\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 79 Huali Industrial Group Company Limited(300979) )
After deducting the influence of exchange rate in 21 years, the income and net profit attributable to the parent company were + 34.09% and + 57.55% respectively year-on-year
The company released its annual report for 2021, which achieved an operating revenue of 17.47 billion yuan, a year-on-year increase of 25.40%, a net profit attributable to the parent of 2.768 billion yuan, a year-on-year increase of 47.34%, and a deduction of 2.761 billion yuan of non net profit, a year-on-year increase of 47.21%. EPS is 2.45 yuan, and the proposed dividend per share is 1.1 yuan (including tax).
Since the company's business is mainly quoted and settled in US dollars, and the consolidated statements are denominated in RMB, after deducting the impact of RMB on the exchange rate of US dollars, the operating revenue in 21 years increased by 34.09% year-on-year and the net profit attributable to the parent company increased by 57.55% year-on-year. The growth rate of net profit attributable to the parent company was faster than that of income, mainly due to the contribution of the increase of gross profit margin and the decrease of expense rate. In 21 years, the gross profit margin increased by 2.42pct to 27.23% year-on-year and the net profit attributable to the parent company increased by 2.36pct to 15.84% year-on-year.
Quarterly, the company's operating revenue from 2021q1 to Q4 was + 7.77%, + 28.52%, + 31.46% and + 33.46% year-on-year respectively, and the net profit attributable to the parent company was + 42.29%, + 93.24%, + 30.15% and + 37.39% year-on-year respectively. The net profit attributable to the parent company remained stable on the whole, with 15.58%, 15.89%, 15.91% and 15.94% respectively.
The revenue of the top five customers accounted for 91.65%, with strong year-on-year growth
In terms of component price, the company sold 210 million pairs of sports shoes in 21 years, with a year-on-year increase of 29.46%; It is estimated that the unit price of the US dollar has also increased by about 4.5%.
In terms of brand customers, the revenue of the top five customers accounted for 35%, 22%, 18%, 11% and 6% respectively, accounting for 91.65% in total, with a year-on-year increase of 37.14%. Among them, the revenue of key customers Nike (including Nike brand and converse brand), Deckers and underarmour (after deducting the influence of exchange rate) increased by more than 40%, and the growth of key customers was strong. In terms of new brands, ASICs, on and NewBalance all achieved mass production and shipment in 21 years.
By category, the proportion of sports and leisure shoes, outdoor boots and shoes, sports sandals / slippers and other income was 81.35%, 9.06% and 9.37% respectively, and the income increased by 25.94% (30% +) after deducting the impact of exchange rate), 6.16% and 46.60% (50% +) respectively year-on-year.
In terms of regions, the income of the United States, Europe and other regions accounted for 86.98%, 11.72% and 1.08% respectively, with a year-on-year increase of 24.46%, 27.14% and 160.34% respectively.
The gross profit margin increased year-on-year, the expense rate decreased, the turnover of inventories and accounts receivable accelerated, and the income tax increased significantly
Gross profit margin: the gross profit margin increased by 2.42pct to 27.23% year-on-year in 21 years (the year-on-year caliber increased by more than 3PCT after considering the impact of cost reclassification), mainly due to the company's optimization of customer and product structure and further improvement of production efficiency. By category, the gross profit margins of sports and leisure shoes, sports sandals / slippers and other outdoor boots and shoes were 28.88%, 18.66% and 20.52% respectively, with a year-on-year increase of + 3.44, + 1.50 and + 4.89pct respectively. On a quarterly basis, the gross profit margin from 2021q1 to Q4 was 29.35%, 28.05%, 26.47% and 25.56% respectively. The decline of Q3 gross profit margin was mainly due to the growth of production capacity, epidemic prevention and control expenditure and transportation expenses in Vietnam. The continuous decline of Q4 gross profit margin was mainly due to the reclassification of some sales expenses to operating costs. Under comparable standards, Q4 gross profit margin rebounded compared with Q3.
Period expense rate: during the 21 years, the expense rate decreased by 2.22pct to 5.38% year-on-year, of which the expense rates of sales, management, R & D and finance were 0.37% (year-on-year -1.04pct), 3.93% (-0.33pct), 1.34% (-0.16pct) and -0.26% (-0.70pct) respectively. Among them, the decrease of financial expenses was mainly due to the reduction of interest expenditure in 21 years due to the large-scale borrowing in the restructuring last year, and the arrival of raised funds promoted the increase of interest income and exchange income.
Income tax expenses: the income tax expenses increased by 118.12% year-on-year to 917 million yuan, and the income tax rate increased to 24.88% from 18.28% in 20 years, mainly due to the increase of overseas dividends of the company in 21 years.
Other financial indicators: 1) at the end of the year, the inventory increased by 27.89% to 2.671 billion yuan compared with the beginning of the year, and the inventory turnover days were 67 days, a year-on-year decrease of 8 days.
2) accounts receivable increased by 40.54% to 2.487 billion yuan at the end of the year compared with the beginning of the year, and the turnover days of accounts receivable were 44 days, with a year-on-year decrease of 8 days.
3) the net operating cash flow in the 21st year decreased by 18.64% year-on-year to 2.423 billion yuan. The net operating cash flow decreased year-on-year and the amount was less than the net profit, which was mainly due to the fact that some customers paid for goods in advance through supply chain finance in 20 years, resulting in a high operating cash flow base in the previous year and no such impact in 21 years.
High quality sneaker manufacturer, looking forward to 22 years of continuous development
The consumer demand for Sinotrans Limited(601598) sports shoes recovered strongly in the 21st year. The company has strong new product development ability and can quickly respond to the changes of customer demand. It has expanded production capacity through new factories, factory expansion and the implementation of lean production and other measures to improve the operation efficiency of factories and attract sports brands to increase orders to the company. At the same time, the company also actively promotes the cooperation with new brands. At present, there is great room for customers' orders of new and old brands to improve.
In terms of capacity construction, the impact of the epidemic in Vietnam in 21 years on the company's production is relatively limited, and the company has put three new factories into operation in 21 years and quickly achieved capacity climbing. The company also assisted in the capacity improvement of the original factories by building and purchasing factories. In 21 years, the total capacity reached 219 million pairs, a year-on-year increase of 21.16%, and the capacity utilization rate reached 95.88%. Based on the strong order demand of customers, the company continued to invest in new factories in northern Vietnam and began to build large manufacturing bases in Indonesia. In addition, the company disclosed its social responsibility report for the first time this year, promising to achieve carbon neutrality and improve energy efficiency by 2035, highlighting the leading role and enhancing competitive strength.
In the long run, the prosperity of sporting goods track is high. We are optimistic that the company, as the head manufacturer, will steadily expand its production capacity, continuously optimize the customer structure, cultivate old customers and expand new customers, so as to promote the continuous growth of orders. Considering that the company's performance in 21 years was slightly better than expected, we raised the company's profit forecast for 22-23 years (net profit + 5% and + 5% respectively compared with the previous profit forecast), the corresponding EPS for 22-23 years were 2.97 yuan and 3.62 yuan respectively, the new 24-year profit forecast and the corresponding EPS for 24 years were 4.34 yuan, and the PE for 22 and 23 years were 24 and 20 times respectively, maintaining the "buy" rating.
Risk tip: the impact of the foreign epidemic is higher than expected, and it also affects the company's demand and commencement, the rise of labor costs and the sharp fluctuation of exchange rate.
