\u3000\u30003 Eternal Asia Supply Chain Management Ltd(002183) 00218)
Core view
Anhui Anli Material Technology Co.Ltd(300218) disclosure annual report. In 2021, the annual revenue was 20.46 yuan (+ 32.28%), the net profit attributable to the parent company was 132 million yuan (+ 161.42%), and the net profit not attributable to the parent company was 121 million yuan (+ 239.1%). In the fourth quarter, the single quarter revenue was 558 million yuan (+ 12.1%), and the net profit attributable to the parent company was 33.27 million yuan (- 0.4%). The company’s performance maintained rapid growth, and the growth rate of revenue and deduction of non profits increased quarter by quarter. The company plans to distribute a cash dividend of 2.1 yuan (including tax) for every 10 shares.
The performance is basically in line with expectations, and the product upgrade is at the right time. The annual revenue growth was mainly due to the simultaneous increase of volume and price. The sales volume increased by 12.3% over the same period of the previous year in the previous 21 years. At the same time, considering the increase in the proportion of solvent-free products with higher unit price and more environmental protection in the company’s 21 years, and the optimization of the company’s product structure, the sales unit price of main leather products increased by 15% over the same period of the previous year.
The annual gross profit margin increased significantly, and the price of raw materials affected the performance of gross profit margin in the second half of the year. Benefiting from the double progress of products and customers, the company’s annual gross profit margin increased to 22.9%, up 3.6 percentage points year-on-year in 2020. The company’s procurement cost accounts for more than 60% of the main business cost, and there are many petroleum products derivatives in raw materials. Considering the rise in raw material prices since the second half of 21, the company’s gross profit margin decreased slightly in the second half of 21, and the gross profit margins of Q1-Q4 in 21 were 23.7%, 24.8%, 21.1% and 22.2% respectively.
In the long run, breakthrough environmental protection products are worth looking forward to. Traditional synthetic leather, whether wet or dry, requires a large amount of organic matter to participate in the reaction, resulting in the release of a large amount of VOC (volatile organic compounds) in the production process and the residue of finished products, which affects the health of workers and consumers. In the past few years, a large number of head brands and regulators have strictly regulated the residual concentration of VOC, and the market demand for environmentally friendly products has expanded Anhui Anli Material Technology Co.Ltd(300218) is the leader in developing solvent-free PU synthetic leather products in China. This product can achieve low VOC residue and improve wear resistance, which is in line with the current demand. Benefiting from the increase in the proportion of solvent-free products, the company has gradually increased the proportion of high-quality customers and direct sales in recent years, and has established good cooperative relations with Chinese foreign enterprises such as apple, Nike, Puma and Arthur. We look forward to the double blow of customers, price and profit in the future.
Risk warning: the environmental protection sensitivity of customers decreases; The development of customers is less than expected; Capacity expansion was less than expected.
Investment advice: maintain the “buy” rating. The company’s 21-year financial report is in line with expectations. We maintain the profit forecast of RMB 226 million and 297 million from 2022 to 2023, and the profit forecast of the new company in 2024 is RMB 387 million. The growth rate of net profit attributable to the parent company from 2022 to 2024 is 71.7%, 31.1% and 30.5% respectively, maintaining the “buy” rating.
