Items:
The company released the mid-2022 report: during the reporting period, the company achieved operating income of 6.051 billion, year-on-year + 12.80%, net profit of 297 million, year-on-year-17.58% 22Q2 operating income of 3.325 billion, year-on-year + 13.45%, net profit of 127 million, year-on-year-38.38%.
Comments:
EPC revenue is growing rapidly, and chemical fiber business is a drag on profits. The company's 22H1 operating income is 6.051 billion, year-on-year + 12.80%, return to the mother net profit of 297 million, year-on-year-17.58%. The growth rate of income has slowed compared with that in the past 21 years, and the growth rate of net profit has declined significantly, which we believe is mainly due to the declining performance of the chemical fiber sector. From the perspective of sub-business, the income of 22H1 in the construction industry reached 4.586 billion yuan, + 24.01% compared with the same period last year, of which the operating income of steel structure subcontracting business was 2.883 billion yuan,-2.43% year-on-year, and that of engineering general contracting business was 1.703 billion yuan, + 129.14% year-on-year. The income of the chemical fiber industry reached 1.368 billion yuan,-12.58% compared with the same period last year, of which the production volume of POY/FDY/ chips was 1574pm, the sales volume was 1.89 million tons, the sales volume was 1.89 million tons, and the revenue was 913pm, respectively. The revenue of other businesses was 97 million yuan, which was-4.47% of the same period last year. Thanks to the optimization of the business structure, the company's general contracting business has grown rapidly, and the construction industry has maintained a steady growth trend; the decline in the income of the chemical fiber industry compared with the same period last year is mainly due to the repeated epidemic situation in some areas and the impact on the supply and demand side of the textile industry to a certain extent. the decline in consumer demand for polyester filament and the decline in the industry boom. In terms of orders, the company's 22H1 accumulated 14.375 billion yuan in newly signed and won contracts, + 20.35% compared with the same period last year, of which the newly signed contract orders were 7.133 billion yuan; the unsigned contract orders were 7.242 billion yuan, and the company's orders grew steadily.
Profitability declined, and rates fell year-on-year during the period. The company's 22H1 gross profit margin is 12.48%, year-on-year-1.72pct, net profit rate is 4.93%, year-on-year-1.73pct, gross profit margin and net profit margin are all lower than the same period last year, which we think may be affected by the price of raw materials. Construction industry gross profit margin 14.64%, year-on-year-0.87pct, chemical fiber industry gross profit margin 4.34%, year-on-year-4.03pct. The period fee rate is 6.53%, year-on-year-0.71pct, sales expense rate / management expense rate / R & D expense rate / financial expense rate is 0.26% 2.82%, 2.87%, 0.58%, respectively, 0.11pctCompare, 0.11pctUniverse, 0.51pctUniverse, 0.20pct; net operating cash flow is-755 million yuan, year-on-year-42.41pct, mainly due to higher payment in the current period.
Strategic transformation of "EPC+BIPV", steadily promote photovoltaic building integration business. 1) Steel structure: prefabricated integrated construction service provider, the new prefabricated steel structure digital plant with an annual output of 200000 tons has released its production capacity one after another. the future EPC project with prefabricated steel structure as the main body is the key direction of the company's general contracting development. 2) distributed photovoltaic: the company signed cooperation agreements with Ya Qian Town, Xiaoshan Economic Development Zone, Shanxi Yuncheng Economic Development Zone and Tianjin Port Free Trade Zone to develop the distributed photovoltaic market and set up an integrated carbon neutralization R & D center for photovoltaic buildings. and undertake the "Zhejiang carbon-new energy" and other distributed photovoltaic key projects; at the same time set up a joint venture company (51% holding), actively layout the photovoltaic building integration market.
Profit forecast, valuation and investment rating: considering the weak prosperity and high cost of the chemical fiber industry in 2022, we adjust the company's EPS forecast for 2022-2024 for 0.43,0.52,0.63 yuan per share (original value is 0.60,0.80,0.98 yuan per share), corresponding to PE for 18x, 15x, 12x respectively. According to the comparable valuation method, 20x PE is given in 2022, with a target price of 8.53 yuan, maintaining a "strong push" rating.
Risk tips: raw material prices fluctuate sharply, distributed photovoltaic advance is not as expected, and the domestic epidemic situation is repeated.
