Items:
The Southeast Network released its quarterly report for 2022: the company's 2022Q1 realized revenue of 2.726 billion yuan, + 12.03% compared with the same period last year; net profit from its mother was 170 million yuan, + 10.11% compared with the same period last year; and net operating cash flow was-243 million yuan,-173 million yuan compared with the same period last year.
Comments:
Revenue performance grew steadily, and new contracts increased by 65% compared with the same period last year. The company's 22Q1 achieved revenue of 2.726 billion yuan, + 12.03% year-on-year; net profit of 170 million yuan, + 10.11% year-on-year; and deduction of non-net profit of 163 million yuan, + 8.25% year-on-year. The overall performance was in line with expectations. In terms of orders, the company's 2022Q1 construction business newly signed contracts and won the bid for 10.683 billion yuan, + 32.65% compared with the same period last year. Of this total, the newly signed contract was 3.13 billion yuan, + 64.61% over the same period last year; the unsigned contract value was 7.553 billion yuan, an increase of 22.77% over the same period last year. In terms of chemical fiber business operation: the production capacity of ① increased, the production volume of 22Q1POY/FDY/ slices of the company increased by + 25.08%, 19.41% and 4.48% respectively compared with the same period last year; ② sales declined, with year-on-year sales of-26.12% and 10.52%, respectively; and ③ revenue increased by 10.52%, 10.10% and 24.03% respectively, and the unit price of the product increased to a certain extent. In addition, the company continues to promote the strategic transformation of "Assembly + BIPV" and plans to invest in distributed photovoltaic projects in phases. In the first phase of this year, the installed scale of the project is initially estimated to be 101.31MWp, with a total investment of 382 million, all raised by the company. After completion, it is expected to provide about 93 million kWh of clean electricity per year.
Profitability declined slightly and operating cash flow was under pressure. The company's 22Q1 gross profit margin is 12.77%, year-on-year-0.87pct, improved month-on-month, higher 1.58pct than 21Q4. The net interest rate is 6.22%, year-on-year-0.07pct.
Gross profit margin and net profit margin are both lower than the same period last year, which we think may be due to the influence of raw material prices. The period rate is 7.66%, year-on-year-0.04pct, in which the management rate and financial rate are + 0.07pct and + 0.40pct respectively.
R & D rate, sales rate-0.35pct,-0.17pct. The loss of asset impairment was + 5.62 million, compared with-930000 in the same period last year. Other income was 6.26 million, + 93% compared with the same period last year, mainly due to the increase in government subsidies. The net operating cash flow was-243 million yuan, a decrease of 173 million yuan compared with the same period last year, mainly due to higher payment in the current period.
The cash-to-cash ratio is 112.21%, year-on-year + 6.84pct. The asset-liability ratio is 58.63%, year-on-year-3.98pct.
Strategic transformation of "prefabricated buildings + BIPV", the active layout of photovoltaic construction integration industry. 1) Steel structure:
Adhere to the "EPC general contract + No. 1 project" twin-engine drive to improve the intelligent level, the steel structure digital plant with an annual output of 200000 tons has gradually released its production capacity. 2) distributed photovoltaic: the company established Zhejiang Southeast carbon Zhonghe Technology Co., Ltd. in 2021, and set up a joint venture with Zhejiang Foster New Energy to jointly develop photovoltaic power stations. In addition, the company also signed cooperation agreements or investment agreements with Yaqian Town, Xiaoshan Economic Development District, Shanxi Yuncheng Economic Development Zone and Tianjin Port Free Trade Zone. 3) in terms of funds, the company has completed a non-public offering and raised 1.199 billion of funds, mainly for the construction of EPC projects and supplementary liquidity.
Profit forecast, valuation and investment advice: we maintain the company's estimated EPS of 0.60,0.80,0.98 yuan per share in 2022-2024, and the corresponding PE of 14x, 11x and 9x respectively. According to the comparable valuation method, 20x PE is given in 2022 with a target price of 12.0 yuan, maintaining a "strong push" rating.
Risk tips: raw material prices fluctuate sharply, chemical fiber business profits fluctuate sharply, and distributed photovoltaic promotion is not as expected.
