\u3000\u3 China Vanke Co.Ltd(000002) 353 Yantai Jereh Oilfield Services Group Co.Ltd(002353) )
Key points
The net profit was affected by the increase of impairment provision, and the cash flow performance was bright
Yantai Jereh Oilfield Services Group Co.Ltd(002353) in 2021, the operating revenue reached 8.78 billion yuan, with a year-on-year increase of 5.8%; The net profit attributable to the parent company was 1.59 billion yuan, a year-on-year decrease of 6.2%, which was mainly affected by the increase of impairment provision from 50 million in 20 years to 170 million in 21 years; Earnings per share is 1.66 yuan. Among them, the revenue from oil and gas equipment manufacturing and technical service business was 7.06 billion yuan, a year-on-year increase of 6.5%; The revenue from maintenance, transformation and trading parts business was 1.23 billion yuan, a year-on-year increase of 2.8%. In 2021, the comprehensive gross profit margin was 34.9%, a year-on-year decrease of 3.0 percentage points, which was mainly affected by the rise of raw material prices and the high international shipping prices. In 2021, the net operating cash inflow was 810 million yuan, with a significant year-on-year increase of 157.0%.
Full orders are in hand and breakthroughs have been made in key markets
Under the influence of the epidemic, the company’s new orders in China and foreign markets increased. According to the annual report, in 2021, the company obtained 14.79 billion yuan of orders, a year-on-year increase of 51.7%, reaching a new record; At the end of 2021, the orders on hand reached 8.86 billion yuan. Breakthroughs have also been made in the company’s key market development: the company’s first order for a 30MW generator set supporting electric drive fracturing and other equipment was placed in the United States; We obtained the order of phase 5 project of production facilities of about 2.7 billion yuan in Kuwait. We believe that the company’s fracturing equipment and other products are expected to make greater breakthroughs in the North American market and obtain more new customer orders.
Establish a joint venture of silicon-based negative electrode materials to build a “oil and gas + new energy” two wheel drive
According to the announcement on November 30, 2021, Jerry established a joint venture to jointly promote the R & D, production and sales of pure carbon silicon products, pure silicon oxide products and silicon-based composite negative electrode materials; The phase I production capacity of the joint venture is located in Xiamen, Fujian. The production capacity is planned to be 100 tons of pure carbon silicon, 500 tons of pure silicon oxide and 6000 tons of silicon-based composite negative electrode; The phase II production capacity is located in Tianshui, Gansu Province. The production capacity is planned to be 300 tons of pure carbon silicon, 900 tons of pure silicon oxide and 12000 tons of silicon-based composite negative electrode. The establishment of the joint venture marks the company’s official entry into the field of lithium battery cathode materials and the construction of “oil and gas + new energy” two wheel drive.
The short-term performance fluctuation did not change the upward trend of the economy, and the “buy” rating was maintained
In the short term, the company’s profit margin is slightly impacted by factors such as rising raw material costs. We correspondingly reduce the company’s net profit forecast for 22-23 years by 5.9% / 3.2% to 2.06/2.47 billion yuan, and introduce a 24-year net profit forecast of 2.93 billion yuan, corresponding to EPS of 22-24 years of 2.15/2.58/3.06 yuan respectively (the impact of diluting EPS in the fixed increase plan is not considered temporarily). The boom of oil and gas investment outside China is improving, and the short-term cost fluctuation does not change the upward trend of the boom. We maintain the “buy” rating of the company.
Risk tips: risk of changes in China’s oil and gas development policies; International oil price fluctuation risk; Exchange rate fluctuation risk; Product competition intensifies risks; New product promotion is less than expected risk; Adverse risks of overseas epidemic control
