Revenue increased by 6.66%, net profit increased by 41.61%. In 6.72020, the company achieved revenue of 5.11 billion, an increase of 6.66% over the same period last year, and net profit of 965 million, an increase of 25.49% over the same period last year. The net profit after deducting non-return was 923 million, an increase of 41.61% per share and 2.02 yuan per share (including tax), which was in line with the previous performance forecast. The company's Q4 single-quarter revenue reached 1.236 billion, up 6.62% from the same period last year, and the net profit was 144 million, down 10.04% from the same period last year. The net profit after deducting non-return was 150 million, an increase of 47.74% over the same period last year.
The growth of the company's performance mainly benefits from the increase in sales volume and the strengthening of internal management.
Product sales are on the rise, and the business of the network logistics platform is developing smoothly.
The company's annual cement and clinker sales reached 17.7424 million tons, an increase of 3.3 percent over the same period last year, mixed sales of 190.14 square meters, an increase of 7.1 percent, and aggregate sales of 7.6391 million tons, an increase of 14.78 percent over the same period last year. We estimate that the revenue per ton of cement clinker and the cost per ton are 230 yuan and 154 yuan respectively, an increase of 0.6 yuan and 6.5 yuan respectively over the same period last year. After excluding the expenses related to sales, the cost of the same caliber per ton decreased by about 6.7 yuan over the same period last year. As a result, it is estimated that the gross profit per ton of the same caliber is about 89 yuan, an increase of about 7.3 yuan over the same period. In addition, during the reporting period, the "I'm looking for a car" network freight business developed by the company's wholly-owned subsidiary achieved 24.3564 million yuan in revenue for the first time this year. As a tool for the company to reduce costs and increase efficiency, 370000 vehicles have been put on the line, and the follow-up development is expected to speed up.
The cost control has been further strengthened and the management quality has been continuously optimized.
During the reporting period, the company's cost control capability was further strengthened, with management and finance achieving 5.84% (- 0.53pct) and 0.05% (- 0.36pct) respectively, the sales expense rate reduced from the cost side to about 7.35% (- 1.31pct), and the R & D expense rate slightly increased from 0.04pct to 0.09%. During the period, the total expense rate was 13.33%, a decrease of 2.18pct compared with the same period last year. The company's asset-liability ratio fell further to 19.36%, reaching a record low, with net cash on books of about 290 million yuan and net cash flow of operating activities of 1.09 billion yuan, an increase of 10.3% over the same period last year.
The regional pattern is expected to continue to improve and maintain the "buy" rating.
As the leading cement company in Ningxia, with a market share of nearly 50%, the company has obvious advantages in scale, management, technology, brand and so on. since last year, calcium carbide slag cement clinker enterprises around the region have been replaced by off-peak replacement, and the regional supply pattern has been optimized. This year, major projects in Ningxia plan to invest 154 billion yuan, an increase of 6.6 percent over the actual completion last year, and regional demand is supported. In 21-23, EPS is expected to be 2.4ax 2.7max 2.9RMB / share, corresponding to PE 6.2max 5.5max 5.1x, maintaining a "buy" rating.
Risk hints: the economic downturn exceeded expectations; the regional supply pattern deteriorated; the project landed less than expected.
