\u3000\u300 Ping An Bank Co.Ltd(000001) 2 Csg Holding Co.Ltd(000012) )
Core view
The company issued the annual report of 2021. In 2021, the company realized a revenue of 13.629 billion yuan (+ 27.72%), and the accumulated provision for asset impairment during the reporting period was about 1.136 billion yuan. After asset impairment, the company still realized a net profit attributable to the parent company of 1.529 billion yuan (+ 96.24%), deducting a net profit not attributable to the parent company of 1.440 billion yuan (+ 166.59%). In 2021q4, the revenue was 3.382 billion yuan (+ 5.60%), the net profit attributable to the parent company was 19 million yuan (- 62.86%), and the net profit not attributable to the parent company was - 26 million yuan (- 80.21%).
High float price boom and increased sales of electronic glass helped the company achieve high growth in performance. In 2021, glass products (float, photovoltaic and Engineering) achieved a revenue of 11.07 billion yuan (+ 27.10%), an operating cost of 7.068 billion yuan (+ 18.24%), and a gross profit margin of 36.15% (+ 4.78 PCT). Among them, the revenue and net profit of float glass increased by 47% and 170% compared with the same period of last year, mainly benefiting from the rise in prices, the company's reserve of raw materials to hedge procurement costs and the continuous increase in the proportion of high value-added differentiated products; Due to the fact that the production capacity of photovoltaic glass processing line and Xianyang glass processing line was lower than the expected growth of 1200 tons in the same period last year, the daily net income of photovoltaic glass processing line and Xianyang glass processing line was lower than that of the same period last year, which was mainly affected by the fact that the production capacity of photovoltaic glass processing line and Xianyang glass processing line were lower than that of the same period last year The transformation and upgrading of Dongguan photovoltaic glass production line is expected to be gradually ignited and put into operation in batches from the second quarter of 2022. After all the projects under construction are completed, the company's annual production capacity of photovoltaic glass will jump significantly and become the first camp in the industry; The revenue of engineering glass business increased by 24% year-on-year, the profit decreased by 76% year-on-year, and the sales volume was 39.5 million square meters (+ 14.79%), which was mainly affected by the sharp rise of comprehensive costs such as the original film and the provision for bad debts of about 103 million yuan. The business revenue of electronic glass and display products was 1.898 billion yuan (+ 74.57%), the operating cost was 1.232 billion yuan (+ 63.09%), the sales volume of electronic glass was 273200 tons (+ 373.88%), and the electrical display sector realized an operating revenue of 1.898 billion yuan (+ 75%), mainly benefiting from the extensive use of high aluminum generation II (kk6) in Chinese high-end brand customers, the smooth industrialization of high aluminum generation II upgraded product kk6-p Qingyuan CSG phase II "one kiln and two lines" project is in good operation Cecep Solar Energy Co.Ltd(000591) and other products business revenue was 1.079 billion yuan (+ 9.08%), but the net profit was - 672 million yuan after the impairment of about 700 million yuan for the assets of Yichang CSG and Dongguan photovoltaic enterprises. Although the provision for impairment affects the revenue and profit in the short term, it is conducive to the optimization of business structure and the long-term development of the company in the long term. At present, through continuous "cost reduction and efficiency increase" and sales policy adjustment, the company takes advantage of the group's industrial chain and adopts a flexible raw material inventory reserve strategy. It is expected that the impact of raw material price fluctuations will be further reduced in the future, and the revenue and profit will maintain good growth.
The production capacity of engineering glass and electronic glass continues to expand, and the market competitiveness will be further improved in the future. In terms of engineering glass production capacity, the production capacity of Zhaoqing base and Tianjin expansion project is gradually released. The reconstruction and expansion projects of Wujiang engineering glass intelligent factory, Hefei energy-saving glass intelligent manufacturing industry base and Xianning engineering production line are being implemented as planned. The preliminary preparations for the Xi'an base project are basically ready and will be started within the year. With the gradual completion and launch of new production capacity, the product service capacity and market share will continue to improve. In terms of electronic glass, the company has been approved to build a new ultra-thin electronic glass production line and supporting R & D center with a daily melting capacity of 110 tons and Qingyuan CSG phase I upgrading project. After the completion of the two projects, CSG electronic glass will realize the comprehensive coverage of electronic glass products in all kinds of application scenarios from three generations of high aluminum to China aluminum, sodium calcium, high, medium and low-end, forming a more solid foundation for market competition.
Investment suggestion: in 2021, the company's glass products business grew rapidly, especially float glass and electronic glass. The provision for impairment has a short-term impact on the revenue and profit of Cecep Solar Energy Co.Ltd(000591) and other products, but it is conducive to the optimization of business structure in the long run. The company adheres to the development strategy of "polishing three pieces of glass and building a brand", continues to increase its technical R & D strength, continuously enhances its competitive advantage, and its performance is expected to achieve stable growth. It is estimated that from 2022 to 2024, the company's revenue will be 16.505 billion yuan, 19.626 billion yuan and 20.807 billion yuan respectively, and the net profit attributable to the parent company will be 1.914 billion yuan, 2.217 billion yuan and 2.365 billion yuan respectively, with the corresponding PE of 9.92, 8.56 and 8.02 times respectively. The company will be rated as "overweight" for the first time.
Risk tips: the project is not put into operation as expected, the demand for real estate completion is weakened, the price of raw materials is rising, and the epidemic situation is repeated.
