\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event: on the evening of April 22, the company released its 2021 annual report.
The performance of the annual report was lower than expected, with the rise of raw materials and the increase of R & D expenses; It is expected that the company will gradually increase in the next few quarters, with a revenue of 106.9 billion yuan in 2021, a year-on-year increase of 7%; The net profit attributable to the parent company was 12 billion yuan, a year-on-year decrease of 22%. The net profit of the parent company fell by 18.6 billion yuan year-on-year, of which the net revenue fell by 18.4 billion yuan year-on-year. In 2021, the gross profit margin of the company’s sales was 26%, with a year-on-year decrease of 4.0pct, and the net profit margin of sales was 12%, with a year-on-year decrease of 4.4pct. The main reasons for the decline in performance were: 1) the price of raw materials rose sharply; 2) Factors such as substantial increase in R & D expenses: the company invested 7.7 billion yuan in R & D in 2021, up 23% from 6.26 billion yuan in 2020, accounting for 7.25% of the total revenue. We expect 2021q4 to be the worst quarter for the company in recent years. With the promotion of “steady growth” in 2022, infrastructure real estate is expected to improve marginally. The quarterly performance in 2022 is expected to improve gradually, and the performance will turn upward.
The gross profit margin of the three core products declined slightly, mainly affected by factors such as raw materials and rising international freight rates
In 2021, the revenue of the company’s three major products mining machinery / concrete machinery / hoisting machinery was about 41.8/267/21.9 billion yuan respectively, with a year-on-year increase of 11% / decrease of 1% / increase of 13%. Accounting for 39% / 25% / 20.5% of the total revenue respectively, with a year-on-year increase of 1.6 PCT / decrease of 2.1 PCT / increase of 1.1 PCT. Affected by the price of raw materials, the rise of international freight and other factors, the gross profit margin of each product decreased slightly, 29% / 25% / 19.6% respectively, with a year-on-year decrease of 5.7pct/2.3pct/2.1pct.
The strong is always strong, and the excavator sales volume ranks first in the world for two consecutive years; The competitiveness of the field outside the excavator continues to improve
In terms of products, the company’s excavator sales volume ranks first in the world for two consecutive years and first in China for 11 consecutive years. Concrete machinery ranks first in the world; The market share of large and medium-sized crawler cranes and pavers ranked first in the country, exceeding 40% and 30% respectively; The market share of truck cranes continued to increase, exceeding 31%.
The “two new and three modernizations” strategy has been established, and positive results have been achieved in intellectualization, electrification and internationalization
The company increased the R & D of new products and technologies. In 2021, the R & D investment totaled 7.7 billion yuan, a year-on-year increase of 23%, of which the R & D expenditure was about 6.5 billion yuan, a year-on-year increase of about 30%. The development of intelligence, electrification and internationalization continued to advance and achieved positive results. Intellectualization: promote the construction of 22 lighthouse factories, and a total of 14 lighthouse factories have been completed and reached production capacity, with a 70% increase in production capacity, a 50% reduction in manufacturing cycle and a significant increase in automation rate; Electrification: set up a special electrification scientific research team and subsidiaries, and completed 24 electrification technology projects, 34 electric products and 20 listed electric products throughout the year, covering the three technical fields of pure electricity, power exchange and hydrogen fuel; Internationalization: in 2021, the international revenue was about 24.8 billion yuan, with a year-on-year increase of 76%, accounting for 23% of the total revenue, with a year-on-year increase of 9.2pct.
Profit forecast
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 123 / 144 / 16.6 billion respectively, with a year-on-year increase of 2% / 17% / 16%. Corresponding to P / E12 / 10 / 9x, the company is the leader in the field of excavators. It is in a leading position in the industry in the field of intelligent, motorized and international construction machinery. It is optimistic about the strong alpha attribute of the company in the medium and long term and maintains the “buy” rating.
Risk tips: 1) the epidemic affects the start-up, and the downstream recovery is less than expected; 2) Price fluctuation of raw materials
