\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 352 Zhejiang Longsheng Group Co.Ltd(600352) )
The company released its 2021 annual report. In 2021, it achieved an operating revenue of 16.66 billion yuan, a year-on-year increase of 6.76%; The net profit attributable to shareholders of listed companies was 3.37 billion yuan, a year-on-year decrease of 19.21%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 2.37 billion yuan, a year-on-year decrease of 3.1%. Among the non recurring profit and loss items, the profit and loss from changes in fair value arising from holding (or disposing) trading financial assets and liabilities reached 528 million yuan, a year-on-year decrease of 67.1%. The company plans to distribute a cash dividend of 2.5 yuan (including tax) for every 10 shares.
Key points supporting rating
The start-up was limited in the fourth quarter, and the product price rebounded. In the fourth quarter, the company achieved an operating revenue of 4.09 billion yuan in a single quarter, down 1.4% month on month; The net profit attributable to the shareholders of the parent company was 370 million yuan, down 23.7% month on month; The gross profit margin was about 20.5%, down 16.6pcts month on month. Affected by the outbreak, the company and all subsidiaries of Shangyu economic and Technological Development Zone in Hangzhou Bay, Zhejiang province gradually reduced and temporarily stopped production in an orderly manner from the afternoon of December 9, 2021, and began to resume work and production in a comprehensive and orderly manner on December 26, 2021. In the fourth quarter, the company sold 38000 tons of dyes in a single quarter, down 40.1% month on month, and 23000 tons of intermediates, down 5.7% month on month; The average sales price of dyes reached 49000 yuan / ton, an increase of 36.6% month on month; The average sales price of intermediates reached 46000 yuan / ton, an increase of 10.2% month on month. Although the average sales price of dyes and intermediates rebounded in the fourth quarter, the increase of main dyes and intermediates such as aniline and p-nitroaniline was more obvious, and the profitability of the company was under pressure in the fourth quarter.
The volume of main products rose and the price fell. In 2021, the sales volume of dyes and intermediates of the company increased by 6% and 8.3% respectively year-on-year; The average sales price decreased by 13.7% and 17.1% respectively year-on-year. According to the data of the National Bureau of statistics, from January to December 2021, the output of printing and dyeing cloth of Enterprises above Designated Size in the printing and dyeing industry was 60.581 billion meters, with a year-on-year increase of 11.76%; According to the data of China Customs, from January to December 2021, the export volume of eight categories of dyes was 28.03 billion meters, a year-on-year increase of 22.11%, and the demand in the international market recovered significantly. Since 2022, according to qicaiyun e-commerce data, the price of decentralized black ect in March is about 24-25 yuan / kg, down from the previous month. Affected by the spread of the epidemic, printing and dyeing enterprises are limited in operation and transportation, and the supply and domestic demand of the dye industry have declined, so the industry is waiting for recovery.
The real estate business progressed smoothly. In terms of real estate business, during the reporting period, the company focused on the Huaxing new town project, Longsheng fuxinli project and Huangshan Road relocation and resettlement project in Shanghai. Among them, the construction of Huaxing new town project was started on February 15, 2022; The hardcover project of Longsheng fuxinli project has come to an end, and all the residential houses in the high-rise area have been sold out; The construction of phase II of Huangshan Road relocation and resettlement housing project has completed the positive and negative zero line, and the company’s real estate business has been promoted in an orderly manner.
Valuation
Considering the sharp rise in the price of raw materials, dye enterprises are limited in operation and transportation, and the overall profitability is under pressure. The profit forecast is lowered, and the earnings per share from 2022 to 2024 are expected to be 1.17 yuan, 1.36 yuan and 1.49 yuan respectively. The corresponding P / E ratio of the current stock price is 8.7 times, 7.5 times and 6.9 times respectively, maintaining the buy rating.
Main risks of rating
The environmental protection policy was relaxed and the duration of the epidemic exceeded expectations.
