\u3000\u3 Shengda Resources Co.Ltd(000603) 899 Shanghai M&G Stationery Inc(603899) )
Events
Shanghai M&G Stationery Inc(603899) released the performance express for 2021: the revenue in 2021 was 17.61 billion yuan (+ 34.0%), the net profit attributable to the parent company was 1.52 billion yuan (+ 20.9%), the EPS (basic) was 1.64 yuan / share (+ 20.7%), and the ROE (weighted) was 27.0% (+ 0.08pct).
Brief comment
21q4 revenue still achieved steady growth under the pressure of high base, and the performance growth rate was significantly improved compared with Q3. In a single quarter, 21q4 achieved a revenue of 5.46 billion yuan, a year-on-year increase of 18.6%. 21q1 / Q2 / Q3 increased by 83.0% / 44.7% / 18.3% at the same time, of which 21q1 and Q2 increased rapidly, mainly due to the low base number caused by the epidemic in the same period in 2020 (20q1 year-on-year – 12%, 20q2 year-on-year + 8%). 21q4 still achieved steady growth under the pressure of a high base with a year-on-year growth rate of 44% in 20q4. On the performance side, 21q4 achieved a net profit attributable to the parent company of 400 million yuan, with a year-on-year increase of 16.9%, which was significantly improved compared with the growth rate of 0.6% in 21q3.
The controlling shareholders of the company acted in concert to increase their holdings by 180 million yuan, demonstrating the company’s confidence in long-term development. On March 2, 2022, the company issued an announcement on the expiration of the implementation period of the share increase plan and the result of the share increase. From December 3, 2021 to March 2, 2022, renkeying investment and Shanghai jiekui investment jointly increased the company’s shares by 3 million shares, accounting for 0.32% of the company’s total share capital, using their own / self raised funds and by means of centralized bidding transactions, The amount of increased holdings was 176 million yuan. After the shareholding increase, the shareholding ratio of Chenguang Group and its persons acting in concert increased from 64.4% to 64.7%.
In 2021, kelip’s key business customers expanded smoothly, and Jiumu sundries agency continued to increase store development. In 2021, klip business benefited from the development of central enterprises, the government and other major customers, and its revenue achieved rapid growth (the revenue in the first three quarters of 21 years increased by 72% year-on-year). At the same time, with the continuous optimization of customer structure, it is expected that the profit margin of klip business will have room for steady improvement in the future. As the bridgehead of the company’s brand upgrading, Jiumu sundries agency continued to increase resource support and rapidly developed stores (the revenue in the first three quarters of 21 years increased by 79% year-on-year). As of 21q3, the company has 496 large retail stores (60 Chenguang life hall and 436 Jiumu sundry agency, respectively – 20 and + 75 compared with the beginning of the year).
Profit forecast: we predict that the total operating revenue of Shanghai M&G Stationery Inc(603899) 20212023 will be 17.61, 21.38 and 26.68 billion yuan, with a year-on-year increase of 34.0%, 21.4% and 22.0%; The net profit attributable to the parent company was RMB 1.52 billion, 1.79 billion and 2.15 billion, with a year-on-year increase of 20.9%, 18.0% and 20.1%. The corresponding PE was 30x, 25X and 21x, maintaining the “buy” rating.
Risk tip: traditional business demand is declining; The development of new business is not as expected.
