\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 984 Shaanxi Construction Machinery Co.Ltd(600984) )
Events
The company achieved an operating revenue of 4.7 billion yuan in 2021, with a year-on-year increase of 18%; The net profit attributable to the parent company was 370million yuan, a year-on-year decrease of 32%; Roe was 6.1%, down 3ptc. Q4 achieved a revenue of 1.23 billion, a year-on-year decrease of 5.8%, and the net profit attributable to the parent company was – 60 million, a year-on-year decrease of 132.78%. The year-on-year growth rate of revenue attributable to the parent company was gradually decreasing.
Key investment points
The performance in 2021 was lower than expected – 360 million yuan was withdrawn for credit and asset impairment losses
The company achieved a revenue of 4.7 billion yuan in 2021, with a year-on-year increase of 18%; The net profit attributable to the parent company was 370 million yuan, a year-on-year decrease of 32%. Quarter by quarter, the year-on-year growth rate of the profit attributable to the parent company from Q1 to Q4 in 2021 gradually decreased. The Q4 revenue was 1.23 billion, a year-on-year decrease of 5.8%, and the net profit attributable to the parent company was – 60 million, a year-on-year decrease of 132.78%. The performance was lower than expected, mainly due to the decline in the prosperity of downstream real estate demand and other comprehensive effects. In 2021, China’s housing construction area increased by 5.2% year-on-year, the newly started housing area decreased by 11.4%, and the infrastructure investment increased slightly by 0.21%. The cumulative year-on-year decline of the whole year was month by month. The pangyuan index continued to decline in 2021, and the utilization rate of pangyuan ton meter 2021m7-2021m12 continued to be the lowest in the history of the month. The provision for credit impairment loss is 325 million yuan and the provision for asset impairment is 35 million yuan, reflecting a cautious attitude.
It is expected that the downstream demand will pick up, and the profitability and operating cash flow need to be improved.
The company’s gross profit margin in 2021 was 35%, down 3PCT, It is mainly due to the lower rental price of tower crane equipment, the general rise of commodity prices in China and other adverse factors. In 2021, the sales expense was 30.96 million yuan, a year-on-year decrease of 20.5%; The management fee was 350 million yuan, with a year-on-year increase of 32%, mainly due to the increase of salary and insurance premium; The R & D cost was 120 million yuan, a year-on-year increase of 3%; The financial expense was 340 million yuan, with a year-on-year increase of 38%, which was caused by interest expense. The net cash flow generated from the company’s operating activities in 2021 was 24 million yuan, a sharp decrease of 84% year-on-year, which was mainly due to short-term factors such as the purchase of accessories and the increase of labor service fees, combined with the pressure of downstream payment collection.
Capacity expansion and increase the leading market share
In 2021, the real estate boom declined. Pangyuan leasing optimized the business layout, explored new markets, orderly promoted the construction of intelligent manufacturing remanufacturing and leasing service comprehensive base, preliminarily covered the core areas, accelerated the layout of second and third tier cities, reduced the service radius, strengthened the production remanufacturing capacity, and improved the service efficiency and quality, which is expected to increase the share of leading cities.
Focus on steady growth and business elasticity in 2022.
Steady growth is expected to increase in 2022, and real estate infrastructure is expected to form a certain support. From 2022m1 to 2022m2, the new construction area of houses in China fell by 12.2% year-on-year. At present, some local governments have begun to relax the restrictions on house purchase, and the real estate industry is expected to improve; Infrastructure construction has made significant efforts. From 2022m1 to 2022m2, the national infrastructure construction investment increased by 8.1% year-on-year, which is expected to form a certain support. Short term companies are still under pressure and pay attention to the performance elasticity under the expectation of steady growth.
Profit forecast and valuation
We adjusted the company’s performance forecast to achieve a net profit attributable to the parent company of RMB 350 / 82 / 1.05 billion from 2022 to 2024, with a year-on-year increase of – 6% / 133% / 28%, corresponding to EPS of RMB 0.36/0.85/1.08 and current PE of 23 / 10 / 8 times, maintaining the “buy” rating.
Risk tips
Real estate infrastructure investment is significantly lower than expected; Other business operations of the parent company were not as expected
