\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 406 Nari Technology Co.Ltd(600406) )
Event:
The company released its annual report for 2021, realizing an operating revenue of 42.41 billion yuan, a year-on-year increase of 10.15%, and a net profit attributable to the parent company of 5.642 billion yuan, a year-on-year increase of 16.3%. At the same time, the company released the report for the first quarter of 2022, realizing an operating revenue of 5.755 billion yuan, a year-on-year increase of 16.95%, and a net profit attributable to the parent company of 379.1 million yuan, a year-on-year increase of 88.37%. The performance is in line with expectations.
Comments:
The company's operation has developed steadily and its financial indicators have continued to improve
In 2021, the company's annual operation increased steadily, the gross profit margin increased by 0.08pct to 26.88% year-on-year, the proportion of three fees increased or decreased slightly, and the company's financial expenses decreased significantly. The performance of the asset liability side is also very stable, and the overall company achieved steady development in 2021. The performance of Q1 in 2022 was brilliant. Since the net profit of RMB 200 million in Q1 in 2021 was the highest in the first quarter of the calendar year, Q1 in 2022 continued to significantly refresh this record to RMB 379 million, mainly due to the improvement of gross profit margin and expenses. Q1 revenue growth is in line with expectations.
Orders on hand reached 51.5 billion yuan, and power infrastructure accelerated to support the high growth of the whole year
By the end of 2021, the company's orders on hand totaled 51.508 billion yuan, and by the end of 2020, the figure was 45.572 billion yuan, a year-on-year increase of 13.03%. Orders on hand at the end of 2021 increased by 21.4% compared with the annual revenue of 2021, both exceeding the company's revenue target of 10%. At the 11th meeting of the central financial and Economic Commission on April 6, it was proposed to "strengthen the construction of network infrastructure such as transportation, energy and water conservancy". We believe that the company, as a core participant in the construction of energy network, will fully benefit from the acceleration of power infrastructure in the second to fourth quarters of this year. It is expected that the company will accelerate the pace of order execution, contributing to the high growth of annual performance.
In the first year of IGBT industrialization, focus on energy transformation and give play to the backbone
IGBT business is one of the strategic emerging industries that the company focuses on cultivating. Among them, 1200V, 1700V and 3300vigbt products have been successfully demonstrated and applied. It is expected that they will be gradually mass produced this year, mainly used in flexible AC / DC transmission, new energy power generation and new energy vehicles, so as to increase the company's profits. The company has deeply participated in the research and development of key technologies of the new power system, carried out the research on key technologies such as the development of full business scenario solutions in the power market, carbon monitoring and management, active support of new energy power generation, flexible and controllable multi load, collaborative interaction of source network load and storage, accelerated the promotion of new businesses such as digital converter station, DC distribution network and intelligent terminal, and actively promoted the new generation of dispatching regulation cloud A number of new applications, such as a new generation of centralized control stations, have been implemented. The company's development momentum is full, and its performance is expected to grow steadily.
Profit forecast
Based on the good development prospects of the company, we maintain the original forecast, that is, from 2022 to 2024, the operating revenue will be 50.65/584.3/65.28 billion yuan respectively, and the net profit will be 6.788/83.65/98.54 billion yuan respectively, which corresponds to 24 / 19.5/16.5 times of the closing price PE on April 28, 2022. We maintain the "overweight" rating, and the target price will be 39.18 yuan, which corresponds to 22 times of PE in 2024.
Risk tips
1) power investment and construction slows down; 2) Technology research and development is not as expected; 3) Market competition intensifies.
