Jingjin equipment ( Jingjin Environmental Protection Co.Ltd(603279) )
Event: the company released the first quarterly report of 2022. In 2022q1, the revenue was 1.145 billion yuan, a year-on-year increase of + 30.49%; The net profit attributable to the parent company was 153 million yuan, a year-on-year increase of + 54.54%.
Comments:
In 2022q1, the company's performance exceeded expectations, and its net profit increased by more than 50% year-on-year
Under the background of stable macroeconomic growth and repeated regional epidemics, the performance of the company in 2022q1 has increased significantly, with revenue + 30.49% year-on-year and net profit attributable to the parent company + 54.54% year-on-year. The growth rate of net profit is higher than that of revenue. The main reasons are: ① the adjustment of product prices in 2021 promoted the gross profit margin in 2022q1 to + 1.38pct to 29.47% year-on-year; ② The management expense ratio in 2022q1 was -2.80pct year-on-year, driving the period expense ratio to -1.59pct year-on-year, which was mainly due to the amortization of equity incentive cost of 30.48 million yuan in the same period of last year, resulting in the high management expense in 2021q1.
The company has sufficient orders and strong performance growth momentum. In 2022q1, the company's contract liabilities reached 1.87 billion yuan, a year-on-year increase of + 26.85%, an increase of 11.15% over the beginning of the period.
Under the stress test of the epidemic situation, the business resilience was fully demonstrated, and the monthly revenue of 2022m3 increased by about 15% year-on-year
On March 10, there was a confirmed case of covid-19 pneumonia in Dezhou, Shandong, where the company is located, and the company officially entered the stage of epidemic stress assessment. The company previously announced that 2022m1-2 achieved a revenue of 709 million yuan, a year-on-year increase of about 42%. At the same time, based on the performance of 2022q1, the company achieved a revenue of 436 million yuan in a single month of 2022m3, a year-on-year increase of about + 15%. Under the epidemic stress test, the company can still achieve steady and rapid growth and show its business resilience.
Accelerate project construction and build a world leading brand of complete filtration equipment
In order to meet the future market growth and the company's own development needs, in 2022, the company will accelerate the construction progress of the "industrialization project of special high-performance filter materials for environmental protection", ensure that they are put into operation as soon as possible and expand the company's filter cloth production capacity. At the same time, the company plans to build "Jingjin high-end equipment Industrial Park" in Dezhou, continue to optimize production layout, expand production capacity, build a leading high-end equipment production base, and provide strong industrial support for the future development of the company. Strive to build Jingjin brand into a world-class brand of high-end filtration complete equipment with world-class influence and competitiveness by 2025.
Profit forecast and investment rating
As a leader in the filter press industry, the company continues to expand new energy and gravel high prosperity track, while strengthening product R & D and business development of supporting equipment, and moving towards the world's leading manufacturer of complete sets of filtration equipment. We expect the company to achieve a net profit of RMB 850, 1.09 and 1.34 billion from 2022 to 2024, with a year-on-year increase of + 31.6%, + 28.0% and + 22.6%, corresponding to 17.5, 13.7 and 11.1 times of PE, maintaining the "buy" rating.
Risk tips: the risks related to the epidemic, the risk that the industry development is lower than expected, the risk that the industry competition intensifies, the risk of technology substitution, the risk that the market share decreases, and the risk that the price of raw materials increases significantly.
