\u3000\u3 Bohai Water Industry Co.Ltd(000605) 138 Zhejiang Sunrise Garment Group Co.Ltd(605138) )
22q1 revenue of RMB 1.373 billion increased by 30.5% and net profit attributable to parent company of RMB 62million increased by 43.41%
In 2021, the revenue was 5.157 billion yuan, up 9.68% at the same time. The growth was mainly due to the gradual recovery of the foreign market and the continuous release of the company’s production capacity. The revenue and growth rate of 21q1-4 were 10.52 (- 12.35%), 12.27 (+ 11.61%), 1.309 billion (+ 8.29%) and 1.569 billion (+ 31.48%) respectively.
22q1 revenue was 1.373 billion yuan, with a year-on-year increase of 30.5%. The growth in this period is mainly due to the fact that there is basically no impact of the epidemic abroad, the transportation tends to be normal, the company’s production expansion projects have released production capacity one after another, and the capacity utilization rate has rebounded compared with the same period last year.
In 2021, the net profit attributable to the parent company was 291 million yuan, a decrease of 0.56%, mainly due to the repeated overseas epidemic, the sharp rise of raw materials, poor overseas transportation and other factors, of which the net profit attributable to the parent company of 21q1-4 was 43 million yuan, 131 million yuan, 60 million yuan and 57 million yuan respectively.
The net profit attributable to the parent company in 22q1 was 62 million yuan, a year-on-year increase of 43.41%, which was mainly due to the slowdown in the price rise of raw materials and the control of sales freight, which reduced the impact on the company’s gross profit.
In 2021, the net profit deducted from non parent company was 159 million yuan, with a decrease of 34.1%, of which the net profit deducted from 21q1-4 was 43 million yuan, 41 million yuan, 47 million yuan and 28 million yuan respectively. In Q1, net profit not attributable to the parent company was deducted by RMB 70million, with a year-on-year increase of 61.81%.
In terms of customers, the top five customers accounted for 52.9% of the total revenue in 2021, of which Ralph Lauren’s revenue was 789 million yuan (accounting for 15.31%), a year-on-year increase of 42.23%; UNIQLO’s revenue was 565 million yuan (10.95% of the total), a year-on-year decrease of 14.69%; DevanlayS. The income of a (lacoste) was 545 million yuan (accounting for 10.57%), with a year-on-year increase of 3.35%; Philharmonic’s revenue was 515 million yuan (9.99% of the total), with a year-on-year increase of 2.89%; Hugoboss entered the top five customers for the first time, with a revenue of 315 million yuan (accounting for 6.10% of the total).
The company plans to publicly issue convertible bonds to raise 850 million yuan, which is mainly used for the expansion of knitted fabric production in China, yarn production in Vietnam, energy construction, information construction, working capital supplement and other projects, so as to improve business efficiency and enhance market competitiveness.
Maintain profit forecast and buy rating. We continue to be optimistic about the inflection point of the company’s operation. On the one hand, the sales of Shengtai’s long-term cooperative key customers have recovered and are expected to maintain stable growth. At the same time, we have optimized the customer structure, deepened cooperation with Anta, Li Ning and other national brands, and abundant downstream orders; On the other hand, the company’s factories in Henan, northern Vietnam and other places are expanding production. 22q1 production capacity is released one after another, and the capacity utilization rate is improved smoothly. The automation transformation of some factories may further improve their profitability in the future. We expect that the company’s EPS in 202224 will be 0.74, 0.94 and 1.17 yuan / share respectively, and PE will be 14.55, 11.38 and 9.15 times respectively.
Risk warning: rely on a few customers; The progress of production expansion did not meet expectations; Risks such as continuous obstruction of shipping.
