\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 143 Kingfa Sci.& Tech.Co.Ltd(600143) )
Event: on April 25, 2022, the company released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company realized an operating revenue of 40.199 billion yuan, a year-on-year increase of + 14.7%; The net profit attributable to the parent company was 1.661 billion yuan, a year-on-year increase of – 63.8%. The weighted average roe was 11.1%, a year-on-year decrease of 19.8pct. The gross profit margin of sales was 16.6%, a year-on-year decrease of 9.2pct; The net profit margin on sales was 4.1%, down 9.0pct year-on-year. The net cash flow from operating activities was RMB 2.215 billion, a year-on-year increase of – 64.4%.
Among them, Q4 achieved an operating revenue of 10.605 billion yuan in 2021, a year-on-year increase of + 19.7% and a month on month increase of + 2.9%; The net profit attributable to the parent company was – 70 million yuan, a year-on-year increase of – 108.8% and a month on month increase of – 146.4%. The weighted average roe was – 0.5%, down 6.0pct year-on-year and 1.5pct month on month. The gross profit margin of sales was 13.6%, down 2.4pct year-on-year and flat month on month; The net profit margin on sales was – 0.8%, down 9.3pct year-on-year and 0.8pct month on month. The net cash flow from operating activities was 740 million yuan, a year-on-year increase of + 327.3%.
In 2022, Q1 achieved an operating revenue of 9.457 billion yuan, a year-on-year increase of + 4.4% and a month on month increase of – 10.8%; The net profit attributable to the parent company was 421 million yuan, a year-on-year increase of – 44.9%, turning losses into profits month on month. The weighted average roe was 2.8%, down 2.3pct year-on-year and up 3.2pct month on month. The gross profit margin of sales was 16.9%, with a year-on-year decrease of 3.6pct and a month on month increase of 3.3pct; The net profit margin of sales was 4.5%, a year-on-year decrease of 4.0pct and a month on month increase of 5.3pct. The net cash flow from operating activities was – 440 million yuan, a year-on-year decrease of 220 million yuan.
Comments:
The medical sector returned to normal, with more price increases of raw materials superimposed, and the profitability decreased in 2021
In 2021, the company realized an operating revenue of 40.199 billion yuan, a year-on-year increase of + 14.7%; The net profit attributable to the parent company was 1.661 billion yuan, a year-on-year increase of – 63.8%. In terms of expense rate, the company’s sales / management / financial expense rate in 2021 was 1.4% / 7.0% / 1.9% respectively, with a year-on-year increase of – 0.4 / – 0.3 / + 0.3pct respectively. The company’s annual operating income maintained a stable growth, with little change in expense rate, but the net profit attributable to the parent company decreased significantly, mainly due to the rapid rise in the price of raw materials, the small year-on-year increase in the price of main products, the narrowing of price difference and the sharp decline in gross profit margin. In 2021, the average purchase price of main raw materials (polyolefin resin, polystyrene resin and engineering resin) of the company’s modified plastic products was 1121981 yuan / ton, an increase of 20% year-on-year; The average purchase price of main raw materials (butanediol, purified terephthalic acid, purified adipic acid and sebaceous diamine) of new material products was 1361760 yuan / ton, an increase of 92% year-on-year; The average purchase price of main raw materials of green petrochemical products (low-temperature propane and mixed C4) was 428652 yuan / ton, up 41% year-on-year.
In terms of product segments, in 2021, the company’s revenue of modified plastic products was 25.328 billion yuan, a year-on-year increase of + 24.11%, and the gross profit margin was 19.72%, a year-on-year decrease of 6.45 PCT; The sales volume was 1745300 tons, a year-on-year increase of + 12.85%; The average selling price was 1451212 yuan / ton, a year-on-year increase of 9.98%. The revenue of new material products was 2.654 billion yuan, a year-on-year increase of + 51.14%, and the gross profit margin was 33.90%, a year-on-year decrease of 5.76 PCT; The sales volume was 101900 tons, a year-on-year increase of + 29.31%; The average selling price was 2604514 yuan / ton, up 16.88% year-on-year. The revenue of green petrochemical products was 4.014 billion yuan, a year-on-year increase of – 35.04%; The gross profit margin was 7.40%, a year-on-year decrease of 7.21pct; The sales volume was 621100 tons, a year-on-year increase of – 16.29%; The average selling price was 646273 yuan / ton, a year-on-year increase of 28.86%. The revenue of medical and health sector was 1.527 billion yuan, a year-on-year increase of – 43.65%; The gross profit margin was 15.29%, a year-on-year decrease of 60.77pct.
Q4 achieved an operating revenue of 10.605 billion yuan in 2021, a year-on-year increase of + 19.7% and a month on month increase of + 2.9%; The net profit attributable to the parent company was – 70 million yuan, a year-on-year increase of – 108.8% and a month on month increase of – 146.4%. The weighted average roe was – 0.5%, down 6.0pct year-on-year and 1.5pct month on month. Mainly due to the increase in the provision for impairment of long-term equity investment of jin’ao factoring, the amount of asset impairment accrued in 2021q4 alone reached 430 million yuan.
In 2022q1, the price increase of raw materials slowed down, and the net profit attributable to the parent company turned from loss to profit month on month
In 2022, Q1 achieved an operating revenue of 9.457 billion yuan, a year-on-year increase of + 4.4% and a month on month increase of – 10.8%; The net profit attributable to the parent company was 421 million yuan, a year-on-year increase of – 44.9%, turning losses into profits month on month. The gross profit margin of sales was 16.9%, with a year-on-year decrease of 3.6pct and a month on month increase of 3.3pct; The net profit margin of sales was 4.5%, a year-on-year decrease of 4.0pct and a month on month increase of 5.3pct. The expense rate is relatively stable during Q1 in 2022, and the profitability is improved month on month, mainly due to the reduction or even decline of the month on month increase of raw material prices. In terms of specific products, the modified plastics sector achieved a revenue of 5.969 billion yuan, a sales volume of 404500 tons, and an average sales price of 1475768 yuan / ton, a year-on-year increase of + 9.08% and a month on month increase of + 0.01%; The average purchase price of upstream raw materials was 1073551 yuan / ton, up + 1.59% year-on-year and – 5.00% month on month. The new materials sector achieved a revenue of 873 million yuan, a sales volume of 33600 tons and a sales volume of 2599177 yuan / ton, a year-on-year increase of + 16.08% and a month on month decrease of – 9.92%; The average purchase price of upstream raw materials was 1886556 yuan / ton, a year-on-year increase of + 93.60% and a month on month increase of + 3.56%. The green petrochemical sector achieved a revenue of 553 million yuan, a sales volume of 75800 tons, and an average sales price of 729643 yuan / ton, a year-on-year increase of + 17.71% and a month on month increase of + 8.59%; The average purchase price of upstream raw materials was – 8.56% month on month; The price of upstream raw materials was 569805, with a year-on-year increase of + 40.38% and a month on month increase of + 17.04%.
The company has sufficient reserves of projects under construction, waiting for the integrated layout to blossom and bear fruit
The company is vigorously promoting the integrated layout, with sufficient reserves of projects under construction, and many projects are progressing smoothly. In the first stage of the company’s “1.2 million T / a polypropylene thermoplastic elastomer (PTPE) and modified new material integration project”, 60% model review was conducted for the design of the main device. The civil construction of the main device, public and auxiliary facilities and low-temperature tank was carried out in an all-round way, and the jacking construction of low-temperature propane tank was completed in August 2021. By the end of 2021, the accumulated investment was about 1.241 billion yuan, accounting for 18.20% of the total estimated investment. It is expected to be put into operation in 2023. The ” Shanghai Pudong Development Bank Co.Ltd(600000) T / a ABS and its supporting devices project of Liaoning Bora new materials Co., Ltd.” has been started on June 15, 2020, with a planned construction period of 2 years. The construction contents of the project include Shanghai Pudong Development Bank Co.Ltd(600000) T / a ABS unit, Shanghai Pudong Development Bank Co.Ltd(600000) T / a propane dehydrogenation (PDH) unit, 260000 T / a acrylonitrile (an) unit, 100000 t / a methyl methacrylate (MMA) unit and supporting projects.
By the end of 2021, Shanghai Pudong Development Bank Co.Ltd(600000) T / a ABS and supporting engineering projects have invested 7.167 billion yuan, accounting for 76% of the total estimated investment. It is expected to be put into operation in the third quarter of 2022. In the future, with the completion and operation of the two major projects, the self-sufficiency rate of raw materials of the company will be greatly improved. Under the integration, the profitability of the company is expected to be fully released.
In addition, Guangdong Jinfa has an annual output of 40 billion high-performance medical and health protection gloves. The production and construction project has a total of 96 production lines, and each production line is designed to produce 8 Ping An Bank Co.Ltd(000001) .2 million gloves per day. By the end of 2021, the company has completed the construction of 40 nitrile glove production lines, and each production line is in good operation. The overall project is expected to be completed in the third quarter of 2022.
Release the “carbon” strategy and action plan, continue to scale up the renewable plastic business and promote the sustainable development of the company. On October 16, 2021, at the “carbon” Summit Forum of China’s plastic industry, the company officially released the “carbon” strategy and action plan and launched the action of “green, low-carbon and recycling”. The company will work with stakeholders to establish a “carbon” management system, verify the enterprise’s carbon footprint according to relevant standards, continuously reduce emissions, and regularly disclose the progress of carbon neutralization. The company aims to reduce greenhouse gas emissions per unit product by 30% year-on-year in 2030 and achieve enterprise carbon neutrality in 2060. The company will continue to build a plastic recycling system, promote and continuously improve it. Achieve the goal of producing 1 million tons of green plastics, recycling waste plastics and producing recycled plastics by 2030. At present, the company has an annual production capacity of 370000 tons of recycled plastics, with a capacity under construction of 109000 tons. It is expected to put into operation 50000 tons in 2022 and 59000 tons in 2023. In the future, as China’s dual carbon target approaches, the company’s renewable plastics business is expected to usher in rapid development and increase its contribution to the company’s performance. In addition, in the context of double carbon, the development of renewable plastics business will also lay a good foundation for the sustainable development of the company.
In view of the company’s historical profitability and future development plan, we adjusted the company’s profit forecast. It is estimated that the company’s net profit attributable to the parent company in 2022, 2023 and 2024 will be 1.845 billion yuan, 2.338 billion yuan and 2.796 billion yuan respectively, EPS will be 0.72, 0.91 and 1.09 yuan / share, corresponding to 11, 9 and 7 times of PE, maintaining the “buy” rating.
Risk tips: macroeconomic risks; Raw material price and supply risk; Project construction risk; Safety production risk; exchange-rate risks; Product development and application risks.
