Shenzhen Jinjia Group Co.Ltd(002191) ( Shenzhen Jinjia Group Co.Ltd(002191) ) event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 5.067 billion yuan, a year-on-year increase of 20.89%; The net profit attributable to the parent company was 1.02 billion yuan, a year-on-year increase of 23.82%; The basic earnings per share is 0.7 yuan / share. Among them, the company achieved a revenue of 1.417 billion yuan in the fourth quarter, a year-on-year increase of 20.06%; The net profit attributable to the parent company was 203 million yuan, an increase of 25.57% year-on-year.
Changes in business structure led to the decline of the company’s gross profit margin. During the reporting period, the company’s comprehensive gross profit margin was 32.21%, a year-on-year decrease of 2.59%. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 28.69%, a year-on-year increase of 3.49% and a month on month decrease of 3.76%. The company’s gross profit margin declined, mainly due to changes in business structure: among the company’s packaging, new tobacco and other three business segments, the proportion of new tobacco business revenue increased from 0.84% to 3.34%, and the proportion of other businesses increased from 12.6% to 18.77%, while the gross profit margins of the company’s new tobacco business and other businesses were 14.05% and 12.21% respectively, far lower than 37.69% of the packaging business, driving the overall gross profit margin down.
The expense rate increased slightly and the net interest rate decreased significantly year-on-year. The company’s expense rate during the period was 13.32%, with a year-on-year increase of 0.59%. Among them, the sales expense ratio was 1.83%, with a year-on-year increase of 0.1%; The management fee rate was 6.93%, with a year-on-year increase of 0.65%; The financial expense ratio was – 0.15%, with a year-on-year decrease of 0.03%; The R & D expense ratio was 4.71%, a year-on-year decrease of 0.14%. In terms of net interest rate, during the reporting period, the company’s net interest rate was 20.83%, with a year-on-year increase of 0.22%. Among them, the company’s net interest rate in 21q4 single quarter was 15.14%, with a year-on-year decrease of 0.08% and a month on month decrease of 11.56%.
The main industry of Tobacco Label continued to recover, and the new tobacco sector grew brightly. During the reporting period, the company’s cigarette label business achieved a revenue of 2.301 billion yuan, a year-on-year decrease of 4.07%, mainly because some regional markets were in the recovery period, with a decrease of 13.79% compared with the previous year; In terms of new-type tobacco, the company expanded production capacity, integrated the industrial chain and paid attention to the changes in customer demand, achieving a revenue of 169 million yuan, a year-on-year increase of 381.16%; The company’s color box business and new packaging materials business also achieved steady growth, with revenue of 1.134 billion yuan and 961 million yuan respectively, with a year-on-year increase of 23.29% and 32.5% respectively.
The layout of the whole new tobacco industry chain is expected to usher in new growth points. The company seized the policy opportunity, comprehensively laid out the new tobacco industry chain, and coordinated the development of atomized e-cigarette and HNB. In terms of atomized electronic cigarette, the company distributes atomized electronic cigarette oil through yunshuo technology; Through Jinjia technology to provide atomized electronic cigarette OEM business, customers cover well-known brands at home and abroad, including suorin, youwo technology, dragon dance technology, etc; Through the joint venture subsidiary yinwei technology, it launched its own brand foogo. In terms of HNB, the company has adopted HNB technology to layout the essence and spices and related materials. Provide HNB cigarette set R & D and production business through Jiayu technology, a joint venture with Yunnan China tobacco; Through Jiaju electronic layout, HNB herbal cigarette bomb OEM and its own brand business. In terms of supply chain, the company established YUNPU Xinghe and acquired Hong Kong Hengtian business to provide comprehensive services such as overseas import and export trade and marketing.
Investment suggestion: the company takes the packaging business as an important basic sector and speeds up the layout of the whole industrial chain of research, production and marketing of new-type tobacco. It is expected to enjoy the development dividend of new-type tobacco by virtue of the first mover advantage under the background of policy implementation. It is expected that the company will achieve EPS of 0.86/1.04/1.25 yuan / share in 2022 / 23 / 24, and the corresponding PE is 13X / 11x / 9x, maintaining the “recommended” rating.
