\u3000\u3 Bohai Water Industry Co.Ltd(000605) 006 Shandong Fiberglass Group Co.Ltd(605006) )
The company released the first quarterly report of 2022 on April 28, with Q1 revenue of 830 million yuan, a year-on-year increase of 13.0% and a month on month increase of 20.5%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 19.4% and a month on month increase of 89.6%.
Key points supporting rating
In the first quarter, the revenue and profit increased year-on-year and month on month, and the cash flow decreased significantly affected by the epidemic: the company's Q1 revenue was 830 million yuan, a year-on-year increase of 13.0% and a month on month increase of 20.5%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 19.4% and a month on month increase of 89.6%. In Q1, the cash from selling goods and providing labor services was 400 million yuan, and the net cash flow from operating activities was 100 million yuan, with a month on month decrease of 36.8% and 62.6% respectively. The main reason for the large decrease was the decrease in sales receipts affected by the epidemic in the reporting period.
The high prosperity of glass fiber continues and the profitability of the company continues to improve: according to the performance forecast, there is strong demand in 22q1 Chinese and international glass fiber yarn market, and Yishui line 3 reaches production ahead of schedule, and the volume and price of the company's glass fiber business rise simultaneously. The company's sales / management / Finance / R & D expense ratio decreased by 0.4/1.1/1.0/0.2pct month on month, with a year-on-year change of -0.1/1.2 / - 0.3/0.9pct. The gross profit margin and net profit margin of sales were 36.5% and 21.9% respectively, with a year-on-year increase of 1.6/1.2pct and a month on month increase of 3.4/8.0pct respectively.
The company's per capita production efficiency has been further improved, and the company's per capita production line has been continuously upgraded from 100000 tons of cold water in 2021 to 100000 tons of cold water in 2027. The company's per capita production efficiency has been further reduced. At present, the approval procedures for energy consumption indicators in the early stage of Tianju energy-saving 170000 tons / year ecer digital glass fiber production line project have been completed.
The demand for glass fiber continues to be strong, with great pressure on the supply side: on the demand side, the export of glass fiber continues to boom, and the market demand for wind power and new energy vehicles in China is strong. The comprehensive strengthening of infrastructure this year will also drive the demand for glass fiber in the field of construction and pipeline. On the supply side, the production capacity of new ignition will reach the production capacity in the second half of 21. According to Zhuo Chuang information, about 400000 tons of production capacity will still be put into operation in the first half of 22. The continuous increase of supply will bring some pressure to the balance of supply and demand of the industry. In terms of price, in late April, the average price of mainstream products of alkali free glass fiber yarn was basically flat year-on-year and month on month. We expect roving prices to remain stable.
Valuation
The company's performance is in line with our expectations, and we maintain the original profit forecast. It is estimated that from 2022 to 2024, the company's revenue will be RMB 2.97 billion, RMB 3.28 billion and RMB 3.59 billion respectively; The net profit attributable to the parent company was RMB 700 million, RMB 820 million and RMB 910 million respectively; EPS was 1.41, 1.65 and 1.82 yuan, maintaining the company's overweight rating.
Main risks of rating
The demand for glass fiber is lower than expected, the epidemic situation in China is repeated, and the fuel price remains high.
