\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 720 Gansu Qilianshan Cement Group Co.Ltd(600720) )
Core view
Revenue grew steadily, and the upward coal price dragged down performance. In 2022q1, the company achieved a revenue of 929 million yuan, a year-on-year increase of + 19.37%, and the net profit attributable to the parent company was 2.8038 million yuan, a year-on-year increase of – 94.01%. The net profit not attributable to the parent company was 6.6673 million yuan, a year-on-year increase of – 82.35%, and EPS was 0.0036 yuan / share, which was basically in line with the previous performance forecast. Affected by covid-19 epidemic, the company’s Q1 cement sales decreased year-on-year, but benefited from the year-on-year rise of regional cement prices, and the revenue achieved steady growth. However, due to the rise of raw coal prices, the performance decreased significantly year-on-year.
Profitability fell under pressure and cash flow increased significantly year-on-year. 2022q1 company’s comprehensive gross profit margin was 16.37%, with a year-on-year ratio of -8.98pp and a month on month ratio of -4.06pp. It was mainly affected by the rise in the purchase price of raw coal. The net profit margin was 0.15%, with a year-on-year ratio of -6.13pp and a month on month ratio of + 0.83pp. The decline in net profit margin was less than the gross profit margin, mainly due to the continuous good control of expenses; The expense rate during the period was 13.10%, with a year-on-year ratio of -3.41pp and a month-on-month ratio of -2.28pp, of which the sales / management / financial expense rate was 1.32% / 11.84% / – 0.05%, a year-on-year ratio of -0.14pp / – 3.37pp / + 0.10pp and a month-on-month ratio of -0.37pp / – 1.62pp / – 0.3pp. The decrease in management expenses or the less maintenance expenses of fixed assets due to the impact of the epidemic. The net cash flow from operating activities in 2022q1 was 508 million yuan, a year-on-year increase of + 110.56%. On the one hand, it benefited from the year-on-year increase in sales revenue. On the other hand, the cash outflow decreased due to the increase in the proportion of bill settlement of the company. The notes payable in 2022q1 was 570 million yuan, an increase of 189 million yuan over the same period last year, a year-on-year increase of + 49.6%.
Plan major asset restructuring, pay attention to the follow-up plan and promote the process. On April 25, the company announced that it had signed the agreement of intent on major asset restructuring with China Communications Construction Company Limited(601800) and China urban and rural holding group, and planned to carry out major asset restructuring, replacing all the assets and liabilities of the company with the 100% equity of China Communications Construction Company Limited(601800) the public Planning Institute, the first public hospital and the second public hospital, and the equivalent part of the 100% equity of Southwest Hospital, northeast hospital and Energy Institute held by China urban and rural holding group, Some companies with insufficient replacement will purchase from China Communications Construction Company Limited(601800) , urban and rural areas of China by issuing shares, and raise supporting funds at the same time. The transaction is still in the early stage of planning, the relevant parties to the transaction have not signed a formal transaction agreement, and the specific transaction scheme is still under discussion and demonstration.
Risk warning: the price of raw coal has risen sharply; The commencement of infrastructure projects is less than expected; Uncertain restructuring process
Investment suggestion: steady growth is expected to provide performance flexibility, the valuation has a safety margin and maintain “buy”. In view of the great uncertainty in the company’s asset restructuring plan, the analysis of future investment prospects is still based on the original business. The company is the leader of cement in Gansu Qinghai Tibet region, with the market share of Gansu / Qinghai reaching 45% / 23% respectively. It dominates the market of key projects such as highway, railway and airport. Under the background of steady growth, the regional infrastructure investment accelerates, or drives the recovery of regional demand. At the same time, the new aggregate production lines in Chengxian county and Pingliang have been put into operation, and the development of aggregate business is expected to contribute to new performance growth. It is estimated that the EPS of 22-24 years will be 1.38/1.49/1.58 yuan / share respectively, and the corresponding PE will be 7.7/7.2/6.8x, maintaining the “buy” rating.
