Event: the company publishes its 2021 annual report. The company realized operating income of 2.432 billion yuan, an increase of 17.44% over the same period last year; net profit of 155 million yuan, down 13.29% from the same period last year; and non-net profit of 94 million yuan, down 46.34% from the same period last year.
The rising price of raw materials leads to a decline in profitability. For the whole year of 2021, the company achieved operating income of 2.432 billion yuan, an increase of 17.44% over the same period last year. The main reason is that the company continues to strengthen market development. In order to improve market competitiveness, business content has expanded from gasification EPC to plant-wide EPC in recent years. Many EPC projects in this period are under construction, which promotes the growth of income. Among them, the sales income of patent proprietary and general equipment accounts for about 71.84% of the company's operating income, and the construction income accounts for about 23.56% of the company's operating income. The company realized net profit of 155 million yuan, down 13.29% from the same period last year, and deducted non-net profit of 94 million yuan, down 46.34% from the same period last year. It is mainly affected by the rise in the price of raw materials and labor costs. During the reporting period, the company's net operating cash flow was 299 million yuan, an increase of 6.47% over the same period last year. On the one hand, the company strengthened capital budget management, especially strengthened project capital control, and continued to promote the matching of capital revenue and expenditure with the project schedule. On the other hand, the company continued to promote the clean-up of due receivables, and the recovery of accounts receivable was remarkable. The sales of the top five customers of the company were 1.9725546 billion yuan, accounting for 81.12% of the total annual sales, which was relatively concentrated; at the end of the reporting period, the company's asset-liability ratio was 33.39%, an increase in 0.43pct compared with the same period last year. In the first quarter of 2022, the company achieved operating income of 462 million yuan, an increase of 77% over the same period last year, and a net profit of 18 million yuan, an increase of 15.31% over the same period last year. The deduction of non-net profit was 18 million yuan, an increase of 15.76% over the same period last year. Steady improvement in performance.
The newly signed contract is full. During the reporting period, the company signed more than 2.651 billion yuan of new contracts, including "General contract for hydrogen production and ammonia Plant of Fujian Yongrong Science and Technology Co., Ltd. Caprolactam Project (Phase II Project)", with a total contract amount of 1.775 billion yuan, and "EPC General contract contract for Gasification Unit of Jingyuan Coal Power Clean and High efficiency Gasification Gas Comprehensive Utilization (relocation and Transformation) Project", with a total contract amount of 661 million yuan. Henan Jinkai Group Yanhua Chemical Co., Ltd. has an annual output of 600000 tons of synthetic ammonia and 800000 tons of urea and its supporting units with a contract value of 216 million yuan.
Advanced coal chemical industry is an important supplement to petrochemical industry. In the opinions on perfecting the system, Mechanism and Policy measures of Energy Green and low carbon Transformation issued by the National Development and Reform Commission and the National Energy Bureau, it is pointed out that strengthening energy consumption intensity and reducing binding index management should effectively enhance the flexibility of total energy consumption management. new renewable energy and raw material energy are not included in the total energy consumption control, and the reduction target of energy consumption intensity in each region is reasonably determined. Strengthen the connection between the "double control" policy of energy consumption and the target tasks of carbon peak and carbon neutralization. In the long run, energy consumption control and carbon emission control are still long-term means, so advanced and efficient coal gasification technologies with low energy consumption and low carbon emissions will be favored by the market. Due to the lack of oil resources, many chemical raw materials in our country rely on imports, and the cost remains high. Olefins and oil products produced by coal chemical industry are all substitutes for the main products of petrochemical industry. The new coal chemical industry can be used as a good supplement to the petrochemical industry and has a strong strategic significance.
Investment suggestion: the company is expected to have an EPS of 0.33 yuan per share in 2022, corresponding to 34 times of PE, covering for the first time and giving a "recommended" rating.
Risk hint: the risk that the newly signed order is not as expected when it is landed; the risk that the collection of accounts receivable is not as expected.
