\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 636 Zhuzhou Kibing Group Co.Ltd(601636) )
Event: the company released the first quarter report of 22 years. In Q1, the operating revenue was 3.063 billion yuan, an increase of 4.81% at the same time; The net profit attributable to the parent company was 522 million yuan, with a decrease of 40.69%; Deduct 483 million yuan of net profit not attributable to the parent company, with a decrease of 43.41%.
Comments:
The weak demand of the industry superimposed on the rising cost, and the performance fell year-on-year, but it is still at a historical high in the same period: in 2022q1, the shortage of funds in the real estate chain has not been effectively alleviated. In addition, the epidemic has also suppressed the release of glass demand to a certain extent, and the overall price performance is average. At the same time, the rising price of raw and fuel materials has greatly reduced the profit space of the industry. The average spot price of glass in 2022q1 was 2168 yuan / ton, a year-on-year increase of 0.73%. The national average price of heavy soda ash, the main raw material of glass, was 2495 yuan / ton, with a year-on-year increase of 61.07%; The national average price of main fuel petroleum coke was 3674 yuan / ton, a year-on-year increase of 81.31%. Note: Although the price of glass is still at a relatively high level in history, it is mainly supported by the cost of raw and fuel materials.
The company's Q1 operating cost increased by 42.35%, much higher than the operating revenue. As a result, the gross profit margin of the company's sales was 34.31%, with a decrease of 17.29pct; The net profit margin on sales was 17.03%, with a decrease of 13.04pct. However, the company's performance is still the second highest in the same period in history (second only to 2021).
During the reporting period, the company's expense rate was 15.03%, down 1.65 PCT at the same time. The sales expense rate was 0.87%, with an increase of 0.08 PCT; The management expense rate was 13.91%, with a decrease of 0.90pct; The financial expense rate was 0.25%, with a decrease of 0.82pct (mainly due to the increase of deposit income and the decrease of exchange loss). In addition, the R & D expense ratio also decreased by 1.05 PCT year-on-year to 3.80%.
The photovoltaic glass asset structure will be optimized and the photovoltaic float route will still be promoted: the company previously announced on March 17, 2022 that in order to reduce the transaction volume between the photovoltaic business segment and other business segments, further highlight the main business of the photovoltaic glass segment, and avoid the compliance defects that some administrative approval procedures are not in place, It is proposed to transfer the operating assets and liabilities involved in the two existing float ultra white glass production lines of Zhangzhou photovoltaic to Zhangzhou Qibin according to the net book value. At present, the transfer and settlement of this matter has been completed. We believe that the company's photovoltaic float technology is the first to make a breakthrough, and its products are in line with the industrial development trend with their unique advantages. It is expected to coexist with photovoltaic calendering in the future, and this route will continue to be promoted. In the context of the limited capacity of China's newly-built float process, it is not ruled out that the company may expand its photovoltaic float process capacity overseas in the future.
Profit forecast and valuation rating: we believe that with the mitigation of the epidemic and the effectiveness of policy transmission, the subsequent float glass industry is still expected to return to high prosperity. We continue to firmly recommend Zhuzhou Kibing Group Co.Ltd(601636) , and pay more attention to the long-term growth attribute of the enterprise, especially the predictable expansion of photovoltaic field. In addition, the company continues to expand its business in energy conservation, electronics, medical glass and other aspects. The above fields are growth tracks. Based on the company's 22q1 performance, we slightly raised the company's EPS for 22-23 years to 1.60 and 1.62 yuan respectively (the increase range is 0.63% and 0.62%), maintained the EPS for 24 years to 1.76 yuan and maintained the "buy" rating.
Risk tip: the recovery of float glass price is less than expected, the cost pressure of raw and fuel materials increases, the promotion of new projects is less than expected, and the expansion of new business is less than expected.
