\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 720 Gansu Qilianshan Cement Group Co.Ltd(600720) )
The company released the first quarterly report of 2022 on April 25. In the first quarter, the company's revenue was 930 million yuan, an increase of 19.4% at the same time; The net profit attributable to the parent company was 2.8 million yuan, with a decrease of 94.0%. Rising coal prices squeeze profit levels.
Key points supporting rating
In the first quarter, the company's revenue increased and net profit decreased at the same time: the company's revenue in a single quarter was 930 million yuan, an increase of 19.4% at the same time; The net profit attributable to the parent company was 2.8 million yuan, with a decrease of 94.0%. The increase in costs caused by the rise in coal prices may be the main reason for the pressure on profits. The net cash flow from operating activities was 510 million yuan, an increase of 110.6% at the same time, mainly due to the increase in the proportion of payment for goods through bills during the reporting period, which reduced the cash paid for purchasing goods and receiving labor services.
Pressure on profits and decrease in expenses: during the reporting period, the company's gross profit margin was 16.4%, with a decrease of 9.0pct and a decrease of 4.1pct month on month; The net interest rate was 0.2%, with a decrease of 6.1pct and a month on month increase of 0.8pct. The four expense rates were 13.1%, with a decrease of 3.4pct at the same time and a decrease of 2.3pct month on month. Among them, the sales expense rate changed greatly, with a year-on-year decrease of 3.4pct and a month on month decrease of 1.6pct.
The company announced major reorganization matters: on April 25, the company signed the agreement of intent on major asset reorganization matters with China Communications Construction Company Limited(601800) , the related party urban and rural China, and agreed to replace all assets and liabilities of Gansu Qilianshan Cement Group Co.Ltd(600720) held by China Communications Construction Company Limited(601800) with the public Planning Institute, the first public court, the second public court, and the 100% equity of Southwest Institute, Northeast Institute and Energy Institute held by urban and rural China. The insufficient part of Gansu Qilianshan Cement Group Co.Ltd(600720) will be transferred to China Communications Construction Company Limited(601800) China urban and rural purchase. As the last piece of jigsaw puzzle for CNBM to integrate northwest cement, Gansu Qilianshan Cement Group Co.Ltd(600720) following Ningxia Building Materials Group Co.Ltd(600449) announced the reorganization. If the transaction is concluded, the company's main business
Business will change. Valuation
The company's performance is lower than expected, so the restructuring will not be considered temporarily. Considering the pressure of regional supply and demand, we partially lowered our profit forecast. It is estimated that from 2022 to 2024, the company's revenue will be 8.27 billion yuan, 8.73 billion yuan and 9 billion yuan respectively; The net profit attributable to the parent company was 1.25 billion yuan, 1.33 billion yuan and 1.44 billion yuan respectively; EPS was 1.61, 1.72 and 1.86 yuan, maintaining the company's buy rating.
Main risks of rating
The growth rate of infrastructure and real estate investment was lower than expected, the impact of Ningxia and Shaanxi cement and the rise of coal prices.
