\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 438 Tongwei Co.Ltd(600438) )
Conclusions and suggestions:
The company released its annual report for 2021, realizing an operating revenue of 63.49 billion yuan, yoy + 43.6%, a net profit attributable to the parent company of 8.21 billion yuan, yoy + 127.5% (net profit after deduction of 8.49 billion yuan, yoy + 252.4%), equivalent to EPS of 1.82 yuan. The company’s performance is in line with the performance express.
The company released the 2022q1 quarterly report, realizing an operating revenue of 24.685 billion yuan, with a year-on-year increase of 132.5%, and a net profit attributable to the parent company of 5.19 billion yuan, with a year-on-year increase of 513% (net profit after deduction of non net profit of 5.135 billion yuan, with a year-on-year increase of 545%), equivalent to EPS of 1.15 yuan. The performance complies with the performance forecast and is at the upper limit of the performance forecast.
By the second half of 2022, the new capacity of polysilicon in China is expected to be limited. With the significant increase of photovoltaic demand outside China, the price of polysilicon is expected to remain high. The company continues to expand production capacity, which is expected to bring better performance flexibility. We expect the net profit of the company in 2022 and 2023 to be 18.6 billion yuan and 20.1 billion yuan respectively, with a year-on-year increase of 126% and 8%, and EPS of 4.1 and 4.5 yuan respectively. The current share price corresponds to 8.5 and 7.9 times of PE in 22 and 23 years, respectively. We give “buy” suggestions.
The price and volume of silicon products rose together, driving the rapid growth of the company’s annual performance: the company released the annual report of 2021, realizing an operating revenue of 63.49 billion yuan, yoy + 43.6%, a net profit attributable to the parent company of 8.21 billion yuan, yoy + 127.5% (net profit after deduction of non-profit of 8.49 billion yuan, yoy + 252.4%), equivalent to EPS of 1.82 yuan. The performance report is in line with the company’s performance express. Among them, Q4 company achieved an operating revenue of 16.79 billion yuan, yoy + 34.1%; The net profit attributable to the parent company was 2.26 billion yuan, yoy + 721.9% (net profit after deduction was 2.556 billion yuan, a year-on-year increase of 415.4%), equivalent to 0.5 yuan of EPS. The company’s dividend plan is to distribute a cash dividend of 9.12 yuan (including tax) for every 10 shares, with a dividend proportion of 50% and a corresponding dividend rate of about 2.6%.
The rapid growth of the company’s performance is mainly due to the rapid expansion of downstream production capacity of photovoltaic industry chain, the supply of upstream silicon products is in short supply, and the volume and price rise together; In 2021, the company shipped 109300 tons of silicon materials, with a year-on-year increase of 26.8%, and the business revenue of silicon materials and chemical industry increased by 187% year-on-year. In terms of gross profit margin, with the sharp rise in the price of silicon products, the gross profit margin of this sector increased by 32 percentage points, driving the overall gross profit margin of the company to 27.68%, a year-on-year increase of 10.6 percentage points. In terms of expenses, the three expense rates of the company decreased slightly by 0.29 percentage points, of which the sales expense rate and financial expense rate decreased by 0.31 PCT and 0.53 PCT respectively year-on-year; The management expense ratio increased by 0.55pct year-on-year.
The price of Q1 silicon material remained high and the performance continued to increase: the company released the first quarterly report of 2022, realizing an operating revenue of 24.685 billion yuan, a year-on-year increase of 132.5%, and the net profit attributable to the parent company was 5.19 billion yuan, a year-on-year increase of 513% (net profit after deduction was 5.135 billion yuan, a year-on-year increase of 545%), equivalent to EPS of 1.15 yuan. The performance complies with the performance forecast and is at the upper limit of the performance forecast. In the first quarter, the silicon market continued to be in short supply, the price remained high, and the company’s new production capacity was effectively released, driving the company’s performance to increase significantly. Q1 company recorded a gross profit margin of 34.1%, a year-on-year increase of 13.36 percentage points. Benefiting from the scale effect, the three expense rates of the company decreased significantly, among which the management expense rate and sales expense rate decreased by 1PCT and 1.75pct respectively year-on-year, and the financial expense rate was basically the same year-on-year.
The company will continue to expand its production capacity this year. It is expected that by the end of the year, the production capacity of silicon materials and battery chips will reach 230000 tons and 70gw respectively, with a year-on-year increase of 27.8% and 55.6% respectively, and continue to consolidate the company’s leading position in the industry of silicon materials and battery chips.
Profit expectation: we expect the net profit of the company in 2022 and 2023 to be 18.6 billion yuan and 20.1 billion yuan respectively, with a year-on-year increase of 126% and 8%, and EPS to be 4.1 and 4.5 yuan respectively. The current share price corresponds to 8.5 and 7.9 times of PE in 22 and 23 years respectively. We give “buy” suggestions.
