\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 172 Henan Huanghe Whirlwind Co.Ltd(600172) )
Matters:
The company announced on April 6, 2022 that it plans to issue 112147 million shares to specific objects, with a total amount of raised funds of RMB 800-1.05 billion. The net amount of raised funds after deducting the issuance expenses will be used for: 1) cultivating diamond industrialization projects (RMB 800 million); 2) The remaining part is used to supplement working capital and repay bank loans.
Guoxin’s view: 1) the company is a leading enterprise in cultivating diamond production in China. At present, it has gradually cleared away its historical burden and returned to its main business. In 2021, it will turn losses into profits and significantly improve its operating cash flow. At present, the fixed increase will further solve the pressure of the company’s production expansion funds and improve its financial situation. Under the high prosperity of the industry, the company’s operation is expected to improve significantly, We raised the net profit attributable to the parent company from 21 to 23 years to RMB 0.41/3.07/595 million (the previous value was RMB 0.41/3.07/501 million), and the corresponding PE value was 359 / 48 / 25 times, maintaining the “buy” rating. 2) Risk warning: industry competition intensifies; Downstream demand is lower than expected; Capacity expansion was less than expected.
