\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 18 Shandong Nanshan Fashion Sci-Tech Co.Ltd(300918) )
On April 7, Shandong Nanshan Fashion Sci-Tech Co.Ltd(300918) 2021’s annual performance achieved a revenue of 1.492 billion yuan in 2021, an increase of 9.88%, mainly due to the improvement of the epidemic situation in 2021, the steady improvement of China’s economic situation, the active recovery of the textile industry and the continuous rise of the company’s worsted fabric revenue and sales. Among them, the total revenue and growth rate of 21q1-4 were 298 million (+ 7.3%), 360 million (- 2.31%), 361 million (+ 2.66%) and 473 million (+ 31.45%) respectively. In 2021, the net profit attributable to the parent company was 152 million yuan, an increase of 74.17% at the same time. The net profit attributable to the parent company and growth rate of 21q1-4 were 24 million (+ 15.52%), 36 million (+ 26.93%), 36 million (+ 30.52%) and 56 million (+ 433.02%) respectively.
In terms of products, the worsted business revenue in 2021 was 867 million yuan (accounting for 58.14% of the total), an increase of 40.34% at the same time; Clothing business income was 608 million yuan (accounting for 40.73%), with a decrease of 14.84%; Other business income was 17 million yuan (1.12% of the total), with a decrease of 35.58%.
By region, China’s market revenue in 2021 was 1.223 billion yuan (accounting for 81.97%), an increase of 15.69% at the same time; The international market revenue was 269 million yuan (accounting for 18.03%), with a decrease of 10.54%.
By channel, the online sales revenue in 2021 was 782000 yuan (accounting for 0.05%), with a decrease of 50.52%; The direct sales revenue was 1.323 billion yuan (accounting for 88.70%), with a year-on-year increase of 8.45%; The distribution sales revenue was 168 million yuan (accounting for 11.25%), with a year-on-year increase of 23.45%.
The gross profit margin of the company increased by 3.39 PCT to 34.17% and the net profit margin attributable to the parent company increased by 3.77 PCT to 10.22%. By category, the worsted wool interest rate in 2021 was 35.35%, with an increase of 9.36 PCT; The gross profit margin of clothing is 31.1%, with a decrease of 1.74pct; The gross profit margin of other businesses was 84.72%, with a decrease of 3.52pct.
By region, the gross profit margin of China’s market in 2021 was 37.53%, an increase of 2.41 PCT; The gross profit margin in the international market was 18.89%, an increase of 3.37pct.
By channel, the gross profit margin of online sales in 2021 was 87.07%, an increase of 4.41 PCT; The gross profit margin of direct sales was 34.72%, an increase of 2.58pct; The gross profit margin of distribution and sales was 29.63%, with an increase of 11.62pct.
Outlook: 1) strengthen the development of women’s clothing market and create high-end fashionable women’s clothing in China; 2) Adhere to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-channel market layout; 3) Accelerate the upgrading of intelligent manufacturing and get through the MES software system; 4) Invest in the construction of 600 tons of ultra-high molecular polyethylene project to create an innovative source of performance growth; 5) Continue to consolidate the leading position in the fabric market, accelerate the pace of import substitution and develop in depth.
Adjust the profit forecast and maintain the buy rating. In the medium and long term, the company is committed to increasing the proportion of high-quality suits and shirts, giving full play to its industrial chain and technical advantages, and developing advanced customized services along the trend of consumption upgrading; New entry into the field of ultra-high polymer, creating a new engine for the company’s growth, enriching the industrial chain, and is expected to open the ceiling of the company’s growth.
We expect that the company’s EPS from 2022 to 2024 will be 0.51, 0.61 and 0.75 yuan / share respectively (the original values of 22-23 are 0.45 and 0.57 yuan / share respectively), and the corresponding PE will be 19.04, 15.75 and 12.78 times respectively.
Risk warning: business risks caused by force majeure such as “covid-19 epidemic”; Exchange rate fluctuation risk; Human resource risk; Raw material procurement risk, etc.
