\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 660 Fuyao Glass Industry Group Co.Ltd(600660) )
Key investment points
Key points of announcement: on April 28, 2022, Fuyao Glass Industry Group Co.Ltd(600660) held the 2021 annual general meeting of shareholders, and adopted resolutions such as the work report of the board of directors in 2021, the financial statement report in 2021 and the profit distribution plan in 2021; On April 29, 2022, the company announced that the company publicly issued the fifth phase of ultra short-term financing bonds in the national inter-bank market, with an issue price of 100 yuan and an issue interest rate of 2.19% (annual interest rate).
In 2022, the company issued the fifth phase of ultra short-term financing bonds to repay the loan, demonstrating the company’s confidence in development: on June 17, 2021, the company passed the proposal on the company’s issuance of ultra short-term financing bonds and agreed to apply to Bank Of China Limited(601988) inter market dealers association for registration and issue ultra short-term financing bonds with an amount not exceeding RMB 2 billion (including RMB 2 billion); On December 20, 2021, Bank Of China Limited(601988) inter market dealers association agreed to the application. On April 24, 2022, the company officially issued the fifth phase of ultra short-term financing bonds, referred to as “22 Fuyao scp005”, with ultra short-term financing bond code 012281631. The total issued amount is 400 million yuan, the term is 177 days, and the due payment date is October 20, 2022; The issuing price is 100 yuan (100 yuan face value), the issuing interest rate is 2.19% (annual interest rate), the lead underwriter is Industrial Bank Co.Ltd(601166) , the value date is April 26, 2022, and the cashing method is one-time repayment of principal and interest when due. The raised funds are mainly used to repay the loans of financial institutions. The issuance of ultra short-term financing bonds shows that the company continues to develop new business through financing, and demonstrates the confidence of the company in long-term sustainable development.
Benefit from the popularization of sky curtain + high value-added functions to improve the unit price of steam glass, increase the global share with cost advantage, and open up long-term growth space: 1) industry end: with the trend of automobile lightweight and intelligence, the penetration rate of sky curtain gradually increases, “beauty bonus” + weight reduction; The penetration rate of HUD front block, dimming, glass antenna, sound insulation and other high value-added functions continues to increase, and the value of automobile glass single vehicle is expected to double, with great potential. 2) Company side: with the advantages of production side and management side, Fuyao is expected to seize more shares of competitive enterprises in the overseas market with high-quality and cost-effective products, so as to further improve the global market share. 3) Based on Germany’s fysam, Fuyao entered the aluminum decorative strip industry, linked with China’s overseas markets, further expanded business boundaries, continuously integrated automotive glass products, enhanced large-scale advantages, and opened a new incremental space for the company’s long-term growth.
Profit forecast and investment rating: it is optimistic that Fuyao Glass Industry Group Co.Ltd(600660) will benefit from the industry dividend of the rising volume and price of single car accessories in the automotive glass industry, and it is expected to continue to grow in the single category gold track. Considering the continuous improvement of the company’s product structure, the continuous improvement of gross profit margin and the remarkable effect of cost control, we raised the profit forecast of Fuyao Glass Industry Group Co.Ltd(600660) 2022-2024 from RMB 3.2/4/5.1 billion to RMB 4.0/49/5.9 billion, with a year-on-year increase of + 26% / + 23% / + 21%, EPS of 1.52/1.87/2.25 and PE of 23 / 19 / 16 times. Maintain the “buy” rating of Fuyao Glass Industry Group Co.Ltd(600660) .
Risk warning: epidemic control is lower than expected; The price war of passenger cars exceeded expectations.
