\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 172 Henan Huanghe Whirlwind Co.Ltd(600172) )
The company issued the 2021 annual report
Focus on the main business of superhard materials and improve profitability: in 2021, the company achieved an operating revenue of 2.652 billion yuan, a year-on-year increase of 8.24%; The net profit attributable to the parent company is 43 million yuan, and the net profit not attributable to the parent company is 115 million yuan. In 2021, the supply of cultivated diamonds / industrial diamonds in the field of superhard materials was in short supply, and the price rise contributed to the company’s performance increment. The company’s superhard material products achieved a sales revenue of 1.645 billion yuan, an increase of 38.99% over the same period last year; The gross profit margin was 45.14%, with a year-on-year increase of + 12.83pct.
Increase the production capacity of fixed code, and the actual controller’s holding subsidiaries subscribe in full
On April 6, 2022, the company announced that it planned to issue 112147 million shares to Huanghe Changsheng Holdings (held by Qiao Qiusheng, the actual controller of the company), with a total fund-raising of 800-1.05 billion yuan, which is intended to be used for “cultivating diamond industrialization project (800 million yuan)” and “supplementing working capital and repaying bank loans (250 million yuan)”. The cultivation diamond industrialization project will expand 500 large cavity presses, with an annual output of 586600 carats of cultivated diamonds and an annual sales revenue of 966 million yuan.
Structural decline in debt pressure and expected release of performance
By the end of 2021, the company’s short-term loan balance was 4.631 billion yuan (year-on-year + 45%), the long-term loan balance was 458 million yuan (year-on-year + 51%), and the annual financial cost was 315 million yuan (year-on-year + 2.33%). With the improvement of the company’s main business performance of superhard materials and the strong support of the local government for the company’s development, the company’s financing channels have been widened and the financing cost has decreased. Through the replacement of low interest debt, the overall debt pressure has decreased structurally, and the future performance is expected to be released continuously.
Investment suggestion: as a leading enterprise in the cultivation of Diamond & industrial diamond production, the company will speed up the layout of production capacity, enjoy the high bonus increase of the industry, and improve the marginal pressure of financial expenses to ensure the release of performance. The net profit of the parent company is expected to be “14x-30x / 2024” and “14x-30x / 2024” respectively.
Risk tip: downstream demand is less than expected, industry competition intensifies, and the company’s production capacity is less than expected.
