\u3000\u3 China Vanke Co.Ltd(000002) 353 Yantai Jereh Oilfield Services Group Co.Ltd(002353) )
Event overview: the company released the annual report of 2021. During the reporting period, the company achieved a 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 decrease of 6.17%. From the single quarter of Q4, the company achieved a revenue of 3.248 billion yuan in 2021q4, an increase of 74.67% month on month; The net profit attributable to the parent company was 440 million yuan, an increase of 14.88% month on month.
Operating revenue hit a record high, and the performance of order guarantee continued to grow. Benefiting from the surging international oil price in 2021, the annual average prices of WTI crude oil futures and Brent crude oil futures reached US $68.01/barrel and US $70.94/barrel respectively, both of which recorded the largest annual increase, and the situation of the oil and gas industry continued to improve; At the same time, under China’s strategy of ensuring energy security, China’s three major oil companies continue to implement the “seven-year action plan”, continue to make efforts in the development of unconventional oil and gas resources such as shale oil and gas and tight oil and gas, continue to increase the demand for oil and gas equipment, and the company’s operating revenue is growing continuously. In terms of products, in 2021, the company’s revenue from oil and gas equipment manufacturing and technical services reached 7.056 billion yuan, a year-on-year increase of 6.47%; The revenue from maintenance, transformation and trading accessories was 1.227 billion yuan, a year-on-year increase of 2.75%; The revenue from environmental protection services was 464 million yuan, a year-on-year increase of 1.82%. According to the announcement, in 2021, the company obtained a total of 14.791 billion yuan of orders, an increase of 51.73% over the same period last year. At the end of the year, the stock orders were 8.86 billion yuan. It is expected that the orders are expected to ensure the continuous and stable growth of revenue performance this year.
Under the influence of multiple factors, profitability is slightly under pressure. Due to the impact of the global epidemic in 2021 and the rising prices of raw materials, bulk commodities and international shipping, the company’s profitability declined slightly. In 2021, the company’s gross profit margin and net profit margin were 34.86% and 18.36% respectively, down 3.04 PCT and 2.40 PCT respectively. In terms of expense rate, the company’s expense rate during the period was 16.57%, a year-on-year decrease of 0.56pct; Among them, the sales expense rate, management expense rate, financial expense rate and R & D expense rate were 4.93%, 7.80%, 0.24% and 3.6% respectively, with year-on-year changes of 0.45, 0.58, -1.53 and -0.06pct respectively. The expense rate continued to be optimized during the period.
The oil and gas equipment industry is expected to continue to pick up, and the oil and gas + new energy two wheel drive company will develop. Since the beginning of 2022, affected by the geopolitical risks of the conflict between Russia and Ukraine, crude oil has been in a tight balance between supply and demand, and international oil and gas prices will remain at a medium high level in the short term; At the same time, the investment of international oil companies and oil service companies in oil and gas exploration and development has increased significantly compared with that in 2021. The increase of oil price and capital expenditure of oil and gas companies contribute to the continuous recovery of oil and gas equipment industry. While expanding and strengthening the field of oil and gas equipment, the company actively distributes new energy fields such as lithium battery cathode materials. According to the company’s announcement, the company has established a joint venture with Xiamen Jiasi Energy Technology Co., Ltd. and Zhao Jinbao team of Jiageng innovation laboratory to jointly promote the R & D, production and sales of pure silicon carbon products, pure silicon oxide products and silicon-based composite cathode materials, and invested in the integration project of 100000 tons of lithium-ion battery cathode materials in Tianshui city. The company actively distributes the field of new energy and is expected to realize the dual main business strategy of “oil and gas equipment + new energy” and jointly promote the development of the company.
Investment suggestion: we expect the company to achieve revenue of RMB 10.835/12.917/15.424 billion from 2022 to 2024, net profit attributable to parent company of RMB 2.289/27.78/3.352 billion respectively, and PE corresponding to current share price of 17 / 14 / 11 times respectively, maintaining the “recommended” rating.
Risk tip: the international oil price fluctuates greatly, and the capital expenditure of oil companies is lower than expected.
