\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 801 Huaxin Cement Co.Ltd(600801) )
The net profit attributable to the parent company in 21 years was 5.364 billion yuan, a year-on-year decrease of 4.74%
The company released its annual report for 21 years. In the whole year, the revenue / net profit attributable to the parent company was 32.464/5.364 billion yuan, a year-on-year increase of + 10.59% / – 4.74% respectively, and the net profit not attributable to the parent company was 5.305 billion yuan, a year-on-year decrease of 4.48%. Among them, Q4 achieved a revenue of 10.01 billion yuan in a single quarter, with a year-on-year increase of 11.91%, and the net profit attributable to the parent company was 1.8 billion yuan, with a year-on-year increase of 12.08%. When the growth of the main cement industry slowed down, the growth of aggregate, concrete and overseas business began to be realized, and the company continued to be optimistic about the medium and long-term development of the company.
In the 21st year, cement sales decreased slightly and overseas business accelerated
The company’s cement and clinker sales volume in 21 years was 75.27 million tons, a slight decrease of 0.96% year-on-year. We calculated that the average price per ton was 341.1 yuan, a year-on-year increase of 12.9 yuan. Affected by the rise of coal prices, the cost per ton increased by 32.8 yuan year-on-year to 229.1 yuan, and finally realized a gross profit per ton of 112.1 yuan, a year-on-year decrease of 19.9 yuan. The company’s main sales areas are central China and southwest China. The cement price in Southwest China has shown signs of improvement in 21 years. In the future, with the improvement of regional supply pattern and the tightening of peak staggering, the price is still expected to get out of the depression. In the 21st year, the company’s overseas revenue was 2.58 billion yuan, with a year-on-year increase of 36.7%. During the year, the delivery of cement M & A assets in Zambia and Malawi was completed, and the new cement production capacity reached 1.75 million tons. At the end of the 21st year, the overseas cement grinding capacity reached 10.83 million tons / year, ranking the second in China. At the beginning of the 22nd year, the company newly ignited the 2800 ton / day cement clinker production line in narayani, Nepal, and the overseas revenue is expected to continue to grow rapidly in the future.
In the past 21 years, the sales volume of aggregate and concrete increased rapidly year-on-year, and gradually became a new growth pole
The company continued to accelerate the integrated transformation and development. In the past 21 years, it sold 34.97 million tons of aggregate, with a year-on-year increase of 52%. The sales revenue was 2.05 billion yuan, with a year-on-year increase of + 74%, and the gross profit margin was 65.6%, with a year-on-year increase of + 3PCT. In 21 years, the company completed 12 aggregate production lines and expanded the production capacity to 154 million tons. At present, there are 10 aggregate projects under construction. After completion, the annual aggregate production capacity will reach 270 million tons, and the aggregate sales volume is planned to be 78.22 million tons in 22 years. In 21 years, the revenue of concrete business reached 3.18 billion yuan, with a year-on-year increase of 69%, and the sales volume was 9.05 million m3, with a year-on-year increase of + 96%. In 22 years, it is planned to sell 18.07 million m3. The cement + business continues to accelerate and create a new growth pole.
The expense rate improved significantly and the gross profit margin decreased
In 21 years, the company’s overall gross profit margin was 34.1%, with a year-on-year decrease of 6pct, and the expense rate during the period was 9.9%, with a year-on-year decrease of 3.7pct. Among them, the sales / management / financial expense rate decreased by 2.8/0.4/0.5pct respectively. The ability of expense control was prominent. Dragged down by the decline of gross profit margin, the net profit attributable to the parent company was 16.5%, with a year-on-year decrease of -2.7pct.
Optimistic about the growth of the company’s aggregate, concrete and overseas cement business, and maintain the “buy” rating
We continue to be optimistic about the medium and long-term growth of the company’s aggregate, concrete and overseas cement business. The company has established a performance doubling plan to double its revenue in 2025 compared with 19 years, laying the foundation for long-term development. Considering that the cement demand may decline in the future and the coal price may rise, the future cement clinker sales volume will be reduced, the ton cost and other forecasts will be raised, the net profit attributable to the parent company in 22-23 years will be adjusted to 6 / 6.7 billion yuan (the previous value is 7.62/8.72 billion yuan), and the net profit attributable to the parent company in 24 years will be increased to 7.36 billion yuan. Referring to the valuation of comparable companies, the company will be given 8 times the target PE in 22 years, with the corresponding target price of 22.88 yuan (the previous value is 21.91 yuan), Maintain the “buy” rating.
Risk tips: cement demand is less than expected, price rise in peak season is less than expected, coal cost rise, etc.
