\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 801 Huaxin Cement Co.Ltd(600801) )
Q1 revenue maintained growth and profit was slightly under pressure. In the first quarter of 2022, the company achieved a revenue of 6.531 billion yuan, with a year-on-year increase of 5.52%, which was mainly due to the significant year-on-year increase in cement prices in Central South and southwest China, offsetting some adverse effects on the cost side; Compared with other regions, the location of the company's cement plant is less affected by the epidemic. The net profit attributable to the parent company was 672 million yuan, a year-on-year decrease of 8.51%, mainly due to the rise in coal prices, resulting in a large year-on-year increase in fuel costs.
Profitability was under slight pressure, and cost control was further optimized. In 2022, Q1 achieved a gross profit margin of 26.3%, a year-on-year decrease of 6.4pct, and a net profit margin of 10.7%, a year-on-year decrease of 2.3pct. The ability of expense control was further improved. During the period, the expense rate reached 11.6%, with a year-on-year decrease of 2.8pct, of which the sales / management / Finance / R & D expense rate reached 5.2% / 5.4% / 0.9% / 0.1% respectively, with a year-on-year change of - 2.4pct / - 0.8pct / + 0.3pct / + 0.1pct. The increase of financial expense rate was mainly due to the increase of exchange loss, and the increase of R & D expense rate was mainly due to the increase of environmental protection, new material R & D projects and R & D investment. The company's cash flow was under pressure. The net cash flow from operating activities in the current period was -319 million yuan, a year-on-year decrease of 210.9%, mainly due to the sharp rise in fuel prices over the previous year and the increase in cash paid for goods. The company's asset liability ratio in the first quarter reached 43.2%, down 0.9pct month on month.
The business layout at home and abroad has been steadily promoted, and the transformation of environmental protection has been outstanding. In January this year, the company's 3000 ton cement clinker production line in Nepal was ignited. By the end of the first quarter, the company's overseas cement grinding capacity had reached about 11.83 million tons / year. At the same time, the company has completed the transfer from B to h and has been included in the list of H shares into Hong Kong stock connect, which will help the company open up overseas financing channels and further accelerate the process of international development. In terms of aggregate business, the company's Yangxin 100 million ton machine-made sand project has been steadily promoted. After all put into operation, the company's aggregate production capacity can reach 270 million tons / year. During the reporting period, Tibet and Chibi subsidiaries of the company won the title of "national green factory" issued by the Ministry of industry and information technology. At present, 11 units of the company have been selected into the national list one after another, highlighting the achievements of environmental protection transformation.
Risk warning: regional supply deteriorates; The cost increase is higher than expected; Overseas projects are not advancing as expected.
Investment suggestion: in the recovery of regional demand, maintain the "buy" rating. Under the guidance of the "doubling plan", the company plans to invest 12.2 billion yuan this year, a year-on-year increase of + 70% over last year. It will focus on strengthening the development of aggregate, overseas cement and integrated business, and promote the expansion of high-tech building materials industry and the transformation of traditional industry + digitization. Since March, the recovery progress of cement demand in Central China, the company's core region, has been relatively higher than that in other regions. Under the background of stable growth, regional demand is expected to be released in advance in the future, and the company's cement business is expected to maintain stable development. The non cement business will provide some flexibility for the company's performance under the rapid release of production capacity. It is estimated that the EPS in 22-24 years will be 2.97/3.33/3.70 yuan / share, and the corresponding PE will be 7.3/6.5/5.9x, maintaining the "buy" rating.
