\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 89 Jiangxi Wannianqing Cement Co.Ltd(000789) )
The performance maintained steady growth, and the dividend scale reached a record high. In 2021, the company achieved a revenue of 14.205 billion yuan, a year-on-year increase of + 13.37%, and a net profit attributable to the parent company of 1.593 billion yuan, a year-on-year increase of + 7.61%, deducting a net profit not attributable to the parent company of 1.490 billion yuan, a year-on-year increase of + 7.18%, and EPS of 2.00 yuan / share. Q4’s single quarter revenue was 4.57 billion yuan, a year-on-year increase of + 23.9%, and the net profit attributable to the parent company was 464 million yuan, a year-on-year increase of + 1.5%. The small increase in profit was mainly affected by the decrease in investment income from the disposal of long-term equity investment. The company plans to pay 8 yuan (including tax) out of 10, with a dividend scale of 638 million, a record high and a dividend rate of 40%.
The profit level is high and stable, and the cash flow performance is slightly under pressure. The company achieved 245099 million tons of cement sales in this period, a year-on-year increase of + 2.1%; The sales volume of concrete was 6.263 million m3, a year-on-year increase of + 10.32%. We estimate that the annual cement ton revenue / ton cost / ton gross profit of the company are 341 / 222 / 119 yuan respectively, with a year-on-year increase of 31 / 29 / 2 yuan respectively, of which the cost increase is mainly caused by the rise of coal and electricity prices. During the reporting period, the company’s expense ratio during the reporting period was 6.07%, with a year-on-year increase of + 0.26pct, and the sales / management / Finance / R & D expenses were 1.13% / 4.58% / 0.18% / 0.18% respectively, with a year-on-year increase of -0.16pct/0.34pct/0.20pct / – 0.12pct. The increase in management expenses was mainly due to the year-on-year increase in employee compensation, depreciation and asset amortization, and safety and environmental protection expenses; The increase in financial expenses is mainly due to the increase in the current allocation of unrecognized financing expenses and the provision of convertible bond interest. The net cash flow paid by employees for purchasing goods and services decreased by 1.67 billion to 1.62 billion during the year.
Steadily promote green development and actively extend the layout of the industrial chain.. During the reporting period, in response to the national dual carbon policy, the company optimized technological transformation, cleaner production and other links, including power generation by using the waste heat resources of cement kilns. The annual power generation reached 536 million kWh and 65900 tons of standard coal were saved; Photovoltaic power generation by using the top of raw material shed can create more than 200000 benefits every year. Throughout the year, the company’s clinker standard coal consumption decreased by 1.76kg/t year-on-year, and the comprehensive power consumption of clinker decreased by 4.14kwh/t year-on-year. In addition, while steadily developing the cement business, the company actively extends the upstream and downstream industrial chain. As of the end of the reporting period, the company has deployed nearly 30 commercial concrete enterprises in Jiangxi Province, with a commercial concrete production capacity of 19.75 million m3 / year, a year-on-year increase of 16.18%, an aggregate production capacity of 9 million tons / year and a new brick production capacity of 68 million standard blocks / year.
Risk warning: the project landing is not as expected; Deterioration of regional supply pattern; The cost increase exceeded expectations.
Investment suggestion: with the support of regional demand and maintaining the “buy” rating, the company ranks first in the cement market share in Jiangxi Province. In recent years, it has actively extended the upstream and downstream of the industrial chain, steadily promoted the prefabricated construction industry, and created and cultivated new profit growth points for the company. This year, the annual planned investment in the construction of large and medium-sized projects in Jiangxi Province is 1.18 trillion, with a year-on-year increase of 22.2%, providing good support for regional demand. It is expected that the company’s EPS in 22-24 years will be 2.1/2.2/2.3 yuan / share, corresponding to PE of 6.1/5.8/5.6x, maintaining the “buy” rating.
