\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 487 Hengtong Optic-Electric Co.Ltd(600487) )
Event:
The company announced that its revenue in 21 years was 41.27 billion yuan, a year-on-year increase of 27.44%; The net profit attributable to the parent company was 1.436 billion yuan, a year-on-year increase of 35.3%. 22q1 revenue was 9.35 billion yuan, a year-on-year increase of 34.1%; The net profit attributable to the parent company was 344 million yuan, a year-on-year increase of 30.3%, deducting 311 million yuan of non net profit, a year-on-year increase of 60.17%.
Our comments are as follows:
1. Offshore wind power has contributed to the high growth of performance in 21 years, and the optical communication business is expected to rebound
The net profit attributable to the parent company in 21 years increased by 35.3%, deducting the non net profit of 1.355 billion yuan, with a year-on-year increase of 70.29%, which is in line with market expectations. The main driving force of profit growth comes from offshore wind power and other new energy businesses. The revenue of 21 years was 41.27 billion yuan, of which 1) the business income of smart grid was 16.995 billion yuan, a year-on-year increase of 30.09%; 2) The revenue from marine energy and communication business was 5.752 billion yuan, a year-on-year increase of 73.56%; 3) The revenue of optical communication was 6.25 billion yuan, a year-on-year increase of 4.8%; 4) Industrial intelligence business revenue was 3.02 billion yuan, a year-on-year increase of 63.56%.
2. The 22q1 high overweight continued, and the optical communication price reversal provided performance flexibility
22q1 revenue (+ 34.1%) and net profit attributable to parent (+ 30.26%) achieved rapid growth, especially deducting non net profit of 311 million yuan, with a year-on-year increase of 60.17%. The growth of revenue is mainly due to the recovery of optical communication market, the growth of demand for smart grid products, industrial intelligent products and overseas markets. The high growth of non deducting profit is expected to be due to the performance elasticity of the price rise of optical fiber and optical cable.
3. Guangtongxin's gross profit margin is expected to improve gradually, the cost will be controlled continuously, and the profitability may rise
On the cost side, the overall gross profit margin of the company in 21 years was 15.95%, a decrease of 0.45pp compared with 20 years. The main reason is that the optical communication business is affected by the decline in the bidding price of optical fiber and optical cable, superimposed with the rise in the price of upstream raw materials, and the gross profit margin level decreases; Q1 in 22 years was 14.95%, down 1.0pp compared with the whole year of 21 years. The main reason is expected to be the rise of raw material prices and the decline of gross profit margin of marine business.
On the cost side, in addition to R & D, the three major cost rates of the company have declined in the past 21 years, and the cost control has achieved positive results; The downward trend of 22q1 expense rate continued. When the gross profit margin of the company fell by 1pp, the net profit margin of 22q1 fell by 0.09pp compared with the whole year of 21 years. We believe that the company's profitability may rise in the future with the increase of guangtongxin's gross profit margin and the stabilization and decline of raw material prices.
4. There are plenty of orders on hand, which will continue to increase in the future
Looking forward to the future, there are abundant orders for all business lines, and it is expected to continue the rapid growth trend in the future. 1) As of March, the amount of orders in hand for the company's submarine cable & Offshore Engineering and other marine energy projects exceeded 3 billion yuan; 2) As of March, the company's land cable related cumulative orders in hand exceeded 7.5 billion yuan; 3) In terms of marine communication, since 2021, the company has won the bid and signed more than 2.2 billion yuan in Asia Pacific, Latin America, Africa and other regions. Meanwhile, by the end of 2021, a total of US $70 million of pre-sale orders had been signed for the operation project of peace cross ocean submarine cable communication system.
Profit forecast and investment suggestions:
On the whole, the company's revenue and profit grow rapidly, and the communication + energy strategy is clear. 1) Optical communication has entered the business cycle, the price has rebounded, and the performance flexibility is considerable. 2) As one of the leading manufacturers of submarine cable and marine engineering, the company may fully benefit from the rapid development of Haifeng industry, abundant orders on hand, technical advantages, enjoy a good competitive pattern of high-voltage cable and strong overall business growth. 3) The marine communication business may usher in the replacement cycle of submarine optical cables in the future, and the acquisition of Huawei marine will enhance its competitiveness. 4) The State Grid vigorously promotes the construction of UHV, and the company's expansion into UHV market is expected to improve its profitability. Due to the impact of raw material prices, the adjusted estimated net profit of the company in 22-23 years is 2.3 billion and 2.9 billion (the previous value is 2.5 billion and 3.1 billion), corresponding to 10xpe in 22 years, and the estimated net profit in 24 years is 3.5 billion yuan, maintaining the "buy" rating!
Risk tips: upstream raw materials continue to maintain high prices, fierce industry competition, declining profitability, falling procurement prices of optical communications, and the pace of offshore wind power construction is slower than expected
