\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 970 Sinoma International Engineering Co.Ltd(600970) )
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 36.242 billion yuan, a year-on-year increase of 18.68%; The net profit attributable to the parent company was 1.81 billion yuan, a year-on-year increase of 18.99%; The net profit attributable to the parent company after deduction was 1.3 billion yuan, a year-on-year increase of 51.64%.
The performance is in line with expectations and the profitability has been improved. In 2021, the company completed the asset integration of Sinoma mining, Nanjing Kaisheng and Beijing Kaisheng, and achieved an annual revenue of 36.242 billion yuan, a year-on-year increase of 18.68%. Among them, the project construction achieved a revenue of 21.323 billion yuan, a year-on-year increase of 8.37%; Equipment manufacturing achieved a revenue of 4.663 billion yuan, a year-on-year increase of 34.8%; Environmental protection achieved 1.886 billion yuan, a year-on-year increase of 10.78%; Production and operation management achieved a revenue of 6.428 billion yuan, a year-on-year increase of 36.32%; Other businesses achieved a revenue of RMB 2.152 billion, a year-on-year increase of 48.76%. The revenue of all businesses has increased steadily. In 2021, the net profit attributable to the parent company was 1.81 billion yuan, with a year-on-year increase of 18.99%, and the average growth rate in the past two years was 6.63%; The gross profit margin and net profit margin were 17.18% and 5.61% respectively, with a year-on-year increase of 1.13pct and 0.64pct respectively; The net operating cash flow was 2.214 billion yuan, 465 million yuan more than that in 2020.
The newly signed contract amount increased by 18% year-on-year, and the future performance is guaranteed. In 2021, the total amount of new contracts signed by the company was 50.979 billion yuan, a year-on-year increase of 18%, a record high. By region, the amount of domestic contracts was 27.567 billion yuan, a year-on-year increase of 28%, and the amount of overseas contracts was 23.413 billion yuan, a year-on-year increase of 8%. By business division, the newly signed contracts for engineering construction amounted to 36.695 billion yuan, an increase of 20% year-on-year; The newly signed contracts for equipment manufacturing amounted to 4.808 billion yuan, an increase of 16% year-on-year; The newly signed environmental protection contracts amounted to 1.513 billion yuan, a year-on-year decrease of 31%; The newly signed contracts for production and operation management amounted to 6.361 billion yuan, a year-on-year increase of 24%; New contracts for other businesses amounted to 1.602 billion yuan, an increase of 18% year-on-year. By the end of 2021, the company’s effective carry over contract amount was 56.591 billion yuan and the contract amount in hand was 97.053 billion yuan, providing guarantee for the company’s sustainable and stable development in the future.
Under the background of “double carbon”, the demand for technological transformation of cement production line continues to release. In 2020, China’s cement industry will emit 1.466 billion tons of carbon dioxide, accounting for about 14.3% of the total national carbon emission. Under the background of “double carbon”, energy conservation and carbon reduction in the cement industry is imperative, and the resulting demand for technological transformation of cement production lines will continue to be released. The company has complete industrial chain resources, professional talent team and system solutions from cement engineering technology R & D, engineering design, professional equipment manufacturing, engineering construction, equipment installation, production line commissioning to production line maintenance and operation management. The global market share of cement technology, equipment and engineering has remained the first for 14 consecutive years, and the future development can be expected.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2024 will be RMB 43491 / 51319 / 59.53 billion respectively, with a year-on-year increase of 20% / 18% / 16%, the net profit attributable to the parent company will be RMB 2.152/24.972874 billion, with a year-on-year increase of 19% / 16% / 15%, and the EPS per share will be RMB 0.97/1.13/1.3/share, corresponding to the PE of the current stock price of 9.8/8.4/7.3 times respectively, maintaining the “recommended” rating.
Risk warning: covid-19 epidemic situation affects the risk of project progress; The risk that the recovery of accounts receivable is less than expected.
