\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 01 Tangshan Jidong Cement Co.Ltd(000401) )
Core view
Downward demand and reduced sales put pressure on performance. In 2022, Q1 company achieved an operating revenue of 4.968 billion yuan, a year-on-year increase of - 2.51%, and a net profit attributable to the parent company of - 233 million yuan, a year-on-year decrease of 182 million yuan. The decline of the company's single quarter performance is mainly due to the decrease of sales volume, which is consistent with the overall trend of the industry. The influencing factors mainly include: (1) due to the influence of transportation control and environmental protection, the construction progress of downstream enterprises is slow and the downstream demand performance is poor; (2) The multi-point outbreak of the epidemic has a certain impact on the progress of resumption of work and production;
(3) the implementation of staggered peak production is good, which affects the output of the company.
The profit level is slightly under pressure, and the asset-debt structure remains optimized. In the first quarter of this year, the cement price center in North China, the core region of the company, continued its high level last year, up 29.36% compared with the first quarter of last year. However, affected by the rising price of raw and fuel materials at the cost side and the decline in sales volume, the profitability of the company was slightly under pressure. In 2022, Q1 company achieved a gross profit margin of 20.6%, a year-on-year decrease of 5.28 percentage points, a month-on-year decrease of 4.4 percentage points compared with Q4 last year, and the net profit margin was - 5.2%, a year-on-year decrease of. The company's expense ratio decreased by 1.89 percentage points year-on-year to 23.98%, of which the sales / management / Finance / R & D expense ratio achieved 2.6% / 17.6% / 3.3% / 0.5% respectively, with a year-on-year decrease of -1.9pct / + 0.08pct / - 0.06pct / + 0.03pct. Affected by the decline in sales and the increase in costs, the net cash flow from operating activities was -699 million, compared with 418 million in the same period last year. The company's capital and debt structure continued to be optimized. By the end of the first quarter, the company's asset liability ratio had reached 44.49%, with a year-on-year increase of -5.40pct.
Promote asset integration and enhance regional voice. During the reporting period, the company continued to promote the M & A and integration of the cement industry, completed the acquisition of the remaining 72% equity of Shanxi China Resources Fulong cement, and further strengthened the voice in North China. Last year, the company completed the absorption and merger of 47.09% equity of the joint venture Jinyu Tangshan Jidong Cement Co.Ltd(000401) (Tangshan) Co., Ltd., which will help to further improve the management efficiency, asset quality and profitability of the company in the future.
Risk warning: the increase of supply exceeds expectations; The implementation of the project is not as expected; The epidemic situation is repeated.
Investment suggestion: regional demand is supported and the "buy" rating is maintained. Under the background of "steady growth", the construction of major projects in Beijing, Tianjin and Hebei has made a good start. In the first quarter of 2022, 43 projects have been started in xiong'an new area, with a total investment of 60.1 billion yuan; More than 200 major projects of Beijing Urban sub center have been broken down item by item and made steady progress. The clinker production capacity of the company accounts for more than 50% of the total production capacity of Beijing Tianjin Hebei region and has a strong regional voice. In the future, the company will continue to expand the production capacity of cement and aggregate and strengthen the green transformation. We believe that the operation quality of the company still has room for improvement. It is estimated that the EPS of 202224 will be 1.51/1.62/1.70 yuan / share respectively, and the corresponding PE will be 7.0/6.5/6.2x, maintaining the "buy" rating.
