On February 28, one of the largest plastic pipeline enterprises in South China Guangdong Xiongsu Technology Group Co.Ltd(300599) ( Guangdong Xiongsu Technology Group Co.Ltd(300599) , SZ) released the 2021 annual performance express in. Last year, the company realized an operating revenue of about 2.354 billion yuan, a year-on-year increase of 13.77%; The net profit attributable to the shareholders of the listed company was about 115 million yuan, a year-on-year decrease of 45.91%; The basic earnings per share was 0.34 yuan, a year-on-year decrease of 51.43%.
Guangdong Xiongsu Technology Group Co.Ltd(300599) said that last year, due to the large price rise of PVC resin and other main materials, although the company adjusted the price in time, it was still unable to offset the above adverse effects, resulting in a large decline in net profit.
At the investor exchange meeting at the beginning of this year, Guangdong Xiongsu Technology Group Co.Ltd(300599) said that the prices of PVC and other bulk materials have returned since mid October 2021, and the profitability has gradually improved and returned to normal since the fourth quarter. However, the reporter of the daily economic news noted that in the first three quarters of 2021, Guangdong Xiongsu Technology Group Co.Ltd(300599) achieved a revenue of 1.742 billion yuan and a net profit attributable to shareholders of listed companies of 112 million yuan. Compared with this data, the profitability of Guangdong Xiongsu Technology Group Co.Ltd(300599) in the fourth quarter has not improved significantly.
On the other hand, in the context of the slowdown in real estate demand, Guangdong Xiongsu Technology Group Co.Ltd(300599) is vigorously developing direct marketing channels for municipal engineering customers. The company established a direct selling department in 2021. It is estimated that the municipal engineering business (including direct selling and distribution) will account for more than 10% of the total operating revenue in 2021.
revenue growth and net profit decline for two consecutive years
In the first three quarters of 2021, Guangdong Xiongsu Technology Group Co.Ltd(300599) achieved an operating revenue of 1.742 billion yuan, a year-on-year increase of 22.38%, and a net profit of 112 million yuan, a year-on-year decrease of 30.62%. On January 7 this year, Guangdong Xiongsu Technology Group Co.Ltd(300599) held a teleconference with a group of investors to introduce the performance of the first three quarters of last year.
\u3000\u3000 “From the operating situation in the first three quarters of 2021, the company’s sales revenue maintained a good growth momentum. However, due to the impact of the rise in the prices of main raw materials in the first three quarters, the gross profit level of some products of the company declined, resulting in a decline in the net profit realized from January to September. Since mid October 2021, the prices of PVC and other bulk materials have returned, and the company has made a profit since the fourth quarter of 2021 The profit-making ability has gradually improved and returned to normal. ” At that time, Guangdong Xiongsu Technology Group Co.Ltd(300599) made such analysis.
On February 28, Guangdong Xiongsu Technology Group Co.Ltd(300599) disclosed the performance express of 2021, and achieved a total operating revenue of 2.354 billion yuan, a year-on-year increase of 13.77%; The net profit attributable to the shareholders of the listed company was 115 million yuan, a year-on-year decrease of 45.91%. Based on this calculation, in the fourth quarter, Guangdong Xiongsu Technology Group Co.Ltd(300599) achieved a revenue of about 612 million yuan and a net profit of 03 million yuan, with no trace of improvement in the net profit.
In this regard, Guangdong Xiongsu Technology Group Co.Ltd(300599) explained in the performance express that the company actively took a variety of measures to ensure the orderly development of business and continuously and steadily explore the market. However, due to the large rise in the price of PVC resin and other main materials, although the company took a series of positive measures such as adjusting the price in time, it still could not offset the adverse impact caused by the rise in the price of main raw materials, As a result, the net profit decreased significantly.
Guangdong Xiongsu Technology Group Co.Ltd(300599) previously disclosed that the company will appropriately increase the reserves of raw materials according to the production demand, and appropriately adjust the product structure according to the supply of raw materials and market business conditions, so as to reduce the proportion of products with high cost and low profit.
It should be noted that Guangdong Xiongsu Technology Group Co.Ltd(300599) 2020 also saw revenue growth and net profit decline. In that year, revenue increased by 2.37%, but net profit decreased by 9.11% year-on-year. At that time, Guangdong Xiongsu Technology Group Co.Ltd(300599) also said that the supply price of upstream raw materials fluctuated greatly in the second half of 2020, and the price competition of product business was fierce.
real estate is in recession, and municipal engineering is developing
In fact, the market competition of plastic pipes is relatively fierce The data disclosed by Guangdong Xiongsu Technology Group Co.Ltd(300599) shows that there are more than 3000 large-scale plastic pipeline production enterprises, including 300 enterprises with an annual production capacity of more than 10000 tons, more than 20 enterprises with an annual production capacity of more than 100000 tons, and the total production capacity of Guangdong Xiongsu Technology Group Co.Ltd(300599) is 470000 tons.
The civil field of real estate and construction is the main sales channel of Guangdong Xiongsu Technology Group Co.Ltd(300599) tradition, but in the past few years, the real estate recession has been transmitted to the upstream. Guangdong Xiongsu Technology Group Co.Ltd(300599) is also making adjustments to cope with downstream conditions. The reporter noted that in terms of channels, direct marketing of municipal engineering has become its main force point.
In the performance express, Guangdong Xiongsu Technology Group Co.Ltd(300599) also mentioned that in 2021, the company increased its R & D investment in municipal pipelines, expanded the categories of municipal pipeline products, and established a special municipal pipeline direct sales department. The reporter learned that at present, Guangdong Xiongsu Technology Group Co.Ltd(300599) has developed products that can be used in municipal engineering business, including PE water supply pipe, PE Telecom pipe, PE solid wall drainage pipe, etc.
According to the data of Everbright Securities Company Limited(601788) Research Report, the output of China’s plastic pipeline industry in 2020 was 16.36 million tons, a year-on-year increase of 2.25%. It is estimated that in 2020, the consumption of municipal engineering plastic pipes in China will be about 2.94 million tons, and the market scale of municipal engineering plastic pipes industry will be about 26.5 billion yuan.
From the current industry situation, compared with the real estate field, the payment collection in the field of municipal engineering also has advantages Guangdong Xiongsu Technology Group Co.Ltd(300599) said that the collection cycle of the traditional real estate market is not faster than that of municipal projects. In recent years, great changes have taken place in the capital settlement of Chinese real estate enterprises. The settlement cycle between real estate and suppliers has generally become longer, even longer than some municipal projects. However, many municipal projects are arranged with “special funds for special purposes”, and the collection of funds is more guaranteed.
At the beginning of January this year, Guangdong Xiongsu Technology Group Co.Ltd(300599) disclosed that the municipal engineering business (including direct selling and distribution) of the company is expected to account for more than 10% of the total operating revenue in 2021.
Regarding issues such as Guangdong Xiongsu Technology Group Co.Ltd(300599) procurement, the range of price adjustment and the development planning of follow-up municipal engineering channels, the reporter of the daily economic news also contacted the Guangdong Xiongsu Technology Group Co.Ltd(300599) board secretary office, but relevant people said that the leaders were on a business trip, and it is expected to reply next week, and the reporter will continue to pay attention.
