\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 636 Zhuzhou Kibing Group Co.Ltd(601636) )
High performance and high dividend. In 2021, the company achieved a revenue of 14.573 billion, a year-on-year increase of + 51.12%, a net profit attributable to the parent company of 4.234 billion, a year-on-year increase of + 133.38%, and an EPS of 1.6125 yuan / share, which was in line with the previous performance forecast. The revenue and performance reached a record high, mainly due to the simultaneous rise of the volume and price of float glass throughout the year, the release of energy-saving glass production capacity, and good cost control. In the fourth quarter, affected by factors such as falling demand, falling prices and rising raw fuel prices, the revenue and net profit attributable to parent company were 3.807 billion and 575 million respectively, with a year-on-year increase of + 23.2% and – 5.6% respectively. The company plans to pay 8.0 yuan (including tax) in 10, with a dividend scale of 2.147 billion, a record high, with a dividend rate of 50.71%, corresponding to the current dividend rate of about 5.9%.
Excellent cost control level, abundant and healthy cash position. The company’s annual revenue of float glass was 12.419 billion yuan, a year-on-year increase of + 47.37%, and 119 million heavy boxes were sold, a year-on-year increase of + 4.51%. The box revenue, box cost and box cost were 104.44 yuan (+ 30.36 yuan), 50.58 yuan (+ 4.08 yuan) and 53.86 yuan (+ 26.28 yuan) respectively. The cost side only increased slightly against the background of the sharp rise in the price of soda ash, which was mainly relieved by overseas procurement, futures hedging and other means; With the release of early-stage production capacity and the commissioning of Changxing energy conservation and Tianjin energy conservation, the annual sales volume of energy-saving glass reached 32.6 million Ping, a year-on-year increase of + 48.79%, the revenue reached 2.032 billion, a year-on-year increase of + 83.16%, the proportion in the total revenue increased by 2.44 PCT to 13.95%, and the business gross profit margin increased by 8.84 PCT to 42.02% compared with the previous year. Due to the implementation of open-ended contracts, the cost pressure was transmitted relatively smoothly. Benefiting from the increase in revenue and profitability, the company achieved an annual net operating cash flow of 5.073 billion, a year-on-year increase of + 62.71%; The book cash and trading financial assets totaled 5.234 billion, a year-on-year increase of + 341.5%. After excluding interest bearing liabilities, the net cash on the book was about 1.628 billion, compared with -1.152 billion in the previous year.
Overweight the layout of photovoltaic glass and orderly carry out deep processing and large-scale expansion. At present, five production lines of photovoltaic glass are under construction. Since this year, it has been announced that a total of seven production lines will be built in Malaysia, Zhaotong, Yunnan and Zhangzhou, Fujian, with a total capacity of 8400t / D, and supporting investment in quartz sand production base. The electronic glass business is gradually increasing its market share and brand effect. At present, the phase II project is being actively promoted. The first phase of medicinal glass has been put into commercial operation in October 21. The second phase of the project is under construction, and another two production lines are under preparation.
Risk warning: the completion of the real estate is lower than expected; The promotion of production capacity is less than expected; The cost rise exceeded expectations.
Investment suggestion: transformation and upgrading will help future development and maintain the “buy” rating
Under the guidance of the company’s “one body and two wings” strategy, the leading position and competitive advantage of the company’s float glass business are obvious. With the gradual release of the production capacity of photovoltaic glass, engineering glass, electronic glass and medicinal glass in the future, the product structure is expected to be optimized and upgraded, and further promote the company’s performance growth. It is expected that the company’s EPS will be 1.38/1.62/1.97 yuan / share in 202224, corresponding to PE of 9.5/8.1/6.7x, maintaining the “buy” rating.
