\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 966 Shandong Linglong Tyre Co.Ltd(601966) )
Event: on April 28, 2022, the company announced that the annual report of 2021 and the first quarterly report of 2022: the company realized an operating revenue of 18.579 billion yuan in 2021, a year-on-year increase of + 1.07%; The net profit attributable to the parent company was 789 million yuan, a year-on-year increase of – 64.48%; The net profit attributable to the parent company after non deduction was 642 million yuan, a year-on-year increase of – 69.20%; The net cash flow from operating activities was 490 million yuan, a year-on-year increase of – 88.58%.
In the Q4 single quarter of 2021, the company achieved an operating revenue of 4.264 billion yuan, a year-on-year increase of – 16.98% and a month on month increase of – 0.29%; The net profit attributable to the parent company was – 140 million yuan, a year-on-year increase of – 122.51% and a month on month increase of – 190.45%; The net cash flow from operating activities was 768 million yuan, a year-on-year increase of – 58.34%, an increase of 971 million yuan month on month.
In the first quarter of 2022, the company achieved an operating revenue of 4.351 billion yuan, a year-on-year increase of – 12.74% and a month on month increase of + 2.40%; The net profit attributable to the parent company was -92 million yuan, with a year-on-year decrease of – 118.57%, and a month on month decrease of 48 million yuan; The net cash flow from operating activities was 165 million yuan, an increase of 254 million yuan year-on-year, or – 78.48% month on month.
Comments:
In 2021, the company realized an operating revenue of 18.579 billion yuan, a year-on-year increase of + 1.07%; The net profit attributable to the parent company was 789 million yuan, a year-on-year increase of – 64.48%; The net profit attributable to the parent company was dragged down by the rise in the prices of raw materials and sea freight
1) in 2021, affected by the continuous rise of upstream prices such as crude oil, steel and coal, the prices of natural rubber, synthetic rubber, carbon black and cord fabric, the main raw materials of tires, remained in a high fluctuation state for a long time. The average price of natural rubber in 2021 increased by 25.32% year-on-year, and the average price of carbon black in 2021 increased by 52.30% year-on-year. The cost of tire enterprises is under pressure, and the gross profit margin shows a decline in varying degrees. 2) In 2021, due to the impact of the epidemic, the number of foreign port workers decreased, the unloading capacity was insufficient, and the port processing capacity decreased, resulting in port congestion, increased ship transportation time, and containers could not be transported back in time. In addition, the trend of oil price rose sharply, which greatly increased the price pressure of shipping from the cost side, and the orders of tire enterprises were strong, but the export was blocked. 3) The United States implements anti-dumping against Southeast Asia. The anti-dumping tax rate against Linglong Thai factory is 21.09%, which affects the profitability of Thai factories to a certain extent. 4) The decline in gross profit in the Chinese market dragged down the overall net profit attributable to the parent company. In 2021, the company’s revenue in the Chinese market was 9.825 billion yuan, accounting for 53.76% of the tire revenue, and the gross profit margin was 12.8%. The gross profit margin of tire products in the Chinese market was significantly lower than that in the foreign market. Under the background that the rising cost of raw materials squeezed the profit space, some supporting products may suffer losses, which will have a greater impact on the business in the Chinese market.
In 2022q1, the net profit attributable to the parent company was -92 million yuan, a year-on-year decrease of – 118.57%, and a month on month decrease of 48 million yuan. It is speculated that the epidemic in many places in China will have an adverse impact on the operation and demand of factories
According to Bloomberg, the freight rate from China to East America in 2022q1 was US $17413 / feu, down 8.80% month on month. According to the disclosure of the company, the comprehensive procurement cost of the five main raw materials of natural rubber, synthetic rubber, carbon black, steel cord and cord fabric in Q1 increased by 0.36% month on month, which continued to suppress the profit of semi steel tire, especially the pressure on the supporting end of semi steel tire. At the same time, the sales volume of medium and heavy trucks in China decreased by 55.02% year-on-year in 2022q1. The market structure of all steel tire will be properly adjusted to light trucks, which may further reduce the structural gross profit margin. According to wind, the sales volume of commercial vehicles in China in 2022q1 was 963600, with a year-on-year increase of – 31.59% and a month on month increase of – 5.52%; Among them, the sales volume of heavy trucks was 52000, with a year-on-year increase of – 37.90% and a month on month increase of + 44.20%; In 2022q1, the sales volume of passenger cars in China was 5.5381 million, with a year-on-year increase of + 9.13% and a month on month increase of – 16.35%. Since March this year, outbreaks have occurred in many places in China. According to wind, as of April 27, 2022, 24330 people have been diagnosed in Changchun City, Jilin Province since March. The static management of all staff has been implemented since March 21, and the seal has been gradually released on April 9; A total of 1011 people have been diagnosed in Qingdao, Shandong Province since March; A total of 44 people have been diagnosed in Yantai City, Shandong Province since March. Under the epidemic situation, Shandong Linglong Tyre Co.Ltd(601966) some factories may be affected to some extent, and the cost will also be affected.
