\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 79 Huali Industrial Group Company Limited(300979) )
In 2021, the performance increased with high quality, the profitability improved continuously, and the “buy” rating was maintained
The company released its annual report for 2021. In 2021, it realized a revenue of 17.47 billion yuan (+ 25.40%), a year-on-year increase of 34% in revenue under the US dollar standard, and a net profit attributable to the parent company of 2.768 billion yuan (+ 47.34%). The company’s core customer concentration has increased, the product structure has been optimized, the profitability has been continuously improved, the production capacity has been released smoothly, the core competitiveness has remained unchanged, and the sports shoe track has maintained a high outlook. We maintain 20222023 and add a profit forecast for 2024. It is estimated that the net profit in 20222024 will be 3.57/45.7/5.4 billion yuan, the corresponding EPS will be 3.1/3.9/4.6 yuan, and the current share price will be 24.2/18.9/16.0 times that of PE respectively, Maintain the “buy” rating.
Existing customers maintain rapid growth, and new customers cooperate smoothly to ensure future increment
In 2021, the revenue of the company’s top five customers totaled 16.010 billion yuan, accounting for 91.65% of the current operating revenue. The revenue of the top five customers was 6.181/37.63/32.08/18.93/965 billion yuan respectively, accounting for 35%, 22%, 18%, 11% and 6% of the current operating revenue respectively. Under the US dollar standard, the revenue increased by 44%, 58%, 13%, 26% and 45% respectively year-on-year. Nike continues to maintain rapid growth. The high growth of Deckers mainly comes from ugg and Hoka. The company cooperates smoothly with new customers on, ASICs and new balance, and will increase rapidly in the future.
The profitability and operating capacity were continuously optimized, and the production expansion plan was carried out as scheduled
(1) in 2021, the company’s gross profit margin was 27.23% (+ 2.42 PCT), the company’s sales / management / R & D / financial expense rate in 2021 was 0.37% / 3.93% / 1.34% / – 0.26% respectively, and the net profit margin was 15.75% (+ 4.57 PCT), mainly due to the optimization of customer and product structure. (2) By the end of 2021, the inventory was 2.671 billion yuan (+ 27.9%), including 851 million yuan (+ 82.0%) for raw materials, mainly due to the increase in orders and the corresponding increase in raw material procurement. The accounts receivable was 2.487 billion yuan (+ 40.5%), and the net cash flow from operating activities was 2.423 billion yuan (- 18.64%), which was mainly due to the impact of the epidemic in 2020, some customers paid in advance through supply chain finance, resulting in the decrease of accounts receivable and a significant increase in cash received by the company in 2020. The company’s balance of cash and cash equivalents at the end of 2021 was 2.954 billion yuan (+ 39.34%). (3) In 2021, the company produced 210 million pairs of shoes (+ 28%), the capacity utilization rate was 95.88% (+ 4.95 PCT), and ASP (USD) increased by about 4.5%. At the end of 2021, the company had 151000 employees (+ 23%). The capacity of the three new factories put into operation in 2021 has climbed smoothly, of which two are expected to have climbed to a higher level by the end of 2021, and the remaining one has begun to make finished shoes. It is expected that the new factory will continue to make efforts in 2022, the old factory will continue to expand, and the overall capacity release will proceed smoothly.
Risk tip: the increase of orders and the release of production capacity are less than expected, the overseas epidemic situation worsens, and the labor cost increases
