the institutional research that the main considerations in the current selection of M & A targets are: focus on the gas companies with better standardization, certain volume and certain influence in the Yangtze River Delta.
For 2022, Suzhou Jinhong Gas Co.Ltd(688106) considers it an important year for the company to develop on a large scale, and plans to achieve an overall business target of 2.7 billion yuan in sales revenue this year, with a growth rate of 55.06%; It is planned to realize a net profit of 322 million yuan, with a growth rate of 93.16%
Suzhou Jinhong Gas Co.Ltd(688106) said that this year, it will expand to the whole country in a planned way by integrating new construction and acquisition; On the one hand, expand the capacity distribution of electronic special gases, carbon neutralization products, hydrogen and carbon dioxide, filling stations and air separation units, and establish a nationwide terminal market network of bottled gas, liquid gas and on-site gas production; On the other hand, on the basis of serving vehicle hydrogen energy, explore the business model related to hydrogen production, storage and transportation in the hydrogen energy industry chain.
In the field of hydrogen energy, last year Suzhou Jinhong Gas Co.Ltd(688106) completed the construction project of medium and high purity hydrogen production line of “Zhangjiagang Jinhong VLSI high purity gas project”, adding 24000 m3 / a hydrogen production capacity. In addition, the company has signed hydrogen supply contracts for hydrogen refueling stations or internal skid mounted stations with Jiahe (Shanghai) Industrial Co., Ltd., Chery Wanda Guizhou Bus Co., Ltd., Kaiwo New Energy Vehicle Co., Ltd., Petrochina Company Limited(601857) , China Petroleum & Chemical Corporation(600028) Chongqing subsidiary, etc., and currently serves 14 hydrogen refueling stations or internal skid mounted stations. In addition, at the beginning of this year, Suzhou Jinhong Logistics Co., Ltd. signed a comprehensive cooperation agreement with Jiaxing hydrogen energy industry development Co., Ltd. to provide professional hydrogen logistics services.
In 2021, Suzhou Jinhong Gas Co.Ltd(688106) overall fell by about 7%, rebounding from the stock price in late October last year to about 24% at the end of last year, but fell again in March this year. According to the annual report, as of the end of the fourth quarter of last year, among the top ten circulating shareholders, Huang Wanming’s shareholding ratio fell to 4.36%. Compared with Gao yiqingrui, No. 6 Ruihang fund has become the third largest circulating shareholder with a shareholding of 2.43%, and Xinhua life has also become the fourth largest shareholder with a shareholding of 2.34%.
