Brief comment on performance
On April 28, the company released its annual report of 2021 and quarterly report of 2022, with operating income of 21.29 billion yuan in 2021, + 66% of the same period last year, and net profit of 2.57 billion yuan, + 269% of the same period last year. In 2022, Q1 achieved operating income of 6.18 billion yuan, + 64% year-on-year, and net profit of 680 million yuan, + 6% year-on-year, in line with expectations.
Business analysis
Corporate profits rose sharply in 2021 and maintained an optimistic forecast for the whole year. During the reporting period, the price of coal and coke was high, and the production, sales and selling prices of the company's main products increased sharply compared with the same period last year. At the same time, the cost of coking coal for raw materials was high. The company achieved a gross profit margin of 30.3% in 2021, + 8.9% of the same period last year. The net profit of Q1 company is 680 million yuan, + 6% year-on-year, mainly because since the first quarter, coke prices have continued to rise, which is good for the sales of the company's main coke products. At present, coke supply and demand is still tight, and coke prices are high. We expect that coke supply and demand will still be tight this year, and we are optimistic about the company's annual performance.
The holding subsidiary ranks at the forefront of the industry, and its performance in 2022 is expected to benefit from the development of the hydrogen energy industry. Feichi Technology, a subsidiary of the company, will achieve the production of 362 hydrogen fuel cell vehicles in 2021. According to the China Automobile Association, the production of FCV in 2021 will be 1757, accounting for 20.6% of the total, ranking in the forefront of the industry. In March, hydrogen energy medium-and long-term planning was released, determining that "hydrogen" and "electricity" are equally important secondary energy, and the planned volume of FCV is up to 50,000 units. We believe that with the gradual landing of the policy, FCV sales are expected to increase significantly in 2022, and monthly FCV sales in the second half of the year may be thousands. The company is committed to the layout of the whole industry chain, and the company's performance is expected to benefit from the development of hydrogen industry in 2022.
The main industry of coking coal accelerates its transformation, which forms a synergistic effect with the hydrogen energy plate. The company's industrial coal-coke integration, excellent performance of coking business in 2021, the existing coking capacity of 7.15 million tons / year, is currently transforming from traditional energy to hydrogen energy, and the company's by-product coke oven gas is rich in 55% hydrogen. It has one of the important ways of low-cost large-scale hydrogen production at present, which constitutes a synergy between the main coking industry and the hydrogen energy plate.
Profit adjustment and investment suggestions
We are optimistic about the development of the company's traditional business and hydrogen energy industry, as the company's wholly-owned subsidiary Meijin Coal Chemical Coke oven will be shut down and upgraded, and the profit forecast for 2022 will be lowered. The company's 2022-2024 net profit is expected to be 26.1 yuan (down 10.6%) / 3.83 trillion yuan, respectively, corresponding to an EPS of 0.61 million 0.90pm 0.93 yuan, maintaining the "buy" rating.
Risk hint
The major shareholder Meijin Group has a high equity pledge rate; the development of hydrogen energy industry is not as expected; the price of coke is at risk of falling.
