\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 339 China Petroleum Engineering Corporation(600339) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 79.832 billion yuan, a year-on-year increase of + 13%, and realized a net profit attributable to the parent company of 459 million yuan, a year-on-year increase of – 46%. Among them, in Q4 of 21, the company realized an operating revenue of 27.597 billion yuan, a year-on-year increase of + 7%, a month on month increase of + 41%, and a net profit attributable to the parent company of – 354 million yuan, a year-on-year increase of -. In 22 years, Q1 company realized an operating revenue of 17.476 billion yuan, with a year-on-year increase of + 31% and a month on month increase of – 37%, and realized a net profit attributable to the parent company of 156 million yuan, with a year-on-year increase of + 18%, turning losses into profits.
Comments:
The epidemic caused the decline of the company’s performance in 21 years, and the resumption of the project in 22 years supported the improvement of the company’s profit: in 2021, the company’s main business continued to grow. Among them, the revenue of oil and gas field surface engineering, pipeline and storage and transportation engineering, oil refining and chemical engineering, environmental engineering and project management and others reached RMB 32.9 billion, 20.4 billion, 20.4 billion and 5.6 billion respectively, with a year-on-year increase of + 14%, + 2%, + 17% and + 45% respectively. The gross profit margin of the company’s main business in 21 years was 6.81%, with a year-on-year decrease of 0.78 PCT, of which the gross profit margins of oil and gas field surface engineering, pipeline and storage and transportation engineering, oil refining and chemical engineering, environmental engineering and project management and other businesses were -2.84, + 0.21, + 1.96 and -4.14 PCT respectively year-on-year, mainly due to the sharp rise in bulk raw materials and international transportation fees caused by the overseas epidemic and the cancellation of China’s preferential social security policies, As a result, the profitability of the company has declined. In Q1 2022, many projects of the company resumed work and production, and the completion of some key projects increased, which led to the improvement of the company’s performance year-on-year. In Q1 22, the company achieved a revenue of 17.5 billion yuan, a year-on-year increase of + 31%. The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of + 18%.
The newly signed contract amount remained high in 21 years and continued to develop overseas business in 22 years: in 2021, the newly signed contract amount of the company remained high. In the whole year of 21 years, the newly signed contract amount of the company reached 92.45 billion yuan, a year-on-year increase of – 4%, including 8.63 billion yuan of contracts that have been won but not signed and 11.81 billion yuan of contracts that have been signed but not come into force. Among the newly signed contracts in 21 years, on the basis of consolidating the traditional market and the Chinese market, the company actively explored foreign markets. The newly signed contracts in China were 68.31 billion yuan, a year-on-year increase of – 9%, and those abroad were 24.14 billion yuan, a year-on-year increase of + 12%. In 2022, the company plans to reach 95 billion yuan of newly signed contracts in the whole year, of which the newly signed contract amount of Q1 company in 22 years is 20.5 billion yuan, a year-on-year increase of + 2%, including 8.1 billion yuan of contracts that have been won but not signed and 10.34 billion yuan of contracts that have been signed but not entered into force. In Q1 of the 22nd year, the company continued to actively explore foreign business. The newly signed contract amount in China was 17.44 billion yuan, a year-on-year increase of – 4%, and the newly signed contract amount abroad was 3.09 billion yuan, a year-on-year increase of + 50%. A large number of newly signed contracts provided effective support for the company’s sustainable operation and profitability in the future, and the company’s performance is expected to continue to improve.
Profit forecast, valuation and rating: affected by the overseas epidemic, the profitability of the company’s overseas projects is damaged and the gross profit of its main business is under pressure. Therefore, we lowered the company’s profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit for 20222024 will be 8.67 (down 26%) / 9.65 (down 28%) / 1.077 billion yuan, equivalent to EPS of 0.16/0.17/0.19 yuan respectively. The newly signed contract amount of the company has remained high, more than 22 projects have returned to work and production in an orderly manner, and the future performance is expected to improve. Therefore, we maintain the “overweight” rating.
Risk warning: international oil price fluctuation risk, overseas operation risk and newly signed orders are less than expected.
