\u3000\u3 China Vanke Co.Ltd(000002) 353 Yantai Jereh Oilfield Services Group Co.Ltd(002353) )
Key investment points
In 2021, the company achieved a performance of 1.586 billion yuan, a year-on-year increase of – 6.2%; in 2021, the company achieved a total operating revenue of 8.776 billion yuan, a year-on-year increase of + 5.8%; The net profit attributable to the parent company was 1.586 billion yuan, a year-on-year increase of – 6.2%; Net profit deducted from non parent company was 1.479 billion yuan, a year-on-year increase of – 11.8%. In Q4 single quarter, the company achieved an operating revenue of 3.248 billion yuan, a year-on-year increase of + 13.1%; The net profit attributable to the parent company was 440 million yuan, a year-on-year increase of – 23.6%. Based on the principle of prudence, the company has withdrawn 170 million yuan of asset impairment reserves. After considering the impact of income tax and minority shareholders’ profits and losses, the company’s net profit attributable to the parent company in 2021 is 145 million yuan.
The cost pressure has increased, and the period expenses have been well controlled: in 2021, the company’s gross profit margin was 34.9%, a year-on-year -3.0pp. Among them, in Q4 of 2021, the company’s gross profit margin was 31.9%, with a year-on-year increase of -6.4pp. In terms of period expenses, the annual sales expenses were 433 million yuan, a year-on-year increase of + 16.4%; The management fee was 368 million yuan, a year-on-year increase of + 24.8%; The financial expenses were 21 million yuan, a year-on-year increase of – 85.8%; The R & D cost was 316 million yuan, a year-on-year increase of + 4.1%. In terms of period expense rate, the annual sales expense rate was 4.9%, year-on-year + 0.4pp; The management fee rate was 4.2%, year-on-year + 0.6pp; The financial expense ratio was 0.2%, year-on-year -1.5pp; The R & D expense rate was 3.6%, year-on-year -0.1pp, and the total expense rate during the period reached 13.0%, year-on-year -0.5pp.
The inflection point of China and overseas recovery has been determined, and the market expansion in North America is expected to continue to make breakthroughs: for China, under the requirements of energy supply guarantee in the 14th five year plan, exploration and development will still be strengthened, and the new shale oil development will further stimulate the demand for relevant equipment; Overseas, North American shale activity is continuing to repair as oil and gas prices hit record highs. According to the data of primaryvision on April 8, the number of active fracturing teams in North America has climbed to 275, which has doubled compared with the beginning of last year, and the activity has exceeded the 50% dividing line. With the further improvement of shale activity, overseas market expansion is expected to continue to make breakthroughs.
Investment suggestion: continue to be optimistic about the elasticity of the company as the leader of global fracturing equipment and the certainty of benefiting from the recovery outside China. It is estimated that the performance from 2022 to 2024 will be RMB 2.03/25.3/3.02 billion respectively, corresponding to pe19, 15 and 12 times, maintaining the “buy” rating.
Risk tip: the international oil price fluctuates sharply, the capital expenditure of oil companies is less than expected, and the repeated epidemic makes the demand recovery less than expected
