Brief comment on performance
On August 25, the company released its results for the first half of 2022. H1 achieved business income of 13.36 billion yuan in 2022, + 50% year-on-year, and net profit of 1.36 billion yuan, + 8.6%, in line with expectations.
Business analysis
Revenue rose sharply in the first half of 2022 compared with the same period last year, and profits were affected by the off-season of the industry. The revenue of the company's main products increased over the same period last year, mainly due to the continuous high operation of coal and coke prices and the commissioning of chemical projects during the reporting period. The second quarter is the off-season of the coke industry, the company's 2022H1 achieved a gross profit margin of 23.3%,-9.67% compared with the same period last year, mainly due to a sharp increase in the cost of coking coal of raw materials, which exceeds the product selling price. The current coke supply and demand is still tight, and the coke price is still high. It is expected that the coke price will maintain the current price in the future, superimposed in the second half of the year as the peak season of the coke industry. It is expected that the company's coke product gross margin will pick up for the whole year. Be optimistic about the company's annual performance.
The holding subsidiary has the largest number of fuel cell heavy trucks in the country in the first half of 2022, and the contribution of hydrogen energy business to revenue is expected to increase. Feichi Technology, a subsidiary of the company, has registered a total of 275 fuel cell heavy trucks in the first half of 2022, ranking first in the country. Considering that most of the first half of the industry is in the stages of signing orders, system design and vehicle testing, the second half of the year is actually the peak of production and sales. From January to June, FCV sales are only about 30% of the whole year. Flying Technology FCV is expected to sell more than 1,000 vehicles for the whole year, contributing nearly 1.5 billion yuan in revenue. In addition, the company has built 4 hydrogenation stations, and a total of 15 hydrogenation integrated energy stations have been started and planned. The layout of the whole industry chain is effective, and it is expected that the contribution of hydrogen business in the company's performance in 2022 is expected to increase.
The main industry of coking coal accelerates its transformation and forms a synergistic effect with the hydrogen energy plate. The company's coking business performed well, and 2022H1 achieved revenue of 13.05 billion yuan, + 47.7% compared with the same period last year, affected by the high price of coal coke. The existing coking capacity is 7.15 million tons per year, the total coke output during the reporting period is 2.8462 million tons, and the coke production and marketing rate is 101.9%. The company acquired 100% equity of Jiashun Coking Company and built a new coal coke hydrogen industry base. The company has gradually transformed and upgraded from traditional energy to hydrogen energy, and the by-product coke oven gas is rich in 55% hydrogen, which can obtain industrial hydrogen on a large scale, low cost and efficiently, so that the main coking industry and hydrogen energy plate form a synergistic effect.
Profit adjustment and investment suggestions
We maintain the company's profit forecast for 2022-2023. It is estimated that the company's net return profit for 2022-2024 will be 2.66 and 2.85 billion respectively, with a corresponding EPS of 0.62 and 0.67 PE, respectively, and a "buy" rating of 25 times the company's 2022 target price per share.
Risk hint
The major shareholder Meijin Group has a high equity pledge rate; the development of hydrogen energy industry is not as expected; the risk of coke price decline
