\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 392 Shenghe Resources Holding Co.Ltd(600392) )
The company released the annual report of 2021: the revenue was 10.616 billion yuan, a year-on-year increase of + 30.15%; The net profit attributable to the parent company was 1.076 billion yuan, a year-on-year increase of + 232.82%; The net profit deducted from non parent company was 1.022 billion yuan, a year-on-year increase of + 132607%; The net cash flow from operating activities was 964 million yuan, a year-on-year increase of + 189.74%. 21q4 achieved a revenue of 2.825 billion yuan in a single quarter, a year-on-year increase of + 7.07% and a month on month increase of – 3.50%; The net profit attributable to the parent company was 245 million yuan, with a year-on-year increase of + 38.61% and a month on month increase of – 15.23%; The net profit deducted from non parent company was 219 million yuan, with a year-on-year increase of + 843.25% and a month on month increase of – 19.69%.
On March 30, 2022, the company issued the announcement of pre increase of performance in the first quarter of 2022: it is expected to realize the net profit attributable to the parent company of 700750 million yuan, with a year-on-year increase of 125.31% – 141.41%; The net profit deducted from non parent company was 695745 million yuan, with a year-on-year increase of 126.28% – 142.56%.
The layout of the whole industrial chain of the company, and each link still has strong potential to expand production
In terms of rare earth mineral resources, the company currently has about 50000 tons REO / year of rare earth resources. Among them, the company is entrusted to manage the Dechang continental trough rare earth mine in Liangshan Prefecture, Sichuan Province, which is the second largest light rare earth mining area in China, with an annual output of about 10000 tons of REO; The company shares in Mount pass of the United States, with an annual output of 40000 tons of REO of rare earth concentrate. All these resources are contracted by Shenghe and transported to China.
In terms of rare earth smelting and separation, the company currently has a rare earth smelting and separation capacity of about 15000 tons of REO. Sichuan base Leshan Shenghe is about 8000 tons, and Jiangxi base Chenguang rare earth is about 7000 tons. At present, the company is promoting the construction of a new rare earth smelting separation production base in Jiangsu Lianyungang Port Co.Ltd(601008) City, Jiangsu Province. The Jiangsu Lianyungang Port Co.Ltd(601008) rare earth separation project will increase the REO production capacity of at least 5000 tons.
In terms of rare earth metals, the company currently has a rare earth metal processing capacity of about 12000 tons / year. The production capacity of Chenguang rare earth in Jiangxi base is about 8000 tons, that of kebairui in Sichuan base is about 3000 tons, and that of Vietnam base is about 1000 tons. The company’s two production bases in China are undergoing intelligent transformation, and are expected to be put into trial operation within the year. In the future, the total capacity of rare earth metal processing will be increased to more than 20000 tons.
In terms of zirconium titanium separation, the company currently has a coastal placer processing capacity of 500000 tons / year, which can produce about 10000 tons of monazite every year. In addition, the company is currently promoting the construction of a new beneficiation base in Jiangsu Lianyungang Port Co.Ltd(601008) City, Jiangsu Province, and will add a zirconium titanium beneficiation project with an annual processing capacity of 1.5 million tons. The project is currently undergoing equipment installation and is planned to be put into trial operation in the second half of 2022.
Risk tip: the price rise of rare earth is less than expected; The company’s production expansion plan was less than expected.
Investment suggestion: raise the profit forecast and maintain the “buy” rating. The profit forecast is raised. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 20.9912467028937 billion, with a year-on-year growth rate of 97.7% / 17.5% / 17.3%, and the net profit attributable to the parent company will be RMB 2.142/24.342773 billion, with a year-on-year growth rate of 99.0% / 13.7% / 13.9%; Diluted eps1 22 / 1.39/1.58 yuan, the current share price corresponding to PE is 12 / 10 / 9x. Considering that the company is a mainstream rare earth enterprise in China, the overseas market layout is expected to further open the growth space in the future. At present, China’s rare earth industry is undergoing very important demand changes. The company’s operating performance is expected to fully benefit from the steady rise of rare earth price center and maintain the “buy” rating.
