Tianfeng Securities: Maintain “Buy” rating on China Glass (03300), target price down to HK$4.38_Oriental Fortune Network

　　Tianfeng Securitiesreleaseresearch reportsay, maintainChinese glass(03300) “Buy” rating, rising costs support a higher average float glass price, and at the same time raising the forecast for float glass production and sales, slightly increasing the 2022/23 revenue forecast to 5.4/6.4 billion yuan (original 5.0/5.7 billion yuan) ;Based on the more cautious float glass supply and demand and unit profit expectations than in the previous period, the net profit attributable to the parent in 2022/23 is slightly lowered to 650/850 million yuan (original 780/940 million yuan), and 24 years of new income and net profit attributable to the parent are added. The forecast is 7.5/1.06 billion yuan, and the revenue and net profit attributable to the parent in 2022-24 are 6%/20%/17% and -11%/31%/25%, respectively, corresponding to the EPS in 22-24 (using the mostNew crotchThis) were 0.36/0.47/0.58 yuan, and the target price was lowered to 4.38 Hong Kong dollars.

According to the report, the company’s annual revenue in 2021 is 5.07 billion yuan, a year-on-year increase of 60%;performanceThe forecast is basically the same. In 2021, the volume and price of glass products will rise, and the product sales revenue will be 4.85 billion yuan, a year-on-year increase of 60%. The company’s 2021 fiscal year and the production cost of a single heavy box of h2 glass products are 80 and 85 yuan respectively. The overall production cost in 21FY continues to rise, mainly due to soda ash As well as the fluctuation of fuel prices in the crude oil chain and coal chain, the increase in partial hedging prices has an effect on improving profit margins. The bank estimates that the net profits of glass products in 21FY and 21h2 are 20 and 22 yuan respectively, 21FYyoy+22 yuan, and 21h2hoh+4 yuan.

The bank said that the production and sales of the company’s 21h2 glass products have increased rapidly, which proves that the company’s float production capacity has room for improvement. The company’s scarce float production capacity is due to the upward elasticity of: 1) Continued extension acquisition, 21fy completed the acquisition of Fujian Longtai Holdings (with 1 float line in production and 1 under construction), and completed the wholly-owned acquisition of Huangyu Development ( has a float line under construction). 2) largeshareholderThe integration of its float glass assets may also be gradually advanced. In the context of the attribution of float glass production capacity resources, the flexibility of float glass production capacity may bring scarce growth flexibility and sustainability to the company. On the other hand, as the company gradually promotes the upgrading of kilns, and makes full use of the resources/platform advantages of major shareholders to give full play to its procurement advantages, the company’s production costs may have greater room for optimization; the continuous restoration of the balance sheet is also expected to continue to reduce the financial expense ratio. . The bank believes that the company has better capacity expansion flexibility and cost reduction space, pays attention to the progress of real estate demand restoration, and the sustainability of growth and scarcity are worthy of attention.

(Article source: Zhitong Financial Network)

Article source: Zhitong Financial Network

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Original title: Tianfeng Securities: Maintain “Buy” rating on China Glass (03300), target price down to HK$4.38