\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Event 1: the company released its annual report for 2021. The annual operating revenue increased by 6.82% and the net profit attributable to the parent decreased by 22.04%: 1) in 2021, the company achieved a revenue of 106113 billion yuan, a year-on-year increase of + 6.82%, and Q4 achieved a revenue of 18.395 billion yuan, a year-on-year decrease of – 30.45%; 2) In the whole year, the net profit attributable to the parent company was 12.033 billion yuan, a year-on-year increase of – 22.04%, and the net profit attributable to the parent company in Q4 was – 533 million yuan, a year-on-year increase of – 117.89%; 3) In the whole year, the non net profit deducted was 10.291 billion yuan, a year-on-year increase of – 26.22%, and the non net profit deducted in Q4 was – 1.121 billion yuan, a year-on-year increase of – 142.41%. 4) The net operating cash flow of the company in the whole year was 11.904 billion yuan, a year-on-year increase of – 11.29%.
In terms of splitting the company’s business, the product echelons have developed steadily: the five product lines of concrete machinery, excavation machinery, hoisting machinery, piling machinery and pavement machinery achieved sales revenue of 26.674417.50/218.59/51.66/2.706 billion yuan respectively, with a year-on-year increase of – 1.40% / 11.25% / 12.62% / – 24.30% / – 3.51% respectively, and the gross profit margin was 24.99% / 28.94% / 19.59% / 40.71/28.57% respectively, Compared with -2.31pct / – 5.73pct / – 2.08pct / – 4.24pct / – 2.49pct last year, the performance of major product lines stabilized, helping the company’s high-quality development.
Affected by the rise in the price of raw materials, the profitability of the company has declined: the annual gross profit margin of the company was 25.85%, year-on-year -3.97pct, and the gross profit margin of Q4 was 18.87%, year-on-year -9.62pct; The annual net interest rate was 11.62%, year-on-year -4.35pct, Q4 net interest rate was -2.90%, year-on-year -14.72pct; In the past 21 years, the company’s R & D expenditure increased significantly, driving the increase of the expense rate. The expense rate of the company in the past 21 years was 14.83%, with a year-on-year increase of 2.03pct, and the Q4 expense rate was 24.70%, with a year-on-year increase of 8.34pct. Among them, the sales / management / R & D / financial expense rates in the past 21 years were 6.27% / 2.59% / 6.09% / – 0.12% respectively, with a year-on-year change of + 0.94pct / + 0.39pct / + 1.10pct / – 0.40pct respectively. The collection ability continued to improve, and the operating risk was effectively controlled: the company’s Receivable / revenue in 2021 was 18.39%, year-on-year -3.11pct, Q4 receivable / revenue was -17.44%, year-on-year + 5.41pct; The inventory was 18.826 billion yuan, with a year-on-year increase of – 3.73%. It maintained a good collection level under periodic fluctuations, and the operation efficiency continued to improve.
Event 2: the company released the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 20.077 billion yuan, a year-on-year increase of – 39.76%; The net profit attributable to the parent company was 1.59 billion yuan, a year-on-year increase of – 71.29%; The net profit deducted from non parent company was 1.089 billion yuan, a year-on-year increase of – 79.27%; The gross profit margin was 22.17%, year-on-year -7.66pct; The net interest rate was 8.18%, year-on-year -8.77pct; During the first quarter, the expense rate of the company increased. The expense rate in 2022q1 was 16.59%, with a year-on-year increase of 4.85pct, of which the expense rates of sales / management / R & D / finance were 6.69% / 3.25% / 7.02% / – 0.37% respectively, with a year-on-year change of + 0.70pct / + 1.30pct / + 2.78pct / + 0.07pct respectively.
The core competitiveness and market share of the company continued to increase: in 2021, the competitiveness of the company’s products continued to increase, the market share of leading products continued to increase, the sales volume of mining machinery and concrete machinery ranked first in the world, the market share of hoisting machinery and pavement machinery ranked first in the country, the international market maintained strong growth, and the Chinese market remained stable on the whole; The company attaches importance to risk control and operation quality, and the operation of the company has maintained a high level throughout the year.
Lead the electrification of the industry and achieve market breakthrough: new energy and electrification are major opportunities for the development of the construction machinery industry. The company comprehensively promotes the electrification of host products and the development of relevant core technologies, is committed to creating high-quality, low power consumption and high experience electrification products, comprehensively starts the electrification transformation and leads the electrification trend of the industry; In 2021, the company made a breakthrough in the electrification market, among which the electric mixer, electric dump truck and electric crane won the annual sales champion, and the market share of electrification engineering vehicles ranked first in the industry.
Promote the internationalization strategy and achieve high-speed sales growth: the company firmly promotes the internationalization strategy and implements the business strategy of “focusing on ourselves, local operation and service first”. Great progress has been made in the construction of overseas market channels, service capacity and service parts system. In 2021, the company achieved an international sales revenue of 24.846 billion yuan, a significant year-on-year increase of 76.16%, and the world’s major markets achieved high-speed growth, The international sales revenue excluding Putzmeister was 19.022 billion yuan, an increase of 109%; International revenue accounted for 23.4% of operating revenue, up 9.2 percentage points year-on-year.
Profit forecast: considering the downturn of construction machinery and the fundamentals of the company, we lowered the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 10.504 billion (former value 17.92 billion), 11.433 billion (former value 19.94 billion) and 12.25 billion respectively, and the corresponding PE will be 13.34/12.26/11.44x respectively, maintaining the buy rating.
Risk tips: policy risk, market risk, exchange rate risk, raw material price fluctuation risk, etc
