\u3000\u300 Ping An Bank Co.Ltd(000001) 2 Csg Holding Co.Ltd(000012) )
Csg Holding Co.Ltd(000012) released the annual report of 2021: during the reporting period, the company achieved an operating revenue of 13.629 billion yuan, a year-on-year increase of 27.72%; The net profit attributable to shareholders of listed companies was 1.529 billion yuan, a year-on-year increase of 96.24%; The net profit attributable to non listed shareholders increased by 14.59% year-on-year to 16.6 billion yuan.
Key investment points:
The advantages of main products are obvious, and the company’s revenue and net profit have increased significantly. In 2021, the company achieved a total operating revenue of 13.629 billion yuan, a gross profit of 4.78 billion yuan and a net profit of 1.44 billion yuan deducted from non parent company, with a year-on-year increase of 27.72%, 48.13% and 166.59% respectively, of which electronic glass business and float glass business all achieved the best performance in history. The company adopts large kiln production, one kiln with multiple lines, wide calendering and other technologies to reduce the glass production cost per unit area. The cost rate of the company has decreased significantly during the period. In 2021, the gross profit margin is 35.07% and the net profit margin is 11.45%, all of which are the highest level in history.
Engineering glass has opened a new round of production expansion, the national layout has been continuously improved, and the future performance of the products is expected to continue to improve. At present, the company has engineering glass processing centers in Dongguan, Tianjin, Chengdu, Wujiang and Xianning, and has achieved an annual production capacity of coated insulating glass of more than 20 million square meters and coated glass of more than 45 million square meters. In order to better serve Beijing Tianjin Hebei, Yangtze River Delta, Guangdong Hong Kong Macao Great Bay area and fill the market gap, the company put into operation the Tianjin Engineering expansion project and Zhaoqing high-grade energy-saving glass project in 2021, and plans to put into operation the Wujiang engineering glass intelligent factory project and Xi’an new engineering glass base project in 2022, so as to further accelerate the release of production capacity and improve the company’s operating profit. With the company’s in-depth development of the high-end market of engineering glass, the company’s penetration is expected to accelerate and drive the performance growth of the business sector.
The dual carbon target supports the long-term needs of the industry, and photovoltaic glass is expected to be among the first echelon. According to the prediction of China Photovoltaic Industry Association, the global photovoltaic installed capacity will exceed 300gw in 2025, with an annual compound growth rate of more than 20%. The continuous and rapid growth of photovoltaic installed capacity and the improvement of the permeability of double glass modules and large-scale modules will continue to promote the growth of photovoltaic glass consumption demand. The company will accelerate the construction of photovoltaic glass projects in Fengyang and Xianning, and is expected to gradually ignite and put into operation in batches from the second quarter of 2022. At the same time, pay close attention to the transformation and upgrading of Dongguan photovoltaic glass production line to make it adapt to the future industrial technology development and product competition. After all the projects under construction are completed, the company’s annual photovoltaic glass production capacity will jump significantly and rank among the first echelon of the industry.
Profit forecast and investment rating. As one of the most competitive and influential large enterprises in China’s glass industry, the company is committed to the development of energy-saving, renewable energy and new material industries. We predict that the company’s net profit attributable to the parent company from 2022 to 2024 will be 1.932 billion yuan, 2.908 billion yuan and 3.430 billion yuan respectively, with corresponding EPS of 0.63 yuan, 0.95 yuan and 1.12 yuan respectively, and corresponding PE of 9.01x, 5.99x and 5.08x. The company will be rated as “overweight” for the first time.
Risk warning: downstream demand is less than expected; Rising raw material costs; Overcapacity of photovoltaic glass; The company’s capacity expansion is less than expected; The epidemic has repeatedly affected the economy; Adverse changes have taken place in the macro environment.
