\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 515 Shantou Dongfeng Printing Co.Ltd(601515) )
Main points:
The performance in the year of 21 slightly exceeded the expectation, and a cash dividend of 4.5 yuan was distributed for every 10 shares
The company released its performance in 2021, with annual revenue of 3.81 billion yuan, yoy + 24.0%, and single Q4 revenue of 1.09 billion yuan, yoy + 18.21%; In the whole year, the net profit attributable to the parent company was 790 million yuan, yoy + 43.4%, and the net profit attributable to the parent company in Q4 alone was 200 million yuan, yoy + 18.2%. The gross profit margin will be 31.5% in 2021, with a year-on-year decrease of 5.5 PCTs. 10.5 yuan (including tax) for each additional share to be distributed to all shareholders of the company.
The revenue of drug packaging increased by 91.9% year-on-year, which increased capital and production for subsidiaries, optimized the structure of customers and products, and the revenue side. From the perspective of sub business, the company’s drug packaging business grew the fastest and contributed to the flexibility of performance. In 2021, the drug package business achieved a revenue of 540 million yuan, yoy + 91.9%, accounting for a year-on-year increase of 5pct.
During the reporting period, the company completed the acquisition of its subsidiary Fuxin Huakang and increased its capital by 15 million yuan, initially forming the industrial layout of class I medicine bags and auxiliary materials; Invested 120 million yuan in the film hard film production project to help Fuxin Huakang build a factory and expand production, contributing to performance growth; At the same time, the capital of the first key medicine package of the subsidiary was increased by 11.45 million yuan to support its accelerated development. The company established a wholly-owned subsidiary, Dongfeng pharmaceutical packaging, to coordinate the pharmaceutical packaging business segment, integrate customer resources, develop high-quality foreign pharmaceutical enterprise customers, optimize product and customer structure and improve profitability; On the expense side, the company achieved remarkable results in cost reduction and efficiency increase, with the sales / R & D / management expense ratio of 5.0% / 4.1% / 0.0%, yoy-0.9pct / – 0.3pct / – 0.3pct; On the profit side, the company’s gross profit margin in 2021 was 31.4%, yoy-5.5pct. The decline was mainly due to the impact of international commodity price fluctuations and imported inflation, repeated covid-19 epidemic and poor material supply chain, the annual operating cost increased by 34.58% year-on-year, and the company obtained orders through bidding, resulting in the decrease of sales unit price.
Investment advice
The company has been deeply engaged in cigarette label for 30 years. It is the first echelon enterprise in the cigarette label industry and has the advantages of industrial chain and scale. The layout of the company is high growth track, the long-term space is opened, and the medicine bag and membrane business is growing rapidly. It is estimated that the net profit attributable to the parent company in 202224 will be RMB 960 / 12.2 / 1.42 billion respectively, corresponding to the current share price PE of 11x / 9x / 7X, maintaining the “buy” rating.
Risk tips
The price of raw materials fluctuated sharply, the growth of new business was less than expected, and the policy supervision of HNB exceeded expectations.
