\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event: on the evening of April 28, the company released the first quarterly report of 2022 and the employee stock ownership plan of 2022 (Draft)
Short term performance pressure: rising raw materials and rising shipping costs; It is expected that it will gradually rise in the next few quarters
The company achieved a total revenue of 20.3 billion yuan in 2022q1, a year-on-year decrease of 39%; The net profit attributable to the parent company was 1.6 billion yuan, a year-on-year decrease of 71%. The main reasons for the decline are as follows: 1) the price of raw materials and shipping costs have risen sharply; 2) Market demand slows down and income declines; 3) 2021q1 has strong market demand and a high base. With the promotion of “steady growth” in 2022, infrastructure real estate is expected to improve marginally. We expect that the quarterly performance of the company in 2022 is expected to improve gradually, and the performance will gradually turn upward.
The gross profit margin of sales decreased by about 7.7pct year-on-year and increased by 3.3pct month on month; The medium and long-term gross profit margin is expected to be repaired
The gross profit margin of 2022q1 company’s sales was 22%, down 7.7pct year-on-year. Mainly affected by factors such as the price of raw materials and the rise of international freight, the gross profit margin increased by about 3.3pct month on month compared with 2021q4. With the decline of commodity prices and the repair of industry prosperity, the opening of scale effect is expected to make the gross profit margin repair step by step. The net profit margin of 2022q1 sales was 8%, down 8.8pct year-on-year, mainly due to the increase of the company’s management and R & D expense rate. The sales / management / R & D / financial expenses of 2022q1 company accounted for 6.7% / 3.3% / 7.0% / – 0.4% of the total revenue respectively, with a year-on-year increase of 0.7/1.3/2.8/0.1 percentage points respectively.
The 2022 employee stock ownership plan (Draft) was released, with a price of 23.65 higher than the market price, demonstrating the company’s confidence
The company issued the employee stock ownership plan (Draft) for 2022. The participants include directors, supervisors, senior executives, middle managers, personnel in key positions and core business (technical) personnel, with a total of no more than 6996 people. The establishment scale of the employee stock ownership plan does not exceed 485 million yuan. The shares in the plan come from the repurchased shares of the company, with a total of no more than 204988 million shares, no more than 1% of the current total share capital of the company. The purchase price of repurchased shares in the plan is 23.65 yuan / share (the average repurchase price of the company is 12.70 yuan / share). We believe that the issuance of the ESOP will fully mobilize the enthusiasm and creativity of the company’s management and employees, and also demonstrate the company’s determination and confidence in high performance growth in the future.
Driven by steady growth, the marginal is expected to improve; The continuous promotion of “two innovations and three modernizations” will lead the company to rise against the trend
The demand for construction machinery is sluggish, and the cumulative total sales volume of excavator / truck crane / crawler crane from January to March 2022 decreased by 39% / 55% / 30% year-on-year respectively. Superimposed on the impact of the epidemic, the industry boom showed a downward trend as a whole. The capital construction increased steadily. In March 2022, the capital construction investment increased by 11.8% year-on-year, with a significant increase of 3.2pct. The rhythm of 2022q1 special bonds accelerated, and the issuance of Q1 accounted for about 36%, an increase of 5 / 7pct compared with the same period in 2020 / 2019. With the late demand caused by the superposition of infrastructure efforts and the epidemic in the second half of the year, the industry demand is expected to gradually improve. In 2021, the company continued to promote the internationalization, electrification and intelligence strategy and achieved positive results. Under the promotion of the strategy in 2022, it is expected to make efforts and lead the company against the trend.
Profit forecast
It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 123 / 144 / 16.6 billion respectively, with a year-on-year increase of 2% / 17% / 16%. Corresponding to P / E11 / 9 / 8x, the company is the leader in the field of excavators. It is in a leading position in the field of intelligent, motorized and international construction machinery. It is optimistic about the strong alpha attribute of the company in the medium and long term and maintains the “buy” rating.
Risk tips: 1) the epidemic affects the start-up, and the downstream recovery is less than expected; 2) Price fluctuation of raw materials
