\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Event: in the first quarter of 2022, the company achieved a revenue of 5.132 billion yuan (+ 28.44%), a net profit attributable to the parent company of 1.836 billion yuan (+ 72.68%), and a net profit not attributable to the parent company of 1.442 billion yuan (+ 36.14%).
Comments:
Roving continues to enjoy a high popularity and Q1 performance is brilliant: in the first quarter of 2022, roving continues to enjoy a high popularity of Q4 last year. Taking the average price of 2400tex winding direct yarn of mainstream manufacturers as an example, the average price of 22q1 is 6244 yuan / ton, an increase of 6.84% year-on-year and a decrease of 0.61% month on month. The price remains high, pushing up the profit level. The gross profit margin of Q1 company is about 44.57%, an increase of about 1.4 PCT month on month and about 1.1 PCT year on year, The company continues to reduce costs and increase efficiency to consolidate its cost advantage. In terms of sales volume, it is estimated that the sales volume of roving and products in the first quarter is basically the same as that of the same period last year, the demand for thermoplastic yarn is strong, and the demand for wind power yarn has gradually warmed up. According to customs statistics, China’s export of glass fiber roving in Q1 is about 226000 tons, with a year-on-year increase of 67.4%. Foreign demand is strong, and the industry inventory remains low. From the 22-year industrial expansion plan we tracked, the supply and demand remain matched, and the high outlook of the industry is expected to continue. At the same time, the current price of rhodium powder and other precious metals remains high, and Q1 company still has some sales of precious metals (the price of rhodium powder at the end of Q1 is more than 4000 yuan / g), which thickens the company’s performance.
The production capacity of electronic yarn is released, and the price of electronic yarn is gradually falling: in Q1, the price of electronic yarn and electronic cloth continued the decline in Q4 last year. According to the average price of Zhuo Chuang 7628 mainstream electronic yarn, the average price of electronic yarn in the fourth quarter was about 11227 yuan / ton, down 29% month on month. At the same time, the tax price of electronic cloth also fell from about 6 yuan / meter at the beginning of the year to the current 3.2-3.5 yuan / meter. We believe that the price of electronic yarn fell rapidly or further squeezed the living space of small and medium-sized enterprises, Curb the disorderly expansion of enterprises, while the cost advantage of Jushi is still obvious. The expansion of production capacity has realized that the price is supplemented by quantity. The company’s third 100000 ton electronic yarn supporting 300 million meters electronic cloth production line is steadily advancing, and it is expected to be put into operation in 2022; At the same time, the company plans to carry out the cold repair and technical transformation of the electronic yarn production line with an annual output of 30000 tons. After the technical transformation is completed, the annual production capacity of the electronic yarn production line will be increased to 50000 tons (supporting the production of 160 million meters of electronic cloth); The production of 15000 tons of glass fiber tank furnace wire drawing production line and 50 million meters of electronic cloth production line will be stopped. After the completion of all projects, the company’s electronic yarn production capacity will reach 270000 tons, and the product structure will be further optimized.
Steady expansion of production capacity and consolidation of leading position: in 2021, the company’s second 60000 ton electronic yarn, third 150000 ton intelligent manufacturing production line and 150000 ton glass fiber chopped precursor production line in Tongxiang quarter were successively ignited, and the production capacity remained stable expansion. At present, the company’s third 100000 ton electronic yarn and supporting construction of 300 million electronic cloth, 40000 ton technical transformation of 50000 tons in Tongxiang base, 80000 ton technical transformation of 120000 tons in Egypt base, and a new 120000 ton roving production line are under construction, which is expected to be put into operation in 22 years; At the same time, the company has started the construction of phase 2400000 ton intelligent manufacturing production line of Jiujiang base, which is expected to be put into operation in 23 and 24 years respectively. The 120000 ton technical transformation 200000 ton production line of Tongxiang base has been started, and the company’s production capacity has been increased by 20 Fawer Automotive Parts Limited Company(000030) 0000 tons every year to further improve the market share of the industry; We believe that the company’s scale advantage, product structure adjustment ability and fine management will make the company more competitive α Attribute will reduce the impact of cyclical fluctuations and consolidate the leading position.
Actively expand the production capacity of raw materials and consolidate the cost advantage: Jushi group Jiujiang Co., Ltd. plans to implement the construction project of glass fiber intelligent manufacturing base. In order to support the construction of new base projects and meet the demand for calcium raw materials for production, Jushi Jiujiang calcium industry, a subsidiary of Jushi Jiujiang, plans to invest in the construction of intelligent deep processing project of 200000 tons of glass fiber grade calcium oxide and 75000 tons of calcium carbonate. Calcium oxide and calcium carbonate are important raw materials for glass fiber production. At present, Jiujiang calcium industry has two glass fiber grade calcium oxide production lines with an annual output of 80000 tons and a high-grade calcium carbonate production line with an annual output of 20000 tons. After being put into operation, Jiujiang transformed glass fiber grade calcium oxide will reach 280000 tons and calcium carbonate will reach 95000 tons. The company actively expanded the production capacity of raw materials, further consolidated the cost advantage, continuously reduced costs and increased efficiency, and improved its core competitiveness.
Investment suggestion: we maintain the company’s performance of 6.69 billion yuan, 7.35 billion yuan and 8.02 billion yuan respectively from 2022 to 2024, the corresponding EPS is 1.67, 1.84 and 2 yuan respectively, and the corresponding PE valuation is 8.56, 7.78 and 7.14 times respectively; Maintain the “buy” rating and maintain the target price range of 25.05-28.39 yuan.
Risk tip: the new supply of the industry exceeded expectations, the continuous decline of the global economy dragged down demand, and the rise of raw fuel prices exceeded expectations.
