\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event: 1) the company released the annual report of 2021. The annual revenue was 106873 billion yuan, a year-on-year increase of 6.82%, and the net profit attributable to the parent company was 12.033 billion yuan, a year-on-year decrease of 22.04%. At the same time, the company issued the 2021 profit distribution plan and planned to distribute a cash dividend of 4.50 yuan (including tax) for every 10 shares.
2) the company released the first quarterly report of 2022. In 2022q1, the revenue was 20.278 billion yuan, a year-on-year decrease of 39.49%, and the net profit attributable to the parent was 1.59 billion yuan, a year-on-year decrease of 71.29%.
3) the company issued the employee stock ownership plan (Draft) for 2022. The total number of participants in this plan is no more than 6996, no more than 20.5 million shares, and the scale is no more than 485 million yuan.
2022q1 performance is under pressure, with steady growth and overweight to release demand. In 2022q1, the company realized a revenue of 20.278 billion yuan, a year-on-year decrease of 39.49%, and the net profit attributable to the parent company was 1.59 billion yuan, a year-on-year decrease of 71.29%. The main reasons for the decline in performance are: 1) the base in the first quarter of last year was too high, and the net profit attributable to the parent company was the highest in a single quarter in history; 2) The repeated epidemic has caused a decline in the sales of construction machinery and equipment to a certain extent; 3) The company’s overseas sales scale continued to rise, and the international freight price rose; 4) R & D investment continued to increase, and the R & D expense rate reached 7.02% in Q1, an increase of 2.77pct year-on-year. Looking forward to the whole year, we believe that with the mitigation of the epidemic, under the main line of steady growth, a large number of infrastructure projects will be implemented, the stabilization and recovery of real estate is also expected to be very obvious, and the demand for construction machinery will be gradually released.
Digitization, electrification and internationalization continue to be promoted, and the company is optimistic about its long-term competitiveness. 1) Digitization: the company promoted the construction of 22 lighthouse factories in 2021, and has achieved the completion and production of 14 lighthouse factories, with the production capacity increased by 70%, the manufacturing cycle shortened by 50%, and the overall process automation rate increased significantly. 2) Electrification: the company comprehensively promotes the electrification of engineering vehicles, excavation machinery, loading machinery, hoisting machinery and other products. In 2021, the company completed the development of 34 electric products and 20 listed electric products. The products cover three technical routes: pure electricity, power exchange and hydrogen fuel. In 2021, the company achieved a major breakthrough in the sales of electric mixer, electric dump truck and electric crane, and won the annual sales champion. The sales volume of electric engineering vehicles exceeded 1000 units, with a sales volume of nearly 1 billion yuan, and the market share ranked first in the industry. 3) In 2021, the company achieved an international sales revenue of 24.846 billion yuan, a year-on-year increase of 76.16%, including 19.022 billion yuan excluding Putzmeister, an increase of 109%; International revenue accounted for 23.4% of operating revenue, with a year-on-year increase of 9.2pct.
Release the employee stock ownership plan to demonstrate the company’s confidence in development. The company issued the employee stock ownership plan (Draft) for 2022. The participants are directors, supervisors, senior managers, middle-level managers, personnel in key positions and core business (technical) personnel of the company, with a total of no more than 6996 people, a total of no more than 20.5 million shares and a scale of no more than 485 million yuan. The purchase price of repurchased shares in the plan is 23.65 yuan / share (the average price of repurchased shares of the company is 12.70 yuan / share). The employee stock ownership plan of the company covers a wide range of personnel, which fully demonstrates the development confidence of the company.
Profit forecast and investment suggestions: it is estimated that the operating revenue of the company from 2022 to 2024 will be 112223 billion yuan, 118824 billion yuan and 128094 billion yuan respectively, and the net profit attributable to the parent company will be 13.126 billion yuan, 14.739 billion yuan and 16.45 billion yuan respectively, corresponding to EPS of 1.55 yuan, 1.74 yuan and 1.94 yuan respectively, maintaining the “buy” rating.
Risk tip: China’s construction machinery industry has declined, and the growth of overseas exports is lower than expected.
