\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
Event: the company released the 2022q1 report. During the reporting period, the operating revenue was 6.55 billion, a year-on-year increase of + 114.75%; The net profit attributable to shareholders of listed companies was 871 million, a year-on-year increase of + 1.86%. Performance exceeded expectations.
1. Q1 performance revenue and profit slightly exceeded expectations: at the beginning of 2022, under the circumstances of geopolitics, rising prices of raw materials, multi-point epidemic outbreak and incomplete mitigation of core shortage, the company’s revenue and profit increased, exceeding industry expectations. The total profit of Q1 reached 1.067 billion, a year-on-year increase of + 3%. Among them, the exchange loss was 135 million yuan, only 70.32 million yuan in the same period last year. The rise in the price of soda ash reduced the total profit by 70.15 million yuan compared with the previous year, and the rise in the price of shipping reduced the total profit by 53.08 million yuan compared with the previous year. Assuming deducting the relevant effects, the total profit was + 24.35% year-on-year, with excellent performance.
2. Continue to be optimistic about the sky curtain + aluminum trim dual wheel drive, and the company ushers in the second growth: at this stage, the automobile is no longer a simple means of transportation. The development of the new four modernizations of the automobile makes more and more new technologies integrated into the automobile glass, and also provides new opportunities for the development of the automobile glass industry. We predict that the curtain glass will usher in a large outbreak stage in 2023. As the global leader of the curtain, the company is expected to account for more than 50% of the market and has huge growth space. Secondly, the company acquired Sam company to develop the aluminum trim business and form a synergy with the packaging and supply of side window glass. It is deeply recognized by the car factory and has full orders. It will also bring revenue growth in the next 2-3 years. Sky curtain + aluminum trim dual wheel drive, continue to be optimistic about the long-term development of the company.
Investment strategy: automotive glass is a global leading enterprise. We expect the net profit attributable to the parent company to be 4.5 billion and 5.8 billion in 22 / 23, and give it a “buy” rating.
Risk tip: the sales volume of customers is lower than expected, and the cost of raw materials continues to rise due to international influence.
