\u3000\u300 Ping An Bank Co.Ltd(000001) 2 Csg Holding Co.Ltd(000012) )
Large amount of impairment provision was made, and the performance still maintained a significant growth. In 2021, the company realized a revenue of 13.629 billion yuan, an increase of 27.72% and a net profit attributable to the parent company of 1.529 billion yuan, an increase of 96.24% and a net profit attributable to the parent company of 1.440 billion yuan after deduction, an increase of 166.56% and an EPS of 0.50 yuan / share. It is proposed to pay 2 yuan (including tax) for 10 shares, which is in line with the previous performance forecast. The substantial increase in performance was mainly due to the large increase in the average price of flat glass during the reporting period and the rapid improvement in the performance of electronic glass (without considering the provision for impairment). The company accrued 1.136 billion yuan of impaired assets and credit reserves throughout the year, mainly including Cecep Solar Energy Co.Ltd(000591) business assets, Qingyuan CSG phase I electronic glass assets under construction, goodwill and some litigation related receivables.
Float glass has a brilliant performance, and electronic glass has developed rapidly. In 2021, the company’s glass products business achieved a total revenue of 11.07 billion yuan, a year-on-year increase of 27.10%, a gross profit margin of 36.15%, and a year-on-year increase of 4.78 percentage points, of which the revenue and net profit of float glass business increased by 47% and 170% respectively, mainly benefiting from the rise in prices, the strengthening of cost control and the increase in the proportion of high-end differentiated products; The revenue of photovoltaic glass business was flat year-on-year, and the net profit decreased by 38%, which was mainly affected by the increase of market supply and the year-on-year decrease of price; The revenue of engineering glass business increased by 24% year-on-year, mainly benefiting from the gradual release of production capacity of Zhaoqing base and Tianjin expansion project. Due to the impact of withdrawing 103 million yuan of bad debt reserves, the profit decreased by 76% year-on-year. The electronic glass business maintained rapid development. During the reporting period, high aluminum second-generation kk6 was widely used in China’s high-end brand customers. The high aluminum second-generation upgraded product kk6-p was successfully industrialized. The annual revenue of the electronic display sector was 1.898 billion, a year-on-year increase of 75%, and the net profit after impairment provision was 236 million, a year-on-year increase of 46%.
Go hand in hand and make steady progress in business expansion. Five 1200t / D production lines of photovoltaic glass located in Fengyang and Xianning will be ignited gradually in batches from the second quarter of this year, and two 1200t / D production lines will be built in Beihai, Guangxi; The third generation of high aluminum electronic glass products have been verified. At present, Hebei windows 110t / D ultra-thin electronic glass production line is under construction, and the competitive advantage of electronic glass is expected to be further consolidated and strengthened in the future; In terms of engineering glass, the reconstruction and expansion projects of Wujiang intelligent project, Hefei and Xianning production lines are progressing steadily. It is expected to be basically completed this year, and the construction of Xi’an base is expected to start within this year. In the future, with the gradual release of production capacity, the market share of the company’s engineering glass is expected to further increase.
Prompt: the supply risk is higher than expected; The implementation of the project is not as expected; The epidemic situation is repeated.
Investment suggestion: leading deep processing enterprises should maintain the “buy” rating. As an old glass enterprise in China, the company has obvious core competitiveness in the field of glass deep processing. In recent years, the company adheres to the development path of “polishing three pieces of glass and building a brand”, and firmly expands and strengthens the main glass industry. With the company’s capacity investment in photovoltaic glass, electronic glass and engineering glass in the future, the future performance is expected to continue to release. It is estimated that the EPS in 202224 will be 0.620.72/0.80 yuan / share respectively, and the corresponding PE will be 9.9/8.6/7.7x, Maintain the “buy” rating.
