\u3000\u3 China Vanke Co.Ltd(000002) 318 Zhejiang Jiuli Hi-Tech Metals Co.Ltd(002318) )
Event: the company issued the announcement of 2021 and the first quarterly report of 2022: the operating revenue in 2021 was 5.97 billion yuan, an increase of 21% year-on-year; The net profit attributable to the parent company was 790 million yuan, a year-on-year increase of 3%. In 2022q1, the company achieved an operating revenue of 1.32 billion yuan, a year-on-year increase of 2%; The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 36%.
Comments:
Significant improvement in Q1 performance: due to the impact of limited production and power supply and export tax rebate, the net profit attributable to the parent company in Q4 in 2021 was 180 million yuan, down 23% month on month; However, in 2022q1, the company realized a net profit attributable to the parent company of 190 million yuan, with a year-on-year and month on month increase of 36% and 7% respectively, setting the highest net profit attributable to the parent company in Q1 since listing, and the profit was significantly improved.
Continuous promotion of multiple projects: the main production line of the company’s 5500km precision pipe project has been successfully put into production at the end of September 2021. The company’s annual output of 1000 tons of aerospace materials and products, 5000 tons of special alloy pipe prefabricated parts and pipe maintenance services, 55000 tons of high-quality Aerospace nuclear power materials and 5000 tons of high-end superalloy materials are advancing in an orderly manner.
Strong incentives for multiple capital operations: the company successfully completed the redemption and delisting of the non convertible part of the convertible bonds publicly issued in 2017 in 2021; The 12.55 million shares of the company held in the second phase of the employee stock ownership plan have all been successfully withdrawn; In 2021, the Company repurchased 16.8 million shares in the secondary market, accounting for 1.72% of the company’s total share capital, which was used to implement the company’s equity incentive plan or employee stock ownership plan.
High R & D and outstanding innovation achievements: in 2021, the company invested 260 million yuan in R & D, with a year-on-year increase of 33%. The revenue of products with high added value and high technology content accounted for 19% of the operating revenue. At the same time, Zhejiang Jiuli Metal Materials Research Institute Co., Ltd., a wholly-owned subsidiary, was established. In 2021, the company presided over / participated in the formulation and revision of 2 national standards and 6 industrial standards, and 12 patents were effectively authorized.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be 6.5/71/8 billion yuan respectively, with a year-on-year increase of 8% / 10% / 12%; Based on the company’s performance in 2021, we raised the company’s net profit attributable to the parent company from 9.2/10.6 to 9.8/1.16 billion yuan from 2022 to 2023, that is, the company’s net profit attributable to the parent company from 2022 to 2024 was 9.8/11.6/1.38 billion yuan respectively, with a year-on-year increase of 23% / 18% / 20%, and the corresponding PE was 13 / 11 / 9x respectively. Considering the continuous promotion of the company’s nuclear power, superalloy and other projects, the high boom business is expected to contribute to the performance increment; In addition, the company’s valuation is still at a low level, so the “buy” rating of the company is maintained.
Risk warning: price fluctuation of raw materials and risk of supply; Risk of adjustment of export tax rebate policy
