\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 377 Jiangsu Expressway Company Limited(600377) )
Event: the company issued the 2021 annual report. The company’s operating revenue in the 21st year was about 13.8 billion yuan, a year-on-year increase of 72%; The net profit attributable to the parent company was about 4.18 billion yuan, a year-on-year increase of about 70%; The net profit deducted from non parent company was about 3.68 billion yuan, with a year-on-year increase of about 57%. The company plans to pay a cash dividend (before tax) of 0.46 yuan / share, with a cash dividend rate of about 55%.
The new road production was put into operation, and the revenue of toll roads increased again. China’s epidemic prevention and control effect is good, and the company’s toll road business has basically returned to normal. In 2021, the total daily average traffic volume of toll roads controlled by the company (excluding Changyi expressway, Yichang Expressway and Wufengshan bridge) increased by 2.7% compared with the same period of 19 years, and the daily average toll income increased by 0.6% compared with the same period of 19 years. Among them, the daily average traffic volume of Shanghai Nanjing Expressway (Jiangsu section) increased by 0.8% compared with the same period of 19 years, and the daily average toll income decreased by 1.9% compared with the same period of 19 years. In addition, with Yichang Changsha Expressway and Wufengshan bridge officially put into operation in 2021, the company’s toll road business achieved an operating revenue of 8.26 billion yuan in 2021, a year-on-year increase of 37.3% and an increase of 5.5% over the same period in 19 years. By the end of 2021, the company has directly participated in the operation and investment of 17 road and bridge projects, and the mileage of opened roads and bridges owned or shared by the company has exceeded 910km.
The gross profit margin of toll road business recovered rapidly year-on-year. The gross profit margin of the company’s toll road business in 2021 was 55.9%, an increase of 7.4pct year-on-year in 2020, but a decrease of 7.3pct compared with the same period in 2019, mainly due to the maintenance and overhaul of Shanghai Nanjing Expressway, Xicheng Expressway and Wuxi Taihu Lake ring highway, in addition, the traffic flow of Changyi Expressway and Yichang expressway is in the cultivation period (not yet profitable), and the negative impact of the adjustment and change of charging standards.
The new toll road project has been steadily promoted. Changyi expressway, Yichang Expressway and Wufengshan bridge invested by the company have been opened to traffic recently; By the end of 2021, the Longtan bridge project (expected to be opened to traffic in 2024) has invested 2.006 billion yuan, accounting for 32.08% of the total investment of the project. With the opening of the new toll road project, the company’s road network will further integrate into the Yangtze River Delta integrated economic circle and open up the company’s future growth space.
Revenue from supporting services and real estate business increased year-on-year. In 2021, the company’s ancillary service business realized a revenue of 1.44 billion, an increase of 9.6% over the same period of 20 years and 6.6% over the same period of 19 years. This is mainly due to the impact of oil price rise on the oil sales business. However, due to the reduction of transaction price difference of oil sales business and the exemption of rent from some merchants, the gross profit margin of the company’s ancillary service business in 2021 was 3.97%, which was significantly lower than that in 2019 (7.84%) and 2020 (10.11%); In 2021, the company’s real estate business realized a revenue of 1.03 billion yuan, a year-on-year increase of 65.5%, a gross profit margin of 28.8%, and a net profit after tax of about 76 million yuan, which was basically the same year-on-year.
The resumption of toll road production and operation has pushed the company’s investment income back to positive growth. In 2021, the company realized an investment income of 1.2 billion yuan, an increase of 94% over the same period of 20 years and 35.6% over the same period of 19 years. The main reason is the strong recovery of production and operation of enterprises in the road and Bridge sector, which accounts for a large proportion of associated companies. In 2021, the associated road and Bridge Company realized an investment income of about 660 million yuan, an increase of 126% over the same period of 20 years and 10.9% over the same period of 19 years.
Investment suggestion: the road products operated by the company have obvious regional advantages, and the repeated epidemic has limited impact on the company’s toll road business; At the same time, the company continues to explore the upgrading and transformation of the service area, which is expected to become a mature model for the realization of highway flow in the future. Considering that there is still uncertainty about the evolution of the epidemic situation in China, we lowered the company’s eps4 for 22-23 years 2% / 2.8% to 0.91/0.97 yuan respectively, adding 24-year EPS to 1.01 yuan, maintaining the company’s “overweight” rating.
Risk warning: the new road network in the region will divert the toll road business of the company; The toll standard of toll roads has decreased; The revenue of the company’s large environmental protection and other businesses was lower than expected.
