Main points of investment

The company's quarterly report of 2022. Realized revenue of 2.736 billion yuan, year-on-year + 0.96%, realized net profit of 209 million yuan, year-on-year-35.64%, deducted non-return net profit of 203 million yuan, year-on-year-26.56%.

The net profit rate of sales is 10.94%,-5.42% compared with the same period last year. The decline in net profit compared with the same period last year is mainly due to the rise in coal prices.

The proportion of expenses during the first quarter of 2022 was 6.27%, which was + 0 percentage point higher than that of the same period last year. 1) the sales expense rate is 1.14%, year-on-year + 0.45%, mainly due to the increase in sales service fees; 2) the management expense rate is 4.64%, year-on-year-0.55%; 3) the financial expense rate is 0.16%, + 0.15% year-on-year, mainly due to the increase in interest expenses; 4) the R & D expense rate is 0.34%, year-on-year-0.05%.

The net operating cash flow of the company in the first quarter of 2022 was 1 million yuan, which was + 124 million yuan compared with the same period last year; the net operating cash flow per share was 0 yuan, which was + 0.16 yuan per share compared with the same period last year. From the point of view of the ratio of income to cash, the ratio of income to cash in the first quarter of 2022 was 105.52% and 115.02% respectively, which was + 2.58 and-9.51 percentage points higher than that of the same period last year.

In terms of cash flow, in terms of cash flow, the net cash flow generated by operating activities was 1 million yuan, + 100.55% compared with the same period last year; the net cash flow generated by investment activities was-265 million yuan, + 32.28% compared with the same period last year; and the net cash flow generated by fund-raising activities was 74 million yuan,-20.52% year-on-year.

Profit forecast and rating: we maintain the profit forecast and expect the company's net profit from 2022 to 2024 to be 16.80,17.77 and 1.864 billion yuan respectively, and the PE corresponding to the closing price on April 27 is 5.5,5.2,5.0 times, maintaining the "prudent overweight" rating.

Risk tips: real estate completion continues to decline, raw material prices rise sharply, the risk of bad debt losses caused by accounts receivable, new business expansion is not as expected, and intensified competition leads to a decline in gross profit margin.