The performance in 2021 is basically in line with our expectations.
The company announced its 2021 results: revenue was 9.58 billion yuan, up 17.7% from the same period last year, and net profit was 412 million yuan, down 43.1% from the same period last year. The performance is basically in line with expectations.
In 2021, the gross profit margin of the company decreased by 3.9ppt to 13.9% compared with the same period last year, mainly due to the decrease in the divestiture of the real estate business and technology transfer business, in which the gross profit margin of steel structure / building materials / service industry was respectively-0.4/+6.7/-11.1ppt compared with the same period last year, while the decline in the gross profit margin of the service industry was mainly due to the increase in revenue from green construction trade in Wanxian County. The sales / management / R & D / financial expense rate is 0.3% lower than that of the same period last year; the total investment income and asset disposal income decreased by 180 million yuan to 249 million yuan; the effective tax rate was reduced to 9.1%; the net interest rate was reduced to 4.3%, and the non-net interest rate was reduced by 2.2ppt to 2.2%.
The net operating cash outflow in 2021 was 904 million yuan, 889 million yuan more than the same period last year, mainly due to increased expenditure on material procurement, commercial acceptance bills that did not meet the conditions for termination of confirmation at the end of the period, more factoring financing such as "Yunxin", and the impact of delayed payment of some payments; the net outflow of investment cash was 288 million yuan, mainly due to the company's increased capacity construction efforts.
Trend of development
The income of steel structure is growing rapidly, paying attention to the impact of capacity construction and epidemic situation. In 2021, the company's newly signed steel structure orders increased by 6.7% compared with the same period last year; considering that the prosperity of the steel structure industry in 2022 is still high, we are optimistic that the company's orders will grow rapidly in 2022 from a low base. In 2021, the company's steel structure income was 8.32 billion yuan, an increase of 33.9% over the same period last year, reflecting the smooth implementation of the project on hand. The company continues to promote capacity construction, steel structure output in 2021 increased by 27.3% to 872000 tons compared with the same period last year. We are optimistic about the medium-and long-term support of production expansion for revenue growth. At the same time, we also recommend that we pay attention to the short-term impact of the current epidemic on the company's revenue recognition.
Pay attention to BIPV, industrial Internet, Wanxian Green Construction and other new growth points. 1) the first intelligent BIPV production line with an annual output of 1 million square meters was completed in November, with a total contract of more than 2000 million yuan this year. In 2022, the company plans to industrialize high efficiency heterojunction and perovskite laminated battery technology in order to enhance product value and build competitive advantage. It is suggested that we should pay attention to the progress of capacity construction and business expansion of Hete Optoelectronics. 2) the company has built an "industrial energy gathering platform" for steel structure, which has been put into use in 20 factories of the company, basically realizing the real-time traceability of steel components from production to construction. We believe that this is expected to reduce the company's management costs and improve production efficiency; 3) in 2021, new orders for green construction in ten thousand counties are + 68.3% year on year, and revenue in the service industry is + 60.5% year on year. We believe that after three years of training, 2022 million county green construction is expected to turn a profit.
Profit forecast and valuation
Considering the impact of the epidemic, the net profit of 22e was reduced by 12% to 491 million yuan, and the net profit of 23e was introduced of 587 million yuan. It is currently traded at 17max 14x 2022max 23e P Universe E. Considering the company's new business layout, it is expected to provide new growth points, maintaining a target price of 4.53 yuan and a neutral rating, corresponding to 22max 18x 2022max 23e Pmax E and 31% upstream space.
Risk
The domestic epidemic situation has not been effectively alleviated, and the policy of stabilizing growth has fallen short of expectations.