\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 801 Huaxin Cement Co.Ltd(600801) )
The company realized a net profit attributable to the parent company of 670 million yuan in 22q1, a year-on-year decrease of 8.5%
The company released its first quarterly report for 22 years, with a revenue of 6.53 billion yuan, a year-on-year increase of 5.5%, and a net profit attributable to the parent company of 670 million yuan, a year-on-year decrease of 8.5%, deducting a net profit not attributable to the parent company of 650 million yuan, a year-on-year decrease of 10.6%. Affected by factors such as poor demand for Q1 cement and rising coal prices, the company's profit fell year-on-year, but the growth of aggregate business formed a certain support for the overall profit, and its performance was better than that of its peers, The advantages of integrated transformation and development are obvious.
The quantity of cement decreases and the price increases, and the aggregate may maintain rapid growth
The company's revenue in the first quarter increased slightly year-on-year, which is expected to be mainly driven by the growth of cement price and aggregate business income. We calculate that the cement price in the two lakes and southwest regions of the company increased by 11 / 69 yuan year-on-year respectively, but the cement price in the two lakes and southwest regions has declined since April. As of April 24, the cement price in the two lakes and southwest regions was 480 / 441 yuan respectively, with - 30 / + 46 yuan year-on-year respectively. In terms of sales volume, From January to March, the national cement output fell by 12.1% year-on-year. We expect the decline of the company's sales volume to be slightly higher than that of the whole country. At present, affected by the epidemic situation, shortage of funds and other factors, the demand is still relatively weak. The cement shipment rates of the two lakes and southwest regions are 8 / 15pct lower than that of the same period last year. However, due to the staggered peak production in the second quarter in the southwest region, the supply side is controlled and the price is temporarily stable. At the end of the 21st century, the company's overseas cement grinding capacity reached 10.83 million tons / year, and the overseas clinker capacity ranked second in China. At the beginning of the 22nd year, the company newly ignited the 2800 tons / day cement clinker production line in narayani, Nepal, and the overseas revenue is expected to become a new growth point in the future. In terms of aggregate, by the end of the 21st century, the aggregate production capacity of the company had been expanded to 154 million tons. We expect that the aggregate business income in the first quarter may increase rapidly year-on-year. At present, there are 10 aggregate projects under construction, and the annual aggregate production capacity will reach 270 million tons after completion. The planned aggregate sales volume in the 22nd year is 78.22 million tons, an increase of 124% compared with the actual sales volume in the 21st year. The aggregate business is expected to drive the improvement of the overall income and profitability.
Gross profit margin fell month on month, and the capital structure was further improved
The overall gross profit margin of 22q1 company was 26.3%, down 6.4pct year-on-year and 2.4pct month on month. It is expected that the cost increase of cement ton in Q1 is higher than the price increase due to the rising coal price. The cost rate during the period is 11.6% and - 2.9pct year-on-year. Among them, the sales / management / financial cost rate is - 2.4 / - 0.8 / + 0.3pct year-on-year respectively, and finally the net profit rate is 10.7%, down 2.3pct year-on-year. The asset liability ratio at the end of the period was 43.2%, a decrease of 0.9pct compared with the end of the year 21, and the capital structure was further optimized.
Optimistic about the growth of the company's aggregate, concrete and overseas cement business, and maintain the "buy" rating
We continue to be optimistic about the medium and long-term growth of the company's aggregate, concrete and overseas cement business. The company has established a performance doubling plan to double its revenue in 2025 compared with 19 years, laying the foundation for long-term development. Considering that the cement demand may decline in the future and the rise of coal price, the net profit attributable to the parent company in 22-24 years is predicted to be 6 / 67 / 7.36 billion yuan, the company's target PE of 8 times in 22 years is maintained, the corresponding target price is 22.88 yuan, and the "buy" rating is maintained.
Risk tips: cement demand is less than expected, price rise in peak season is less than expected, coal cost rise, etc.
