\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 817 Yutong Heavy Industries Co.Ltd(600817) )
The performance growth is in line with expectations. In 2021, the company achieved an operating revenue of 3.757 billion yuan, a year-on-year increase of 7.82%; The net profit attributable to the shareholders of the parent company was RMB 393 million, with a year-on-year increase of 33.55%, deducting the net profit not attributable to the parent company of RMB 249 million, which was – 51.36 million in the same period of 2020.
Seize the opportunity of new energy and sanitation market, and increase the performance by exchanging price for quantity. In 2021, the company’s environmental sanitation equipment achieved an operating revenue of 1.6 billion yuan, a year-on-year increase of 33.17%, and a gross profit of 460 million yuan, a year-on-year increase of 18.8%; Among them, the operating income of new energy sanitation equipment was 738 million yuan, with a year-on-year increase of 18.5%. In 2021, the company sold 4450 sets of environmental sanitation equipment, with a year-on-year increase of 64.15%; Among them, 1278 new energy sanitation equipment accounted for 28.72%, with a year-on-year increase of 41.84%, and the market share reached 28.5%, ranking first in the industry. Since 2014, the number of new energy sanitation vehicles has steadily ranked first in the industry. The average sales price of new energy sanitation equipment was – 22% year-on-year, while the average sales price of traditional sanitation equipment was – 17% year-on-year, resulting in a decrease in the overall gross profit margin of – 3.4pct to 28.5%.
The newly signed orders for sanitation services are stable, and the growth rate is far higher than the industry average, with an annual order in hand of 760 million. In 2021, the environmental sanitation service revenue of the company was 610 million yuan, with a year-on-year increase of 22.57%, the gross profit was 120 million yuan, with a year-on-year increase of 26.24%, and the gross profit margin was + 0.7pct to 24.4% year-on-year. In 2021, the contract value of the national sanitation market-oriented bid opening project was 216.3 billion yuan, with an annual value of 71.6 billion yuan, a year-on-year increase of 4.4%, of which the annual value of the bid winning project of aolande was 191 million yuan, and the annual value of the sanitation service projects in operation reached 760 million yuan, a year-on-year increase of 20.4%, which is far faster than that of the industry.
Affected by the prosperity of the real estate industry, construction machinery is under pressure in the short term. In 2021, the company’s construction machinery realized a revenue of 1.349 billion yuan, a year-on-year decrease of 7.88%, a gross profit of 400 million yuan, a year-on-year decrease of 12.46%, and a gross profit margin decrease of 1.55 PCT to 29.81%, which was mainly affected by the decline of China’s real estate industry and the slowdown of fixed asset investment in 2021. The company continues to promote product iteration, and new energy rotary drilling products and new energy mining vehicles have rapidly formed multiple market breakthroughs. Continue to be optimistic about the company’s operating capacity and the profit potential brought by the recovery of downstream prosperity.
Profit forecast and investment suggestions
We expect the net profit attributable to the parent company to be 445 / 500 / 589 million yuan in 22-24 years (originally predicted to be 615 / 778 million yuan in 2022 / 2023). The reduction of profit forecast is mainly due to the impact of the epidemic and the government’s expenditure on environmental sanitation is lower than expected. The predicted earnings per share are 0.83/0.93/1.09 yuan, of which the net profit of 22-year new energy sanitation vehicles is 192 million yuan (given 22-year pe24x), construction machinery, traditional sanitation equipment and services are 253 million yuan (given 22-year pe12x), and the target price is 14.17 yuan to maintain the purchase.
Risk tips
There is a risk that the purchase demand for new energy sanitation vehicles will decline, the penetration rate will not increase as expected, and the environmental sanitation service order will decline.
