\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event: on April 23, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 106873 billion yuan, a year-on-year increase of 6.82%; The net profit attributable to the parent company was 12.033 billion yuan, a year-on-year decrease of 22.04%; The non net profit deducted was 10.291 billion yuan, a year-on-year decrease of 26.22%; Diluted earnings per share reached 1.43 yuan / share, down 22.28% year-on-year.
The cycle trend of the construction machinery industry has changed, the sales volume of the company’s leading products is still leading, and the market share continues to increase. In 2021, the company’s overall operating revenue showed a trend of high before low, which was more consistent with the sales law of construction machinery. Among them, the sales revenue of mining machinery was 41.75 billion yuan (+ 11.25%), ranking the first in China’s market sales, and the share continued to increase significantly; The sales revenue of concrete machinery is 26.674 billion yuan (- 1.40%), ranking the first brand in the world; The sales revenue of hoisting machinery was 21.859 billion yuan (+ 12.62%), and the overall market share exceeded 40%, ranking first in China. In 2021, the overall sales volume of excavators increased by 4.6%, and the industry changed from high-speed growth to stable operation. However, the cumulative sales volume of excavators decreased significantly in the first quarter of 2022. We believe that the performance of the company in the first quarter may be under pressure together with the sales volume of the industry, but the leading position of the company’s construction machinery is still difficult to shake.
The profit declined in the fourth quarter, the rise of raw materials and freight suppressed the profit, and the overall operation was still stable. In 2021, the net profit attributable to the parent company was 1.233 billion yuan, a year-on-year decrease of 22.04%, and the net cash flow from operating activities was 11.904 billion yuan, a year-on-year decrease of 11.29%. Among them, the company’s single quarter profit in the fourth quarter was negative, or affected by the decline in excavator sales in the fourth quarter. From the perspective of gross profit margin of different products, the gross profit margin of each core product of the company has declined to varying degrees. The gross profit margin of excavation machinery is 28.94% (-5.73 PCTs), and that of concrete machinery is 24.99% (-2.31 PCTs); In terms of regions, the gross profit margin of overseas sectors was basically the same as that of the previous year. We believe that the cost side price rise caused by the rise of raw materials and freight, combined with the tightening of the sales margin of the construction machinery industry, will inevitably reduce the profit space of the company’s products. The company’s sales collection rate remained high, the loan overdue rate of each major business unit was controlled at a historically low level, and the overall operation was still stable.
We will continue to vigorously promote the transformation of R & D achievements and accelerate the transformation of the “two new and three modernizations” strategy. In 2021, the company invested 6.509 billion yuan in R & D, a year-on-year increase of 30.4%, accounting for 6.1% of operating revenue; R & D personnel increased by 35% in the same period. The company has the leading R & D and innovation ability in the industry. With continuous and vigorous R & D investment, the R & D projects doubled in 2021, and 186 new products such as the world’s largest crawler crane and new energy mixer were launched. The quantity and quality of scientific and technological achievements are good. During the reporting period, the company achieved an international sales revenue of 24.846 billion yuan, a year-on-year increase of 76.2%. International projects were comprehensively accelerated, focused on the mainstream markets in Europe and America, and listed a variety of main sales models to improve the coverage. The company adheres to long-term ism, increases R & D investment in new products and technologies, and comprehensively promotes intellectualization, electrification and internationalization. We believe that positive results will be achieved in the future.
Investment suggestion: considering the company’s high market share in the construction machinery industry, the current prosperity of the industry and the company’s profitability, we expect the company’s performance to continue to grow steadily. The company has made a forward-looking layout of the “three hearts and two modernizations” strategy to realize digital transformation and promote the release of production capacity. We expect the company to realize a net profit attributable to the parent company of RMB 11.402/12.10/12.85 billion from 2022 to 2024, corresponding to 11.41/10.83/10.13 times of PE from 2022 to 2024, maintaining the “recommended” rating.
Risk tip: the risk that the sales volume of construction machinery is less than expected, the risk that the international expansion is less than expected, and the risk of intensified market competition.
