\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event: the company disclosed the annual report of 2021, and achieved revenue of 106.87 billion yuan in 2021, yoy + 6.8%; Net profit attributable to parent company is 12.03 billion yuan, yoy-22.0%, gross profit margin is 25.85%, yoy-3.97 PCT, net profit margin is 11.62%, yoy-4.35 PCT; 2021q4 achieved revenue of 18.59 billion, yoy-30.2%; The net profit attributable to the parent company is -530 million, yoy-117.9%, the gross profit margin is 18.87%, yoy-9.62 PCT, the net profit margin is -2.9%, yoy-14.72 PCT.
The revenue in 2021 slightly exceeded the expectation, and the net profit attributable to the parent company in Q4 was slightly lower than the expectation. In 2021, the company’s revenue was 106.87 billion yuan, with a year-on-year increase of 6.8%. In terms of business: 1) mining machinery: revenue was 41.75 billion yuan, yoy + 11.2% (the sales volume of national mining machinery increased by 4.6% year-on-year in 2021), gross profit margin was 28.9%, yoy-5.7pct. It has been the champion of sales volume in the Chinese market for 11 consecutive years, and the market share of excavators has continued to increase significantly, with sales exceeding 100000 mark, ranking first in the world for two consecutive years; 2) Concrete machinery: revenue of 26.67 billion yuan, yoy-1.4%, gross profit margin of 25.0%, yoy-2.3 PCT, the company ranks first in the world; 3) Hoisting machinery: revenue of 21.86 billion yuan, yoy + 12.6%, gross profit margin of 19.6%, yoy-2.1pct. The market share of the company’s truck crane continued to increase and exceeded 31%, and the market share of large and medium crawler cranes continued to increase, with an overall market share of more than 40%, ranking first in China; 4) Piling machinery: revenue of 5.41 billion yuan, yoy + 68.6%, gross profit margin of 20.8%, yoy-3.8pct; 5) Accessories and others: 5.17 billion, yoy-24.3%, gross profit margin 40.7%, yoy-4.2pct. 2021q4 revenue fell by 30.2% year-on-year, which was mainly affected by the downturn of the construction machinery industry (2021q4 excavator industry sales yoy-47.5%, crane industry sales yoy-51.3%). In 2021q4, the profit attributable to the parent company turned negative. In addition to the decline of gross profit margin, the total expense rate during the period reached 24.7%, an increase of 8.3pct year-on-year, mainly due to the increase of R & D expense rate of 3.8pct and sales expense rate of 2.6pct. The increase of R & D expense rate is related to digitization and electrification, and the increase of sales expense rate is related to increasing the assistance of agents. The gross profit margin of excavator decreased by 5.7pct in the whole year. The reasons for the decline are as follows: 1) weak industry demand; 2) It may be related to the small proportion of excavation.
Digitization, electrification and internationalization continued to advance. In 2021, the company promoted the construction of 22 lighthouse factories, and a total of 14 lighthouse factories have been completed and reached production capacity. The production capacity has been increased by 70%, the manufacturing cycle has been shortened by 50%, and the overall process automation rate has been greatly improved. Beijing pile machine factory was successfully selected into the new list of Lighthouse factories in the global manufacturing field released by the world economic forum in September 2021, becoming the first certified lighthouse factory in the global heavy industry. In 2021, the company sold more than 1000 electric engineering vehicles, with sales of nearly 1 billion yuan, ranking first in the industry in terms of market share. In 2021, positive progress was made in internationalization. The company achieved an international sales revenue of 24.846 billion yuan, a significant year-on-year increase of 76.16%, including 19.022 billion yuan excluding Putzmeister, an increase of 109%; International revenue accounted for 23.4% of operating revenue, up 9.2 percentage points year-on-year.
Investment suggestion: considering the good development momentum of various businesses of the company, the net profit attributable to the parent company in 20222024 is expected to be RMB 124.1/144.2/18.4 billion respectively, and the corresponding PE is 12x / 10x / 8x respectively, maintaining the “recommended” rating.
Risk tip: downside risk of industrial demand and risk of industrial price war.
