\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 089 Tbea Co.Ltd(600089) )
Key investment points
In 2021, the net profit attributable to the parent company was 7.255 billion yuan, with a year-on-year increase of 196.34%
In 2021, the company achieved a total operating revenue of 61.371 billion yuan, a year-on-year increase of 37.39%; The net profit attributable to the parent company was 7.255 billion yuan, a year-on-year increase of 196.34%; The net profit attributable to the parent company after deduction was RMB 5.829 billion, with a year-on-year increase of 224.27%. In 2022q1, the company achieved a total operating revenue of 17.139 billion yuan, a year-on-year increase of 81.28%; The net profit attributable to the parent company was 3.122 billion yuan, a year-on-year increase of 47.28%. The continuous and substantial growth of the company’s performance is mainly due to the rise of polysilicon price and sales volume, the increase of power generation capacity of self operated new energy power stations, the rise of coal price and sales volume; Non recurring gains and losses in 2021 are mainly gains and losses from changes in fair value of investment China Southern Power Grid Energy Efficiency&Clean Energy Co.Ltd(003035) and government subsidies.
New energy business: silicon material profits remained high, and the power generation of new energy power stations increased significantly.
In 2021, the company produced 78200 tons of polysilicon and sold 75800 tons of polysilicon. Benefiting from the rising price and sales volume of silicon materials, the company’s new energy industry and engineering realized a revenue of 19.969 billion yuan, a year-on-year increase of 57.39%; The gross profit margin was 40.14%, with a year-on-year increase of 25.79pct. The company has accelerated the technological transformation of polysilicon production line in Xinjiang and the construction of 100000 ton and 200000 ton polysilicon projects in Inner Mongolia and Zhundong. It is expected that the production capacity of 100000 ton silicon material in Inner Mongolia will be put into operation from August to September 2022, and the dominant position of the company in polysilicon market is expected to be further consolidated. In 2021, the company’s new energy power station business grew rapidly, with 593.09mw of BT projects completed, not transferred and under construction, and the installed capacity of new energy operating power station realizing power generation revenue reached 2.2gw. Among them, wind power generation reached 3.159 billion kwh, a year-on-year increase of 345.26%; Photovoltaic power generation reached 840 million kwh, a year-on-year increase of 0.71%.
Power transmission and transformation business: the leading position is stable and is expected to benefit from the construction of new power system.
In 2021, the company’s transformer products achieved a revenue of 10.926 billion yuan; The income of wire and cable products was 8.985 billion yuan; The complete set of power transmission and transformation projects achieved a revenue of 3.336 billion yuan. As the state proposes to build a new power system with new energy as the main body, green power supply and intelligent distribution network will become the focus of future development, driving the growth of demand for power transmission and transformation products. The company’s transformer industry has reached the world leader in the development of key power transmission and transformation equipment such as ultra-high voltage AC / DC power transmission and transformation; The cable industry has the ability to produce 1000kV and below expanded diameter conductors, 500kV and below cross-linked cables and cable accessories, and is expected to fully benefit from the construction of national new power system. In 2021, the company’s power transmission and transformation industry signed a contract of nearly 26.6 billion yuan in China. In the future, the company will continue to stabilize the stock market, and vigorously explore the market and enhance its competitiveness in the fields of land scenery base, offshore wind power, county wide distribution and so on.
Profit forecast and valuation
The polysilicon business of the company continues to be booming, and the power transmission and transformation business is expected to benefit from the construction of new power system. We expect the net profit attributable to the parent company from 2022 to 2024 to be 8.822 billion yuan, 9.88 billion yuan and 10.734 billion yuan respectively, with corresponding EPS of 2.33, 2.61 and 2.83 yuan / share, and corresponding valuations of 8.16, 7.28 and 6.71 times respectively.
Risk tip: polysilicon price falls; The price of raw materials has risen.
