\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 869 Far East Smarter Energy Co.Ltd(600869) )
Event: on April 25, the company released the annual report of 2021 and the first quarterly report of 2022. In the 21st year, the company achieved a revenue of 20.871 billion yuan, a year-on-year increase of + 5.39%; The net profit attributable to the parent company was 531 million yuan, a year-on-year increase of + 131.39%; The revenue and return to the parent company reached a record high and turned losses into profits. In a single quarter, 21q4 achieved a revenue of 5.935 billion yuan, a year-on-year increase of + 2.74%; The net profit attributable to the parent company was 108 million yuan, a year-on-year increase of + 105.81%. 22q1 achieved a revenue of 4.192 billion yuan, a year-on-year increase of + 11.27%; The net profit attributable to the parent company was 87 million yuan, a year-on-year increase of – 27.63%; Net operating cash flow was 256 million yuan, a year-on-year increase of + 16.67%; 22q1 revenue hit a record high in the first quarter.
Smart cable network industry leader, strong growth momentum. The company is a leading enterprise of intelligent cable network. In the past 21 years, the company’s intelligent cable network achieved a revenue of 18.114 billion yuan, a year-on-year increase of + 5.24%, a net profit of 667 million yuan, a year-on-year increase of + 66.02%, a net interest rate of 3.68%, and a year-on-year increase of 1.35 PCT; 22q1 company’s intelligent cable network achieved a revenue of 3.827 billion yuan, a year-on-year increase of + 18.75%, and a net profit of 154 million yuan, a year-on-year increase of + 102.44%. In the future, the company’s smart cable network business growth momentum is strong. 22q1 company won / signed more than 10 million contract orders of RMB 5.148 billion, a year-on-year increase of + 74.81%. It maintains strong competitiveness in the fields of smart grid, photovoltaic, wind power, intelligent manufacturing, green building and so on. The downstream customer structure is good, the orders on hand are sufficient, and the business growth momentum is strong.
The growth of smart batteries is good and is expected to accelerate in the future. The company’s battery business maintained a good growth trend. 22q1 smart battery achieved an operating revenue of 200 million yuan and a net profit of – 69 million yuan. At present, there are abundant orders on hand and it is expected to achieve profit and loss balance in 22 years. Specific business aspects: 1) lithium battery: the company achieved a revenue of 539 million yuan in 21 years, a year-on-year increase of + 44.79%; The net profit was -403 million yuan, with a year-on-year decrease of 864 million yuan; Reach stable cooperation with leading light travel enterprises such as maverick electric; In February, 22, it won 228 million yuan of orders for overseas household energy storage system. 2) Copper foil: in 21 years, the company achieved a revenue of 457 million yuan, a year-on-year increase of + 23.16%, and a net profit of 47 million yuan, a year-on-year increase of + 144365%. At present, the company’s phase I project is under construction and is expected to be put into operation in 23 years, with an annual output of 50000 tons after being put into operation. The company set foot in the field of copper foil in 2017. The product performance index is at the leading level in the industry and has passed the Ningde supply chain system certification. The 50000 ton high-precision lithium battery copper foil project in the Far East Yibin Intelligent Industrial Park base is accelerating the construction, and the business volume of the company will be further expanded in the future.
Smart airport business is expected to maintain stable growth. From 2021 to 2035, an average of 11 new airports will be added every year, and the construction progress of the airport market will be accelerated in the future. The company’s subsidiary, Beijing Hangan, has all qualifications in the field of civil aviation construction and is leading in many sub sectors. The number of airport projects undertaken in China has reached 121, accounting for 49% of the total number of national transport airports; In the past 21 years, the company’s smart airport achieved a revenue of 1.565 billion yuan and a net profit of 120 million yuan. The annual contract amount was 2.056 billion yuan, a record high; 22q1 achieved a revenue of 158 million yuan and a net profit of 13 million yuan. At present, the orders on hand exceed 2 billion yuan. The company’s smart airport business is expected to grow steadily in the future.
Investment suggestion: the company has sufficient orders and good downstream growth. We expect that the company’s revenue from 2022 to 2024 will be RMB 26.183 billion, RMB 36.080 billion and RMB 49.027 billion respectively, with growth rates of 25.5%, 37.8% and 35.9%; The net profit attributable to the parent company was 1.032 billion yuan, 1.598 billion yuan and 2.514 billion yuan respectively, with a growth rate of 94.3%, 54.9% and 57.3%, corresponding to the closing price on April 26. The PE of the company for 22-24 years was 8x, 5x and 3x. Maintain a “recommended” rating.
Risk tip: the risk that the capacity expansion speed is lower than expected; The risk that the downstream demand is less than expected.
