\u3000\u30003 Eternal Asia Supply Chain Management Ltd(002183) 00218)
Event:
The company released the annual report of 2021, and achieved a revenue of 2.046 billion yuan in 2021, a year-on-year increase of + 32.28%; The net profit attributable to the parent company was 132 million yuan, a year-on-year increase of + 161.42%,; Deduct the net profit not attributable to the parent company of 121 million yuan, a year-on-year increase of + 239.10%; The basic earnings per share is 0.61 yuan.
Guoyuan view:
Continue to optimize the customer structure and promote the performance of volume and price to a new record high
In 2021, the company achieved a revenue of 2.046 billion yuan, a year-on-year increase of + 32.28%; The net profit attributable to the parent company was 132 million yuan, with a year-on-year increase of + 161.42%. The revenue and net profit attributable to the parent company both reached a record high in the same period. Quarter by quarter, q1-4 company achieved a revenue of RMB 443 / 5.10 / 5.35 / 558 million respectively, with a year-on-year increase of + 51.80% / + 95.05% / + 8.01% / + 12.06%, and a net profit attributable to the parent company of RMB 0.28/0.41/0.30/33 million respectively, with a year-on-year increase of + 447.06% / + 601.40% / – 8.05% / – 0.42%, and a month-on-month increase of – 17.39% / + 47.11% / – 25.05% / + 9.33%. In terms of customer development, the company reached a strategic cooperation with IKEA in 2021 and passed the audit and certification of Toyota Motor standard system in Japan, becoming the only Chinese Pu material supplier of Tianjin FAW Toyota; He became a Nike supplier in March and signed a contract with converse in June. In the second half of the year, Xintuo Byd Company Limited(002594) , Google and Oppein Home Group Inc(603833) and other major customers at home and abroad built a stepped customer base. The transformation and upgrading of customers has achieved remarkable results, and the proportion of superimposed high-tech and high value-added products has increased. In 2021, the sales volume of main leather products was + 12.3% year-on-year, and the sales unit price was + 15% year-on-year. The volume and price together drive the high growth of annual performance.
Profitability has been significantly improved, R & D and innovation have been carried out, and product technical barriers have been established,
The upgrading of the company’s customer structure was accelerated, and the proportion of high gross profit products continued to increase, driving the company’s comprehensive gross profit margin to 22.87% from + 3.57pcts year-on-year. Compared with Q3, the gross profit margin of Q4 increased to 22.15% month on month (MOM) + 1.02pcts, up from + 6.79pcts in the same period last year; The comprehensive net interest rate of the whole year improved, with a year-on-year increase of + 3.19pcts to 6.58%, and the net interest rates of q1-4 were 6.20% / 8.29% / 5.74% / 6.13% respectively. On the expense side, the sales expense rate in 2021 increased from + 0.07pcts to 3.39% year-on-year, which was due to the company’s strengthening of product promotion services; The construction of intelligent management and intelligent manufacturing continued to advance, and the operation efficiency was further improved. The management expense ratio / financial expense ratio increased from -0.15pcts / – 0.76pcts to 4.03% / 1.24% year-on-year. The company maintained the strategic focus of R & D drive and increased the R & D of new products with head customers. In 2021, the R & D investment of the company increased by + 50.99% to 128 million yuan year-on-year, and the technical advantages of water-based solventless polyurethane synthetic leather products gradually became prominent.
Global production capacity layout + binding head major customers, clear growth path and open performance increment space
Amway Vietnam’s two production lines are about to be put into operation, with capacity release superimposed and innovation driven product iteration, and the company’s future growth path is clear. It is estimated that the production capacity of eco functional polyurethane synthetic leather and composite materials of the company will reach 100 million meters in 2023. On the basis of deepening cooperation with existing customers, the company continues to explore high-quality customer resources at home and abroad. In 2021, the company will newly expand major customers at home and abroad, such as Google, IKEA, Byd Company Limited(002594) , Nike, oupai furniture, Tianjin FAW Toyota and so on. Driven by the downstream application of head customers, the company’s high gross profit products are expected to continue to increase in volume, the product volume and price rise together, and realize cost reduction and efficiency increase under the superposition of intelligent construction. The upward trend of net interest rate is expected to continue, and there is broad room for future performance increment.
Investment advice and profit forecast
The company’s customers and products are upgraded, the trend of volume increase and price increase is expected to continue, and the performance growth potential is strong. We adjust the profit forecast, and it is expected to achieve revenue of RMB 2.504/30.26/3.611 billion from 2022 to 2024, net profit attributable to the parent company is RMB 170210/253 million, corresponding EPS is RMB 0.78/0.97/1.17 respectively, and the corresponding PE of the current stock price is 16.84/13.63/11.32 times, maintaining the “buy” rating.
Risk tips
Large fluctuations in exchange rates; The price of raw materials fluctuates greatly; The production capacity launch progress is less than expected.
