\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
The company released the first quarterly report of 22 years, and the revenue in the reporting period was 5.13 billion, yoy + 28%, qoq-13%; RMB 1.8 billion, with a net profit of RMB 1.8 billion and a net profit of RMB 0.6 billion; Net profit deducted from non parent company was 1.44 billion, yoy + 36.1%, QoQ + 19.8%, exceeding expectations. We speculate that the non profit and loss mainly comes from the sale income of rhodium powder.
22q1 profitability further improved than expected, and the positive contribution of exports may play a major role
22q1 revenue decreased month on month, and it is speculated that the sales volume decreased month on month. It is speculated that the impact of the epidemic since 21 / 03 is the main reason. The weak demand (some of the epidemic impact the demand) and logistics factors affect the delivery rhythm. At the end of March, the overall inventory of the industry increased month on month (still at a reasonably low level), and the company’s 22q1 inventory turnover days also increased to a certain extent (22q1 inventory turnover days 79 days, compared with 21fy + 16 days). The strong roving price in 22q1 industry shows that the outlook for the follow-up demand in the industry is positive, and the continuous rise of export volume and price since 21h2 has also formed an effective support. On the other hand, since the end of 21q4, the price of electronic cloth has fallen rapidly, which has a certain negative impact. The gross profit margin of 22q1 company has further increased month on month. The comprehensive gross profit margin of 22q1 company is 44.6%, yoy + 1.1pct, QoQ + 1.4pct. It is speculated that the upward export is a better hedge against the impact of the falling price of electronic cloth. At the same time, the change of product structure may also have a certain impact (such as the increase of thermoplastic proportion, etc.). 22q1 company deducts 28.1% of non parent net interest rate, yoy + 1.6pct, QoQ + 7.6pct. It is speculated that 22q1 has not accrued incentive expenses (22q1 / 21q4 / 21q3 management expense rates are 3.1% / 11.5% / 6.4% respectively); The scale effect and cost control effect continue to appear, and there is no significant increase in the absolute amount of cost under the background of the steady increase of production capacity. In addition, 22q1 single quarter minority shareholders’ profit and loss remained at a high level, which also proved the steady improvement of factory efficiency in the United States.
The persistence of high prosperity in the industry may continue to exceed expectations, and the company’s alpha continues to verify
The release elasticity of new supply in the industry is weakening, the subsequent roving price fluctuation may be significantly weakened, and the high-level profitability of the industry continues to exceed market expectations; The stronger / more determined capacity expansion capacity of the leader contains higher value and some expectations are poor. Jushi, as a global leader in roving and electronic cloth, 22q1 further verified the company’s excellent ability to reduce costs / control expenses, and continued to consolidate its cost advantage in the normalized cold repair and upgrading of its leading competitors. (1) the company recently announced that it plans to implement the cold repair technical transformation for the 30000 ton glass fiber tank kiln production line and 100 million meter electronic cloth production line put into operation in Chengdu in 2014, and upgrade it to a 50000 ton supporting 160 million meter electronic cloth production line, with a construction cycle of one year; 2) Tongxiang completed the cold repair of the 120000 T / a glass fiber production line in 2014, implemented the cold repair technical transformation, adopted the latest kiln technology / intelligent manufacturing technology, upgraded to the 200000 t glass fiber production line, and the construction period is within 1 year). At the same time, the capacity expansion execution is strong, and the company’s alpha continues to verify. In addition, the optimization of product structure and the improvement of added value drive the company’s cycle fluctuation to weaken and consolidate its competitiveness and growth.
Maintain profit forecast and “buy” rating
Maintaining the previous performance forecast, it is estimated that the net profit attributable to the parent company in 22-24 years will be 5.8/68/7.9 billion, yoy-3% / + 16% / + 16% respectively. We are optimistic about the re consolidation of Jushi’s leading position and the continuous weakening of industry cycle fluctuations, the company’s value revaluation opportunities, maintain the 20×22 target PE, maintain the target price of 29.14 yuan, and maintain the “buy” rating.
Risk warning: the incremental supply of glass fiber exceeded expectations; Demand growth is lower than expected; Electronic cloth competition exceeded expectations
