\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 458 Zhuzhou Times New Material Technology Co.Ltd(600458) )
Event overview
The company released the annual report of 2021. In 2021, the company realized an operating revenue of 14.051 billion yuan, a year-on-year increase of - 6.83%; The net profit attributable to the parent company was 181 million yuan, a year-on-year increase of - 44.44%; Deducting the net profit not attributable to the parent company was 38 million yuan, a year-on-year increase of - 80.80%; The operating cash flow was 256 million yuan, a year-on-year increase of - 89.40%. Among them, 21q4 achieved a revenue of 3.292 billion yuan, a year-on-year increase of - 34.98%; The net profit attributable to the parent company was 30 million yuan, a year-on-year increase of - 82.32%; The operating cash flow was 1.157 billion yuan, a year-on-year increase of + 11.04%.
Brief comment
The performance of rail transit and other sections increased steadily, and the provision of asset impairment loss affected the profit. During the reporting period, the rail transit section achieved a sales revenue of 3.175 billion yuan, a year-on-year increase of + 16.05%, and a net profit of 446 million yuan, a year-on-year increase of + 22.46%. It continued to shoulder the mission of stable growth of the company and steadily promoted market development; The wind power segment achieved a sales revenue of 5.098 billion yuan, a year-on-year increase of - 25.93%, a net profit of 270 million yuan and a net interest rate of 5.4%. Although the revenue decreased, it increased significantly compared with the sales revenue of 2.325 billion yuan before rush installation in 2019. The decline of sales revenue was mainly due to the decline of wind power bidding price, the decline of new grid connected installed capacity and the high price of main raw materials. The auto segment achieved a sales revenue of 5.463 billion yuan, a year-on-year increase of + 4.08%, and a net profit of - 185 million yuan, a year-on-year increase of 32.52%. With the strong promotion of cost reduction and efficiency increase of BOGO business, the loss of the segment was further narrowed; The sales revenue of new materials and other sections was 315 million yuan, a year-on-year increase of + 48.58%. The promotion of domestic substitution of aramid products and the breakthrough in new markets promoted the revenue growth of the section. In 2021, the company realized a net profit attributable to the parent company of 181 million yuan, a year-on-year increase of - 44.44%, mainly due to the company's provision for asset impairment losses and the decline of gross profit margin. The items of asset impairment losses of the company were -3.7 / - 1.2 / - 69 million yuan respectively from 2019 to 2021, which improved year by year. In 2022, as the first year of upgrading and development of the company, the risks at all levels of the company were greatly released and ushered in new development.
The price of raw materials dragged down the company's gross profit margin and the expense rate decreased steadily. (1) Gross profit margin: in 2021, the company's gross profit margin was 13.67%, down 4.11pct year-on-year; The gross profit margin of 2021q4 was 12.5%, down 5.9pct year-on-year. Among them, the gross profit margin of rail transit section in 2021 was 29.84%, with a year-on-year decrease of 4.05pct, which was caused by the change of product sales structure and the rise of raw material prices; The gross profit margin of the wind power segment was 9.76%, down 7.29pct year-on-year, which was caused by the decline in the sales price of wind power blade products and the rise in the price of raw materials; The rise in the price of raw materials in the industry also had an impact on the auto sector. The gross profit margin of the auto sector was 7.78%, down 2.68 PCT year-on-year; The company's new materials section continued to make efforts to the special equipment market, with a gross profit margin of 16.29%, an increase of 1.58pct year-on-year. (2) Expense ratio: in 2021, the company's sales expense ratio was 3.23%, with a year-on-year decrease of 1.53pct; The management fee rate was 8.15%, down 0.08pct year-on-year; The R & D expense ratio was 4.43 PCT, a year-on-year decrease of 0.15 PCT; The financial expense rate was 0.58%, with a year-on-year decrease of 0.25pct. The expense rate was stable compared with last year, and the company's operation and management reform achieved initial results.
The multi wheel drive of the section is expected to open up new growth space. The policy is expected to promote the growth of seismic reduction and isolation sales in industry and buildings, and broaden the application fields such as localization of LNG storage tanks and wind turbine elastic products, which is expected to open a new growth space for the company's seismic reduction and isolation business; Wind power sector companies may benefit from the increase of gross profit margin brought by the growth of the industry and the easing of raw material prices; The demand of new energy vehicles for lightweight products brings greater market opportunities to BOGO; At the same time, the engineering of new material products and continuous market promotion may bring new performance growth points to the company. The company's business is multi-line and can be expected in the future.
Investment advice
It is estimated that from 2022 to 2024, the company will realize operating revenue of 15.820, 18.044 and 20.433 billion yuan, with year-on-year growth of 12.6%, 14.1% and 13.2%, corresponding to net profit attributable to parent company of 450, 640 and 860 million yuan, with year-on-year growth of 150.1%, 41.9% and 32.7% respectively, corresponding EPS of 0.57, 0.80 and 1.06 yuan respectively, and corresponding PE of current stock price of 18.95, 13.35 and 10.06 times respectively. The subsidiary section of the company has a high outlook, strong growth and can be expected in the future. It maintains the "buy" rating.
Risk tips
The raw material end of wind power blade continues to rise; The epidemic situation is repeated and the automobile industry is depressed; The promotion of industrial shock absorption products is less than expected; The new material market has insufficient awareness of domestic products, and the sales volume is lower than expected.
