\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 23 Shanxi Meijin Energy Co.Ltd(000723) )
Performance review
On April 28, the company released its 2021 annual report and 2022 quarterly report. In 2021, the company realized an operating revenue of 21.29 billion yuan, a year-on-year increase of + 66%, and a net profit attributable to the parent company of 2.57 billion yuan, a year-on-year increase of + 269%. In 2022, Q1 achieved an operating revenue of 6.18 billion yuan, a year-on-year increase of + 64%, and a net profit attributable to the parent company of 680 million yuan, a year-on-year increase of + 6%, in line with expectations.
Business analysis
The company's profit rose sharply in 2021 and maintained optimistic expectations throughout the year. During the reporting period, the price of coal and coke operated at a high level, and the production, sales and selling prices of the company's main products increased significantly compared with the same period of last year. At the same time, the cost of raw material coking coal operated at a high level. The company achieved a gross profit margin of 30.3% in 2021, a year-on-year increase of + 8.9%. Q1's net profit attributable to the parent company was 680 million yuan, a year-on-year increase of + 6%, mainly due to the continuous rise of coke price since the first quarter, which was beneficial to the sales of the company's main coke products. At present, the supply and demand of coke is still tight, and the coke price is at a high level. We expect that the supply and demand of coke this year is still tight, and we are optimistic about the company's annual performance.
The holding subsidiary ranks in the forefront of the industry, and its performance in 2022 is expected to benefit from the development of hydrogen energy industry. Feichi technology, a holding subsidiary of the company, achieved the output of 362 hydrogen fuel cell vehicles in 2021. According to the announcement of China Automobile Association, the output of FCV in 2021 was 1757, and Feichi technology accounted for 20.6%, ranking in the forefront of the industry. In March, the medium and long-term plan for hydrogen energy was released, which determined that "hydrogen" and "electricity" are equally important secondary energy. The planned amount of FCV is 50000 units. We believe that with the gradual implementation of the policy, the FCV sales volume is expected to increase significantly in 2022, and the monthly sales volume of FCV in the second half of the year may reach thousands. The company is committed to the layout of the whole industrial chain. It is expected that the company's performance in 2022 is expected to benefit from the development of hydrogen energy industry.
The main business of coking coal accelerates the transformation and forms a synergistic effect with the hydrogen energy sector. The company's industrial coal coke integration, with excellent coking business performance in 2021, and the existing coking capacity of 7.15 million tons / year. At present, it is transforming and upgrading from traditional energy to hydrogen energy. The company's by-product coke oven gas is rich in 55% hydrogen. It has one of the important ways of low-cost large-scale hydrogen production, which constitutes the synergy between the main coking industry and the hydrogen energy sector.
Profit adjustment and investment suggestions
We are optimistic about the development of the company's traditional business and hydrogen energy industry. As Meijin coal chemical coke oven, a wholly-owned subsidiary of the company, will be shut down and upgraded, and the profit forecast for 2022 will be lowered, the company's net profit attributable to the parent company from 2022 to 2024 is expected to be 26.1 (down 10.6%) / 38.3/3.98 billion yuan respectively, and the corresponding EPS is 0.61/0.90/0.93 yuan respectively, maintaining the "buy" rating.
Risk tips
Meijin group, the major shareholder, has a high equity pledge rate; The development of hydrogen energy industry is less than expected; There is a risk of falling coke prices
