\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 176 China Jushi Co.Ltd(600176) )
Conclusions and suggestions:
The company released the first quarterly report of 2022, with an operating revenue of 5.13 billion yuan, yoy + 28.4%, a net profit of 1.84 billion yuan, yoy + 72.7% (net profit of 1.44 billion yuan after deduction, yoy + 36.1%), equivalent to EPS of 0.46 yuan, and the company’s performance exceeded expectations.
At present, the epidemic situation in China may have a negative impact on the demand for glass fiber, but the overall demand is still supported by the growth of demand in Europe and the United States. With the rapid development of global new energy vehicles, wind power and other industries, the demand for glass fiber is expected to increase steadily in the long term. The company is a leading enterprise in the industry, with a global market share of 20%. At present, the capacity expansion speed is faster than that of foreign glass fiber enterprises, and the market share is expected to be further improved. Considering the impact of the epidemic and the release of new production capacity, we expect the net profit of the company in 2022 and 2023 to reach 6.687 billion and 7.203 billion respectively, yoy + 10.9% and + 7.7% respectively, EPS 1.67 and 1.8 yuan respectively, corresponding to the current PE and 8.2 times of a share price, and Pb 2.4 times in 2022. It is recommended to “buy” A shares.
Overseas demand increased, and the company’s first quarter performance exceeded expectations: the company released the first quarter report of 2022, realizing an operating revenue of 5.13 billion yuan, yoy + 28.4%, a net profit of 1.84 billion yuan, yoy + 72.7% (net profit of 1.44 billion yuan after deduction, yoy + 36.1%), equivalent to EPS of 0.46 yuan, and the company’s performance exceeded expectations.
In the first quarter of 2022, the company’s glass fiber business revenue increased rapidly, mainly because the proportion of export products with better prices increased when the sales volume was basically flat. At present, overseas demand is gradually recovering, there is a supply gap, the company’s capacity advantage appears, and the market share is expected to increase. The company’s net profit grew faster than its revenue, mainly because 1) the company recorded a gross profit margin of 44.57% in the first quarter, an increase of 1.05% year-on-year. 2) The company has strong cost control ability, and the sales expense rate, management expense rate and financial expense rate decreased by 0.14, 1.19 and 0.78 percentage points respectively. 3) The income from the disposal of fixed assets was 413 million yuan, an increase of 380 million yuan year-on-year. The company’s debt ratio in the first quarter was 45.37%, down 3.16 percentage points year-on-year.
The company has steadily increased its production capacity: in the orderly expansion of the company’s production capacity, the existing production capacity exceeds 2.4 million tons. The projects expected to be put into operation this year include Tongxiang 100000 tons of electronic yarn and 300 million meters of electronic cloth project, Chengdu base 150000 tons of glass fiber chopped precursor production line construction project, and Egypt 120000 tons of glass fiber production line project. In addition to the above projects, the company’s current projects under construction include the construction project of glass fiber production line with an annual output of 400000 tons in Jiujiang base. The project is constructed in two phases and is expected to be put into operation in 2023 and 2024.
The company released the raw material production line and cold repair investment plan: the company announced that it would invest in the construction of two glass fiber grade calcium oxide production lines with an annual output of 100000 tons and one calcium carbonate powder production line with an annual output of 75000 tons in Jiujiang base, with a total investment of 110 million. The project aims to meet the increased demand for raw materials after the expansion of Jiujiang base. In addition, the company announced that it would carry out cold repair and technical transformation on a production line with an annual output of 30000 tons of electronic yarn (supporting 100 million meters of electronic cloth) and a production line with an annual output of 120000 tons of glass fiber in Tongxiang. After the transformation is completed, the production capacity will be increased to 50000 tons (supporting the production of 160 million meters of electronic cloth) and 200000 tons respectively. The investment amount of these two projects is 630 million yuan and 680 million yuan respectively. After the cold repair, the production efficiency of the production line will be improved and the cost will be further reduced.
Profit expectation: we predict that the net profit of the company in 2022 and 2023 will reach 6.687 billion and 7.203 billion respectively, yoy will be + 10.9% and + 7.7% respectively, EPS will be 1.67 yuan and 1.8 yuan respectively, corresponding to the current PE of a share price of 8.8 times and 8.2 times respectively, and Pb will be 2.4 times in 2022. It is recommended to “buy” A shares.
