\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 636 Zhuzhou Kibing Group Co.Ltd(601636) )
The company released the first quarterly report of 2022 on April 11. In the first quarter, the company’s revenue was 3.06 billion yuan, an increase of 4.8% at the same time; The net profit attributable to the parent company was 520 million yuan, with a decrease of 40.7%. High costs squeeze profit levels.
Key points supporting rating
In the first quarter, the company’s revenue increased and net profit decreased at the same time: the company’s revenue in a single quarter was 3.06 billion yuan, an increase of 4.8% at the same time; The net profit attributable to the parent company was 520 million yuan, with a decrease of 40.7%. The net cash flow from operating activities was – 40 million yuan, a decrease of 104.1%. The sharp increase in procurement costs caused by the rise of raw fuels may be the main reason.
The gross profit margin and net profit margin decreased at the same time, and the expense rate decreased slightly: subject to the differentiation of the trend of raw fuel price and float glass price, the company’s profit was under pressure, and the gross profit margin decreased at the same time and month on month, but it still maintained a historically high level of 34.4%; The net interest rate decreased year-on-year and rebounded month on month. The four expense rates were 15.0%, with a decrease of 1.7 PCT and a decrease of 0.2 PCT month on month. Except for R & D expenses, all expenses decreased slightly.
The cost of raw fuel squeezes the profit of float glass: at the end of March, the national average price of float glass was 2058.6 yuan / ton, down 107.2 yuan / ton compared with the end of 2021. In the first quarter, the main fuel increased significantly, and the natural gas increased by 3455.6 yuan / ton, or 76.5%; Petroleum coke increased by 1480 yuan / ton, or 45.7%; Coal rose by 255 yuan / ton, or 20.7%.
Float glass demand is still expected to stabilize, and diversified layout helps growth: we believe that the completion demand is delayed but has not disappeared. After the impact of the epidemic recovers, the demand for float glass in the whole year is still expected to stabilize under the tone of steady growth. In 2022, the high-end glass project invested and built by the company in the early stage is expected to bring returns. In terms of energy-saving building glass, China’s five bases are basically formed, and the production and sales may continue to be large. In addition, the company actively promotes the R & D, production and process improvement of pharmaceutical glass and electronic glass, and speeds up the layout of photovoltaic glass business. Diversified layout is expected to help the company grow in the future.
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.
