\u3000\u3 China Vanke Co.Ltd(000002) 003 Zhejiang Weixing Industrial Development Co.Ltd(002003) )
According to the company's annual report, in 2021, the company achieved an operating revenue of 3.36 billion yuan, a year-on-year increase of 34.4%, a net profit of 449 million yuan, a year-on-year increase of 13.2%, and a significant increase of 74% in net profit after deduction (mainly due to the one-time income from the transfer of military industry business in 2020), of which 21q4 achieved an operating revenue and net profit of 985 million yuan and 49 million yuan, a year-on-year increase of 44.8% and - 2.7%, and a deduction of non-profit increase of 40.24%. The annual report plans to turn 10 to 3 and send 5 yuan.
In terms of products, the volume and price of zipper button business have increased simultaneously, and the growth rate of auxiliary material business is the fastest. 1) Zipper business: in 2021, the revenue reached 1.84 billion, with a year-on-year increase of 37.9%, of which 21h2 increased by 45.7% year-on-year; The annual sales volume was 460 million meters, with a year-on-year increase of 27.4%, and ASP was 4 yuan / meter, with a year-on-year increase of 8.3%; 2) Button business: in 2021, the revenue reached 1.39 billion, with a year-on-year increase of 26.2%, of which 21h2 increased by 21.4% year-on-year; The annual sales volume was 9.14 billion tablets, a year-on-year increase of 15.3%, and ASP was about 0.2 yuan / tablet, a year-on-year increase of 9.4%. 3) Other garment accessories business achieved revenue of 81 million yuan in 2021, with a year-on-year increase of 218% (category expansion under one-stop service mode brings new revenue). In terms of regions, the growth of overseas business has accelerated since 21h2. In 2021, China / overseas business realized revenue of 2.45 billion / 900 million, with a year-on-year increase of 29% and 50%, and 21h2 increased by 25% and 83% year-on-year.
Profitability: after deducting non profits, the growth rate of net profit increased significantly, and the gross profit margin increased by 1.3 PCTs year-on-year. 1) Gross profit margin: the gross profit margin will be 38% in 2021. If the adjustment of accounting standards (reduction of transportation fees and packaging fees) is 40.3%, the gross profit margin will increase by 1.3 PCTs year-on-year. Among them, the zipper and button business achieved a gross profit margin of 36.4% and 41.4%, and the annual comprehensive capacity utilization rate was 66.3%, an increase of 0.7 PCTs year-on-year. 2) Expense ratio: in 2021, the sales (restored) / management / R & D expense ratio was 10.1% / 9.3% / 4.1%, with a year-on-year decrease of 0.4/0.4/0pcts. 3) Effective tax rate: the effective tax rate in 2021 was 13.7%, down 0.2 PCTs year-on-year
The company is committed to becoming a "global and innovative fashion accessories kingdom" with rich highlights in the future, mainly including: 1) establishing a company moat with "products + services" and increasing customer recognition year by year; 2) The international layout has achieved initial results; 3) Look forward to the layout of industrial Internet and digital manufacturing, and actively explore with customers; 4) Actively expand production capacity outside China, improve automation rate and improve operation efficiency. 5) Continued high dividends over the past few years. We believe that the development of the company is entering the fast lane, and the medium and long-term growth is worth looking forward to.
Profit forecast and investment suggestions
According to the annual report, we fine tune the profit forecast from 2022 to 2023, and predict that the earnings per share from 2022 to 2024 will be 0.67, 0.82 and 0.99 yuan respectively (compared with 0.70 and 0.81 yuan in 20222023). With reference to comparable companies, we give the company 22 times PE valuation in 2022, corresponding to the target price of 14.74 yuan, and maintain the "buy" rating of the company.
Risk tip: the economic recovery outside China is lower than expected, and the rise in raw material costs leads to the decline of gross profit margin
