\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 172 Henan Huanghe Whirlwind Co.Ltd(600172) )
Core view
In 21 years, the net profit attributable to the parent company was 43 million yuan, with a significant year-on-year turnaround. The company achieved a revenue of 2.652 billion yuan in 2021, with a year-on-year change of + 8.24%; The net profit attributable to the parent company was 43 million yuan, significantly turning losses into profits year-on-year; The net profit deducted from non parent company was 115 million yuan, and 21q1 / Q2 / Q3 / Q4 were 0.09/0.14/0.19/0.73 million yuan respectively, which was significantly improved quarter on quarter, mainly due to the company's adjustment of superhard material product structure in 2021, which increased the production and marketing scale of diamond products cultivated with high gross profit margin, and significantly improved the profitability of its main business.
The profitability was significantly improved, and the period expenses and operating cash flow were significantly improved. The gross profit margin / net profit margin of the company was 30.83% / 1.62%, with a year-on-year change of + 10.65 / + 41.63 PCT, and the profitability was significantly improved; The rates of sales / management / Finance / R & D expenses were 2.20% / 6.82% / 11.89% / 2.91% respectively, with a year-on-year change of + 0.30 / - 2.01 / - 0.69 / + 0.29 PCT, and the overall cost rate decreased by about 2.10 PCT during the period; The net operating cash flow was 979 million yuan, a year-on-year increase of + 127.88%, with a significant improvement in cash flow.
Cultivate diamond with leading quality and bright business growth. In terms of business, the company's superhard materials / metal powder / superhard composite materials / other business revenue was RMB 1646 / 187 / 121 / 698 million respectively, with a year-on-year change of + 39.00% / - 54.83% / + 5.22% / - 5.39%, and the gross profit margin was 45.18% / 16.64% / 15.65% / 3.39%, with a year-on-year change of + 12.87 / - 0.86 / + 4.08 / - 0.13 PCT. the superhard materials business revenue and profitability increased significantly year-on-year, which was mainly due to the significant increase in the sales of diamond products cultivated by the company with high gross profit margin. After more than 20 years of technology accumulation, the company has successively completed the development of 1-20 carat high-grade colorless and color cultivated diamond synthesis technology. The color grade has reached the international leading level, and more than 90% of the products have reached the highest grade D of diamond color, and have been successfully industrialized. At present, the products are located in the middle and high-end, with stable quality and obvious color advantages. The colors of cultivated diamond products are concentrated in d-f color, with high market recognition.
Set an increase of no more than 1.05 billion yuan to the wholly-owned subsidiary of the controlling shareholder, and increase the scale to cultivate and expand the production of diamonds. On April 7, the company announced the fixed increase plan, which plans to issue 112147 million shares in a non-public manner, raising a total of RMB 800-1.05 billion to cultivate the construction of diamond industrialization projects, supplement working capital and repay bank loans. Among them, 800 million yuan was invested in the cultivation of diamond industrialization projects, and the remaining funds were used to supplement working capital and repay bank loans. Changsheng holdings, a wholly-owned subsidiary of Huanghe industry, the controlling shareholder of the company, plans to subscribe in full cash. Through this additional issuance, on the one hand, the company provides financial support for the cultivation of diamond production capacity and accelerated expansion, on the other hand, it can optimize the company's financial structure and improve the company's profitability.
Risk tip: the demand of downstream industries has fallen sharply; Industry competition intensifies; Debt risk.
Investment suggestion: the company is a leading enterprise in cultivating diamond production in China. At present, it has gradually cleared away its historical burden and returned to its main business. In 2021, it will turn losses into profits and significantly improve its operating cash flow The fixed increase will further solve the capital pressure of the company's production expansion and improve its financial situation. Under the high boom of the industry, the company's operation is expected to improve significantly. We expect the net profit attributable to the parent company in 22-24 years to be 306 / 592 / 779 million yuan, with a corresponding PE value of 48 / 25 / 19 times, maintaining the "buy" rating.
