\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 636 Zhuzhou Kibing Group Co.Ltd(601636) )
The company released its annual report for 2021 on April 7, with annual revenue of 14.57 billion yuan, an increase of 51.1% at the same time; The net profit attributable to the parent company was 4.23 billion yuan, an increase of 133.4% at the same time; EPS1. 58 yuan. In the fourth quarter alone, the company’s revenue was 3.81 billion yuan, an increase of 23.3% and the net profit attributable to the parent company was 580 million yuan, a decrease of 4.6%. Under the strategy of one body and two wings, the company’s photovoltaic production expansion and speed-up.
Key points supporting rating
The company’s revenue and profit increased sharply in 21 years: the company’s revenue in the whole year was 14.57 billion yuan, an increase of 51.1% at the same time; The net profit attributable to the parent company was 4.23 billion yuan, an increase of 133.4%. Benefiting from the high boom of float glass, the gross profit margin of the company increased significantly to 50.2%, with an increase of 13.0pct.
The volume and price of the original float glass increased simultaneously, and the profit increased significantly: in 2021, affected by the completion and repair of the real estate and the fluctuation of commodity prices, the price of the original float glass showed a high and wide fluctuation, and the industry boom remained high. The company sold 118.91 million boxes of high-quality float glass in the whole year, an increase of 4.5% at the same time. The gross profit per case was 53.7 yuan, an increase of 100.0% and an increase of 26.9 yuan.
The energy-saving building glass increased rapidly and the profit increased significantly: in 2021, the company’s fixed increase project of energy-saving building glass was put into operation, realizing a high increase in volume. The annual sales of 32.6 million square meters increased by 48.8%, the profit was 850 million yuan, increased by 131.9%, the gross profit margin was 42.0%, and increased by 8.8 PCT. With the continuous launch of production capacity, the production and sales volume is still expected to maintain a high growth rate in the future.
The float glass boom may be maintained, and the photovoltaic production expansion will be accelerated again: the 22-year float glass boom is expected to be maintained under the support of supply and demand; The production of photovoltaic glass has been expanded and accelerated. The company recently announced the construction of 7 photovoltaic glass production lines. It has been announced that the photovoltaic glass production capacity of the company will reach 16900 tons per day after all the projects under construction, planned and converted to production are completed, ranking among the top echelons. In addition, the company promotes the construction of distributed photovoltaic power stations in the five production bases, which is expected to further reduce costs and increase efficiency.
Valuation
The company’s performance is in line with expectations. We expect that from 2022 to 2024, the company’s revenue will be 15.62 billion yuan, 20.48 billion yuan and 29.22 billion yuan respectively; The net profit attributable to the parent company was 3.63 billion yuan, 4.40 billion yuan and 5.49 billion yuan respectively; EPS was 1.35, 1.64 and 2.04 yuan, maintaining the company’s buy rating.
Main risks of rating
The production capacity was put in less than expected, the price of raw materials rose, and the completion of real estate was less than expected.
