\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 586 Shandong Jinjing Science And Technology Stock Co.Ltd(600586) )
Performance review
On April 11, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 6.922 billion yuan, a year-on-year increase of 41.7%, and the net profit attributable to the parent company was 1.307 billion yuan, a year-on-year increase of 295.1%, which was within the scope of performance forecast and in line with expectations. In the first quarter report of 2022, the operating revenue was 1.782 billion yuan, a year-on-year increase of 21.2%, and the net profit attributable to the parent company was 145 million yuan, a year-on-year decrease of 59.2%.
Business analysis
High raw material prices affect Q1 profits: the gross profit margin in 2021 was 34.3%, up + 14.1pct year-on-year, mainly benefiting from the sharp rise in the prices of float glass, soda ash and other products; In 2022q1, due to the high price of raw fuel, the price of superimposed float glass decreased, and the gross profit margin narrowed to 16.2%, year-on-year -13.9pct.
Malay production capacity supporting international thin-film module enterprises are not affected by the US Anti circumvention investigation: the packaging glass of thin-film photovoltaic modules produced by the company adopts float process, and now has the ability to produce ultra white TCO coated glass of thin-film modules. On January 22, the 500t / D thin film module back panel glass production line of the company in Malaysia was officially ignited. It is mainly produced by international well-known thin film photovoltaic module manufacturers. It is not affected by the photovoltaic anti circumvention investigation in the United States. It is expected that the thin film module panel glass production line will be put into operation in 2022.
The production capacity of calendered glass is bound to be the leader, and the hearing process of 1000 ton kiln has been completed: the company’s Ningxia 600t / D photovoltaic calendered glass production line was officially ignited in 2021q4. According to the cooperation agreement previously signed with Longji, the products of 2022q1 company entered the formal supply stage. At the same time, the company continues to promote the production expansion plan in the field of photovoltaic glass. According to the information on the official website of Ningxia Ministry of industry and information technology, the company plans to put into operation two more 1200t / D photovoltaic calendering glass production lines in May 2023. At present, the hearing process has been completed, and the production of 1000 ton kiln is expected to improve the production efficiency and increase the performance from 2023 to 2024.
The shares to be repurchased are used for equity incentive to demonstrate the management’s business confidence: the company also issued the share repurchase plan for 2022. The total amount of shares to be repurchased is RMB 100150 million, the price is no more than 12 yuan / share, and the corresponding number of shares is 8.33-12.5 million, accounting for 0.58% – 0.87% of the total share capital, which is used to implement the employee stock ownership plan or equity incentive, reflecting the company’s confidence in the future development prospect.
Profit adjustment and investment suggestions
As the price rise of raw materials exceeded the previous expectations, according to our latest judgment on the production and sales volume and gross profit margin of the company’s products, we adjusted the net profit of 20222023e to RMB 1.6 (- 20%) and RMB 1.9 (- 20%) respectively. It is estimated that the net profit of the company in 2024 will be RMB 2.3 billion, corresponding to EPS of RMB 1.12, 1.34 and 1.63 respectively, maintaining the target price of RMB 17, corresponding to 15 times 2022pe, and maintaining the “buy” rating.
Risk tip: the epidemic situation worsened beyond expectations, the downstream demand was less than expected, the price rise of raw materials was more than expected, and the product price performance was less than expected.
