\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 636 Zhuzhou Kibing Group Co.Ltd(601636) )
The company disclosed its 2021 annual report
On April 7, the company disclosed its 2021 annual report. The annual revenue was 14.573 billion, a year-on-year increase of + 51.1%, the net profit attributable to the parent was 4.234 billion, a year-on-year increase of + 131.9%, and the net profit attributable to the parent after deduction was 4.152 billion, a year-on-year increase of + 140.7%. Among them, the revenue in the fourth quarter was 3.807 billion, a year-on-year increase of + 23.2%, and the net profit attributable to the parent company was 575 million, a year-on-year increase of – 5.6%. The annual gross profit margin and parent net profit margin were 50.24% and 29.05% respectively, with a year-on-year increase of + 12.97 and 10.24pct; Q4 gross profit margin was 37.56%, year-on-year -4.5pct.
The gross profit per box increased by 26.3 yuan year-on-year
In terms of production and marketing, in 2021, the company produced 119.17 million heavy boxes of various original float glass pieces, with a year-on-year increase of + 2.41 million heavy boxes, and sold 118.91 million heavy boxes of various original float glass pieces, with a year-on-year increase of + 5.14 million heavy boxes. In terms of single box indicators, it is estimated that the annual average sales price is 104.4 yuan / heavy box, up from + 30.4 yuan / heavy box. The price of 2021h2 raw material soda ash and fuel increased significantly (the direct material cost accounting for more than 80% of the cost was + 22.67% year-on-year). During the reporting period, the company’s single box cost increased by 4.1 yuan year-on-year to 50.6 yuan, and the single box gross profit increased by 26.3 yuan year-on-year to 53.9 yuan. In terms of price, the high boom of float glass in 2021h1 continued, the glass price was high from July to September, and the low peak season from September to October led to a sharp price reduction. Since the end of November, the margin of real estate policy has been loose, and the completion chain has warmed up under the pressure of guaranteed delivery. Superimposed on the low inventory of downstream deep-processing enterprises, there is a need to build warehouses, and the glass price has rebounded. Other key points of concern in the annual report: in terms of revenue structure, the revenue of original float glass accounted for 85.9% (year-on-year – 2.5pct), and the revenue of energy-saving building glass accounted for 14.1% (year-on-year + 2.4pct). In terms of expenses, the management expense ratio increased significantly by 4.6pct, mainly due to the increase of 436 million in performance awards, 174 million in incentive costs and 61.24 million yuan in interest income. In terms of provision, the company’s assets were impaired by 102 million yuan and the net profit attributable to the parent decreased by 83.92 million yuan.
Accelerated promotion of photovoltaic glass
Under the “one body and two wings” strategy, the business of photovoltaic glass, medicinal glass and electronic glass will continue to grow. It is suggested to focus on the photovoltaic glass and medicinal glass sector in 2022. Hunan Chenzhou 1200t / D photovoltaic glass calendering production line of the company was put into operation on April 8. After four photovoltaic calendering glass production lines under construction are put into operation, the total capacity is expected to reach 8500t / d. At the same time, the expansion of photovoltaic glass business accelerated. On March 16, it announced that it plans to invest in two new 1200 T / D photovoltaic glass production lines and supporting quartz sand bases in Malaysia, on April 7, it announced that it plans to invest in four new 1200 T / D photovoltaic glass production lines and supporting quartz sand bases in Zhaotong, Yunnan, and one 1200 T / D photovoltaic glass production line in Zhuzhou. Two rounds of price increases of photovoltaic glass, namely the first round in early March and the second round in early April. On April 7, the mainstream large single price of 3.2mm coating was 27.5 yuan / square, up 5.8% month on week, mainly driven by the rise of costs. At the same time, accelerate the investment in distributed photovoltaic power generation on the roof of the plant of the group base, with an estimated total amount of 492 million yuan and a total construction installed capacity of 143.02 MWP. In addition, the yield of borosilicate medicinal glass continues to improve, which is expected to accelerate the breakthrough at the client.
Investment suggestion: the cost and management advantages of the company’s original float glass are leading the industry, the production capacity of deep-processing energy-saving glass is gradually released, photovoltaic, pharmaceutical and high-end electronic glass contribute to the growth, and the long-term competitiveness continues to increase. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 4.51 billion yuan, 5.01 billion yuan and 5.32 billion yuan respectively, and the corresponding PE of the share price on April 8, 2022 will be 8x, 7x and 7x respectively. Maintain a “recommended” rating.
Risk warning: price fluctuation of raw materials; Epidemic disturbance; The production of photovoltaic glass and the improvement of drug glass yield were less than expected
