\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 522 Jiangsu Zhongtian Technology Co.Ltd(600522) )
Event:
The company disclosed that the annual report of 2021 and the first quarterly report of 2022 had an operating revenue of 46.163 billion yuan in 21 years, a year-on-year increase of 9.70%; The net profit attributable to the parent company was 172 million yuan, a year-on-year decrease of 92.43%; 22q1 operating income was 9.290 billion yuan, a year-on-year decrease of 13.32%, and the net profit attributable to the parent company was 1.016 billion yuan, a year-on-year increase of 105.69%.
Our comments are as follows:
1. Gradually eliminate the impact of commodity trade on income growth, and focus on manufacturing to improve profitability
In the 21st year, the company achieved revenue of 46.16 billion (+ 9.7%). Specifically, the revenue of optical communication was 7.48 billion (+ 23.05%), the revenue of power grid was 11.16 billion (+ 11.57%), the revenue of marine business was 9.42 billion (+ 101.8%), the revenue of new energy was 2.09 billion (+ 38.67%), and the commodity trade was 10.1 billion (- 36.7%). 22q1 revenue is 9.29 billion (- 13.32%), and the decline in revenue is expected to be mainly due to the contraction of trade business, which is expected to gradually reduce, which is expected to drive the improvement of gross profit margin, net profit margin and roe.
2. Q1's net profit growth accelerated, with light packaging and high growth prospects
In 21 years, the company realized a net profit attributable to the parent company of 172 million yuan (- 92.43%), which was at the upper limit of the performance forecast. The decline in net profit attributable to the parent company was mainly affected by the risk events of high-end communication business. After excluding the risk provision of the company, the company realized a net profit of 3.145 billion yuan in 21 years, with a year-on-year increase of about 38%. The risk has been fully accrued for 21 years, and 22 young people have taken up the battle. 22q1's profit growth accelerated, realizing a net profit attributable to the parent company of 1.016 billion (+ 106%) and deducting non profit of 1.043 billion (+ 90.4%). We expect that the good development of offshore wind power business will contribute considerable profits. We believe that the company is more focused on the development of its main manufacturing industry, and its businesses have a high outlook. After the full provision of risk matters, the company can expect rapid profit growth in the future.
3. Profitability continues to improve, and there is still room for improvement after the impact of raw materials subsides
On the cost side, the company's gross profit margin has continued to improve in recent years, achieving a gross profit margin of 16.01% in 21 years, with a year-on-year increase of 2.11pp, mainly due to the continuous increase in the proportion of high gross profit margin business of offshore wind power. The gross profit margin of 22q1 reached 22.91%, an increase of 6.90pp compared with the whole year of 21 years and 8.17pp compared with the same period last year (13.08). We expect that the optical communication business will benefit from the rise of centralized purchase prices in 21 years, and the gross profit margin will increase.
On the expense side, the company's net interest rate for the whole year of 21 was 0.61%, a year-on-year decrease of 5.02pp, which was mainly affected by the provision of risk matters. The net profit margin of 22q1 was 11.41%, significantly higher than that of the whole year of 21 years and 6.36pp higher than that of the same period last year (5.05%), mainly due to the significant increase in gross profit margin year-on-year. We believe that after the price rise of raw materials subsides, as the company continues to focus on high gross profit business, and the company may improve its operating efficiency under the effect of scale, there is still room for improvement in its profitability.
4. There are abundant orders on hand and the business is developing rapidly. It is worth looking forward to in the future
1) in the field of optical communication, the bidding share is leading in the industry and the order base is rich; 2) There are abundant orders for marine business. As of the end of December 21, there are still 7 billion yuan of orders for marine business, of which 160 million US dollars have been won in the overseas market in 21 years; 3) The competitiveness of power business is reflected, and the market share of high-voltage engineering, ordinary conductor, special conductor and OPGW remains the first in an all-round way; 4) New energy business continues to expand, and PV + energy storage has made technological / business breakthroughs; 5) Emerging fields: a variety of high-end materials such as high-performance PI film, supercapacitor and high-temperature superconductor have been successfully industrialized.
Profit forecast and investment suggestions:
On the whole, the company focuses on communication + energy, including optical communication, power transmission, marine business and new energy. Among them: 1) the supply-demand relationship of optical fiber and optical cable continues to improve, and the performance elasticity of bidding price increase can be expected; 2) Offshore wind power is expected to fully release the broad space of the industry under the dual carbon goal. As the leader of China submarine cable & Marine Engineering, the company is expected to fully benefit, and pay attention to the global layout of the company; 3) Under the background of ten years' Cultivation of new energy and high prosperity of the industry, the company's energy storage + copper foil + photovoltaic is expected to usher in comprehensive and rapid development opportunities; 4) The power business is highly competitive and is expected to fully benefit from the growth of power grid / EHV investment and construction in the future, which is expected to show a stable and rapid growth trend. The net profit of the company is expected to be 3.9 billion and 4.7 billion yuan in 22-23 years, corresponding to 14x and 12x PE in 22 / 23 years. The net profit in 24 years is expected to be 5.6 billion yuan, maintaining the "buy" rating.
Risk tip: the risk of continuous price rise of raw materials, the bidding progress of offshore wind power projects is less than expected, the fierce industry competition affects the profitability, and the bidding price of optical fiber and optical cable is less than expected
