\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Event China Jushi Co.Ltd(600176) released the first quarterly report of 2022, and realized that the operating revenue / net profit attributable to parent company / net profit attributable to parent company after deduction were RMB 5.133/18.36/1.442 billion respectively, with a year-on-year increase of 28.44% / 72.68% / 36.14%.
In the first quarter, the boom of roving continued, and the performance of electronic yarn was slightly weak. In the first quarter of 2022, the high prosperity of glass fiber roving continued, driving the high growth of the company’s performance. In the first quarter, the roving price was high as a whole. The average price of 2400tex winding direct yarn Q1, a mainstream manufacturer of glass fiber, was 6226 yuan / ton, up 5.78% year-on-year and down 0.42% month on month. In the first quarter, overseas demand was strong, and the export volume of glass fiber roving increased significantly. In January, February and March, the export volume of glass fiber roving was 714 / 6.46 / 90100 tons, with a year-on-year increase of 94% / 52% / 62%. The performance of electronic yarn in the first quarter was slightly weak. Due to the release of electronic yarn production capacity, the price decreased significantly. The average price of G75 electronic yarn from mainstream manufacturers in the first quarter of 2022 was 11431 yuan / ton, down 10.42% year-on-year and 28.63% month on month.
The profitability of the company was further improved. In the first quarter of 2022, the company achieved a gross profit margin of 44.57%, a year-on-year increase of 1.05 percentage points and a month on month increase of 1.38 percentage points; The net profit margin of sales was 36.81%, with a year-on-year increase of 10.07 percentage points and a month on month increase of 6.51 percentage points. The profitability of the company continued to improve. As a leading enterprise in the glass fiber industry, the company continues to accelerate the upgrading of intelligent manufacturing, reduces production costs through technological transformation, and forms a cost control system such as “increasing, saving and reducing work method”. In addition, as an enterprise with the largest production capacity in the world, the company has obvious advantages of economies of scale. The company’s expense rate decreased significantly in the first quarter. During Q1, the expense rate was 8.93%, a year-on-year decrease of 2.51 percentage points, of which the sales / management / R & D / financial expense rates were 0.73% / 3.12% / 2.70% / 2.38% respectively, a year-on-year decrease of 0.14/1.19/0.41/0.78 percentage points.
In the past 22 years, the leading position of the industry has been further consolidated. It is estimated that the company will continue to put into operation in 2022: Jushi (Tongxiang) intelligent production line with an annual output of 100000 tons of electronic yarn and Jushi Egypt tank furnace drawing production line with an annual output of 120000 tons of glass fiber. With the gradual expansion of the company’s production capacity and the continuous enhancement of scale advantages, the company occupies a more powerful leading position in product supply capacity and pricing power, and further consolidate the company’s leading position in the glass fiber industry.
Structural adjustment is still the future development direction, and there are broad prospects for new application fields in the middle and high-end downstream. The company timely adjusts the product structure according to the changes of market demand, and continuously improves the production and marketing proportion of high-precision, difficult, green and special products. Benefiting from the influence of “double carbon” policy, the certainty of demand in the field of energy conservation and environmental protection will drive the accelerated penetration of glass fiber products; The accelerated expansion of wind power industry is expected to bring greater demand increment to the wind power yarn Market; The lightweight trend of new energy vehicles makes the prospect of glass fiber chopped raw yarn products more broad.
As a leading enterprise in the glass fiber industry, the investment proposal has obvious advantages in cost, scale, technology and brand. With the improvement of the penetration rate of glass fiber products and the continuous adjustment of the company’s product structure, the company’s business has great room for development. It is estimated that the net profit attributable to the parent company in 22-24 years is 6.5/71/7.9 billion yuan, the earnings per share in 22-24 years is 1.62/1.78/1.96 yuan, and the corresponding P / E ratio is 8.85/8.02/7.28. Maintain the “recommended” rating based on the company’s good development expectations.
The risk indicates the risk that the new capacity of the industry exceeds the expectation; The demand of downstream application fields is lower than the expected risk.
