\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 985 Huaibei Mining Holdings Co.Ltd(600985) )
Event: the company issued the annual report of 2021. In 2021, the company achieved a total operating revenue of 65.04 billion yuan, a year-on-year increase of 24.2%; The net profit attributable to the parent company was 4.78 billion yuan, a year-on-year increase of 37.8%; The net profit after deduction of non return to parent company was 4.59 billion yuan, with a year-on-year increase of 44.7%.
In 2021, the net profit attributable to the parent company in Q4 increased by 1.2% month on month. In the fourth quarter of 2021, the operating revenue reached 16.46 billion yuan, with a year-on-year increase of 18.2% and a month on month decrease of 20.1%, mainly due to the decrease in the revenue of the company’s logistics trade sector; The net profit attributable to the parent company was 1.14 billion yuan, an increase of 63.8% year-on-year and 1.2% month on month; The net profit deducted from non parent company was 1.06 billion yuan, with a year-on-year increase of 57.7% and a month on month increase of 1.5%. Mainly due to the increase of management expenses in the fourth quarter, with a month on month increase of 300 million yuan (year-on-year + 30.9%, month on month + 31.8%), and the provision for credit impairment loss of 120 million yuan (mainly due to the company’s full provision for impairment of debts receivable from Hengda company).
The dividend yield is as high as 4.7% and the investment value is obvious. The company plans to distribute a cash dividend of 7.00 yuan (including tax) to all shareholders for every 10 shares. Based on the total share capital of 2.48 billion shares, the company plans to distribute a cash dividend of 1.74 billion yuan (including tax), accounting for 36.33% of the company’s net profit attributable to the parent company in 2021. Based on the closing price on March 30, the dividend rate is as high as 4.7%.
Coal: the volume and price rise together, the gross profit increases greatly, and there is still room for increment in the future. In 2021, the company’s coal sector achieved a revenue of 15.92 billion yuan, an increase of 40.5% year-on-year; The gross profit was 6.51 billion yuan, a year-on-year increase of 40%; The gross profit margin was 40.9%, with a year-on-year decrease of 0.2 PCT; In the fourth quarter, the revenue of the coal sector was 4.93 billion yuan, an increase of 71.4% year-on-year and 31.2% month on month; The gross profit was 2.06 billion yuan, an increase of 83.7% year-on-year and 38.3% month on month. Production and marketing: the company’s annual commercial coal output was 22.576 million tons, a year-on-year increase of 4.1%; The annual sales volume of commercial coal was 19.76 million tons, a year-on-year increase of 15.9%. Among them, Q4 produced 6.26 million tons of commercial coal in a single quarter, an increase of 10.9% year-on-year and 23.7% month on month; The sales volume of commercial coal in Q4 single quarter was 4.94 million tons, with a year-on-year increase of 3% and a month on month decrease of 0.5%. Selling price and cost: the annual selling price of commercial coal per ton of coal of the company was 806 yuan, with a year-on-year increase of 21.2%; The sales cost per ton of coal was 477 yuan, a year-on-year increase of 21.5%; The gross profit per ton of coal was 329 yuan, a year-on-year increase of 20.7%. Among them, the selling price of Q4 single quarter ton coal was 999 yuan, with a year-on-year increase of 66.4% and a month on month increase of 31.8%; The gross profit per ton in a single quarter was 417 yuan, an increase of 78.3% year-on-year and 38.9% month on month. There is still room for growth in production and sales in the future. Xinhu coal mine was officially put into operation in September 2021, with a new coal capacity of 3 million tons / year. It is expected that the capacity utilization rate will reach about 70% in 2022 and basically reach the design capacity in 2023. The main products are coking coal and 1 / 3 coking coal, which can continuously enhance the competitiveness of the company. In addition, the company’s taohutu coal mine construction project has been approved by the national development and Reform Commission. At that time, it will bring 8 million tons / year of power coal capacity increment. The main coal of taohutu coal mine is high calorific value power coal, with a calorific value of more than 6000 kcal.
Coal chemical industry: steady production and sales, substantial increase in price, and large-scale new methanol projects are imminent. In terms of coke, the annual revenue was 10.78 billion yuan, a year-on-year increase of 42.4%. Among them, the company achieved coke output of 4.1 million tons, a year-on-year decrease of 0.7%; Coke sales volume was 4.08 million tons, a year-on-year decrease of 1.3%; The average sales price was 2646 yuan / ton, up 49.4% year-on-year. Among them, the coke output in Q4 was 1.01 million tons, a year-on-year decrease of 7.8% and a month on month decrease of 0.3%; The coke sales volume was 990000 tons, with a year-on-year decrease of 12.9% and a month on month decrease of 3.4%; The average sales price was 3447 yuan / ton, up 82.3% year-on-year and 28.9% month on month. In terms of methanol, the annual revenue was 780 million yuan, an increase of 28.8% year-on-year. The output of methanol was 343000 tons, a year-on-year decrease of 9.9%; Methanol sales volume was 344000 tons, a year-on-year decrease of 10.3%, and the average sales price was 2259 yuan / ton, a year-on-year increase of 43.5%. Among them, Q4’s single quarter revenue was 220 million yuan, a year-on-year increase of 12% and a month on month increase of 24.9%; Methanol output was 79000 tons, with a year-on-year decrease of 24% and a month on month decrease of 0.9%; Methanol sales volume was 81000 tons, a year-on-year decrease of 27.8% and a month on month increase of 4%; The average sales price was 2731 yuan / ton, up 55.2% year-on-year and 20.1% month on month. Future increment: the company’s comprehensive utilization of coke oven gas to produce 500000 tons of methanol project has been put into trial production in December 2021 and is expected to be officially put into operation before the end of June 2022; The Shanghai Pudong Development Bank Co.Ltd(600000) ton ethanol production project of methanol comprehensive utilization project has been started in December 2021. It is expected to be completed and put into trial production by the end of 2023 and officially put into operation in 2024.
Investment advice. As the leader of coal and coke in East China, the company has stable downstream users, good geographical location conditions and transportation advantages. In addition, Xinhu coal mine, comprehensive utilization of coke oven gas and leiming Kehua limestone mine (the Dongshan mine in Soli has been completed and put into operation, and the capacity expansion of wazikou and wangshanwo mines have been checked and accepted). The performance of the company is also expected to usher in sustained growth. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 7.35 billion yuan, 8.08 billion yuan and 8.6 billion yuan respectively, and the EPS will be 296 yuan, 3.26 yuan and 3.47 yuan respectively, with the corresponding PE of 5.1, 4.6 and 4.3, maintaining the “buy” rating.
Risk warning: the project is not put into operation as expected; Coking coal and coke prices fell sharply.
