\u3000\u3 China Vanke Co.Ltd(000002) 191 Shenzhen Jinjia Group Co.Ltd(002191) )
Event: the company released the performance express of 2021. The company achieved an annual operating revenue of 5.085 billion yuan, a year-on-year increase of 21.32%; The net profit attributable to the shareholders of the listed company was 1.006 billion yuan, a year-on-year increase of 22.12%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 808 million yuan, a year-on-year increase of 3.71%.
In the 21 years of continuous recovery of cigarette label products, color box products are steady and upward, and actively expand the new tobacco sector
In terms of products, the company’s sales revenue of cigarette label products in 2021 was 2.301 billion yuan, a year-on-year decrease of 4.07%, mainly due to the recovery of the company’s business in some regional markets and the price reduction of some products, which affected the gross profit margin; The company’s color box products achieved a sales revenue of 1.136 billion yuan in 2021, with a year-on-year increase of 23.52%, mainly benefiting from seizing the opportunity of rapid development of subdivided categories such as medium and high-end tobacco and alcohol packaging and 3C electronic product packaging; The company’s new tobacco sector achieved a sales revenue of 190 million yuan in 2021, with a year-on-year increase of 381.16%. The company has made good progress in industrial chain extension and layout, customer expansion and capacity construction. In terms of single quarter, Q4 company achieved a revenue of 1.435 billion yuan, a year-on-year increase of 21.5% and a month on month increase of 19.38%, the highest single quarter revenue level in recent years; Q4 realized a net profit attributable to the parent company of 189 million, with a year-on-year increase of 16.9%. We believe that the company’s Quarterly Orders and revenue have shown a gradual recovery and rising trend. While continuously consolidating the leading advantages of cigarette labels, the company continues to improve its product structure and operating efficiency. It is expected to continue to improve the comprehensive competitiveness and market share of cigarette labels and large packaging business in the future; At the same time, continue to increase investment, extend the layout of the new tobacco sector, constantly develop new technology products and introduce new customers, which is expected to become a new profit growth point of the company.
Comprehensively layout the new tobacco core supply chain and create the second pole of growth!
1) atomized supply chain: in the post regulatory era, it is expected to benefit from the improvement of upstream and downstream concentration of the industrial chain. With the gradual implementation of China’s e-cigarette supervision, it will have a significant impact on the concentration of upstream and downstream private enterprises in the links they can participate in. Driven by technology, the company’s revenue scale has increased rapidly in recent years; The company’s in-depth layout from tobacco oil, atomization equipment and brands to overseas channels is expected to significantly benefit from the development dividend of increasing the concentration of atomization market in the future.
2) HNB supply chain: actively cooperate with China Tobacco in R & D and expand the depth of technology and service categories. In 2018, it established a joint venture subsidiary with Yunnan China tobacco to develop and layout heating non combustion appliances; Jinjia technology, a subsidiary, provides R & D and production services of new tobacco sets for China Tobacco customers in Yunnan, Guizhou, Guangxi, Shanghai and Henan. At the same time, it is expected that the additional capital will be invested in Changyi technology and Jiju electronics, which is expected to benefit from the supply of flavors, new materials and heating appliances in heated non smoked bombs. In addition, by holding Hengtian business, we will build a comprehensive platform for overseas trade services of the tobacco industry, form a comprehensive service system from the R & D and manufacturing of cigarette label products to the trade and export of cigarette products, and strengthen the depth of services and cooperation.
Investment suggestion: according to the company’s performance express, we fine tuned the company’s revenue in 202123 to be RMB 5.08/65.0/85.3 (the previous value was RMB 5.36/67.65/87.17) billion, and the net profit to be RMB 1.006/13.4/17.8 (the previous value was RMB 1.09/14.2/18.5) billion. Considering the company’s active position in the new tobacco supply chain, the “buy” rating is maintained.
Risk tips: industrial policy risk, new product market development risk, raw material price rise risk, business development risk, cooperation or investment process is not as expected; The performance express is the preliminary calculation result, and the specific financial data shall be subject to the annual report disclosed by the company
