\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 378 Haohua Chemical Science & Technology Corp.Ltd(600378) )
Event: the company released its annual report, and realized an operating revenue of 7.424 billion yuan in 2021, with a year-on-year increase of 36.92%; The net profit attributable to the shareholders of the listed company was 891 million yuan, a year-on-year increase of 37.61%; The basic earnings per share is 0.99 yuan. The company plans to distribute a cash dividend of 2.91 yuan (including tax) to all shareholders for every 10 shares.
Comments:
The volume and price of fluororesin rose simultaneously, driving the company’s performance to exceed expectations
Among the subordinate Institutes of the company, Chenguang Institute, liming Institute, Northwest Institute and Southwest Institute contributed the main performance. In 2021, the net profit attributable to the parent company was 298 million yuan, 156 million yuan, 109 million yuan and 81 million yuan respectively, accounting for 33%, 17%, 12% and 9% of the net profit attributable to the parent company respectively, with a year-on-year increase of 101%, 4% (gas business is divided into gas companies), 30% and 11% respectively. During the reporting period, the 5000 t / a high-end PTFE production capacity of Chenguang Institute, which is dominated by fluorine materials, continued to release. The sales volume of PTFE reached 29000 tons, a year-on-year increase of 10%, the average sales price reached 44300 yuan / ton (excluding tax), a year-on-year increase of 19%, the revenue reached 1.295 billion yuan, a year-on-year increase of 32%, and the gross profit margin of fluorine materials was 28.38%, a year-on-year increase of 6.54 PCT, driving the company’s performance to exceed expectations.
National team background, strong R & D strength
The main body of the company is 11 research institutes subordinate to the former Ministry of chemical industry. The R & D team has accumulated profound strength. The R & D expenses in recent three years are RMB 353 million, RMB 423 million and RMB 543 million respectively. The R & D expense rate in 2021 was 7.31%. By the end of 2021, the number of R & D personnel was 2658, accounting for 37% of the total number of companies. The R & D strength ranks among the listed companies in the field of new materials in China.
Expand capital expenditure and realize R & D achievements
By the end of 2021, the company had 895 million yuan of projects under construction, 3.06 billion yuan of fixed assets and 5.963 billion yuan of budget for projects under construction. The projects under construction mainly rely on independent R & D technology, and the construction cycle is generally within three years. It can be predicted that the company’s large capital expenditure will continue to realize R & D achievements during the 14th Five Year Plan period, with prominent internal value.
Profit forecast, valuation and investment rating
We expect that the company’s revenue from 2022 to 2024 will be 7.85 billion yuan, 9.20 billion yuan and 10.62 billion yuan respectively, the net profit attributable to the parent company will be 1.07 billion yuan, 1.29 billion yuan and 1.57 billion yuan respectively, the EPS will be 1.17, 1.41 and 1.70 yuan / share respectively, and the current share price corresponding to PE will be 29x, 24x and 20x respectively. Considering the company’s deep accumulation of original technology and continuous large capital expenditure, we believe that the company’s future performance is expected to continue to grow steadily and give a “buy” rating.
Risk tips
The risk that the investment and construction progress of the project under construction is less than expected, and the risk that the PTFE price will fall sharply.
