\u3000\u3 Shengda Resources Co.Ltd(000603) 429 Anhui Genuine New Materials Co.Ltd(603429) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 704 million yuan, a year-on-year increase of 51.6%; The net profit attributable to the parent company was 137 million yuan, an increase of 90.71% year-on-year; The basic earnings per share is 0.37 yuan / share. Among them, the company achieved a revenue of 241 million yuan in a single quarter in the fourth quarter, a year-on-year increase of 50.93%; The net profit attributable to the parent company was 45 million yuan, with a year-on-year increase of 20.02%.
The price of raw materials rose and the gross profit margin of the company decreased slightly. During the reporting period, the company’s comprehensive gross profit margin was 36.68%, with a year-on-year decrease of 0.82%. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 35.73%, with a year-on-year increase of 0.4% and a month on month decrease of 1.15%. The company’s gross profit margin declined slightly, mainly because the cigarette label business grew rapidly, and the proportion of revenue increased to 56.16%, while the gross profit margin of the business was only 29.77%, lowering the overall gross profit margin.
The effect of expense control was remarkable, and the net interest rate increased significantly year-on-year. The company’s expense rate during the period was 9.82%, a year-on-year decrease of 14.16%. Among them, the sales expense ratio was 1.65%, with a year-on-year decrease of 0.04%; The management fee rate was 4.83%, a year-on-year decrease of 12.31%, mainly because the incentive payment expenses of restricted stocks in the previous period were included in the management expenses, resulting in a large base in the same period; The financial expense ratio was – 2.26%, with a year-on-year increase of 0.79%; The R & D expense ratio was 5.61%, a year-on-year decrease of 2.6%. During the reporting period, the company’s net interest rate was 19.65%, with a year-on-year increase of 4.91%. Among them, the net interest rate of 21q4 in a single quarter was 19.97%, with a year-on-year decrease of 2.1% and a month on month decrease of 1.2%. On the premise of a significant decrease in the expense rate, the increase in the net interest rate decreased, mainly because the company made a provision for goodwill impairment of 27 million yuan, resulting in a decline in net profit.
The business of cigarette label and cigarette binding paper will develop in a coordinated manner, and the layout of new tobacco business can be expected in the future. Based on the development of cigarette packaging paper business, the company laid out cigarette label business and achieved coordinated development. During the reporting period, the company’s cigarette label and cigarette packaging paper business achieved revenue of 395 million yuan and 280 million yuan respectively, with a year-on-year increase of 78.96% and 19.28% respectively. At the same time, the company seized the development opportunity of new-type tobacco and jointly established Jiyou Guangyu as the business entity. Its subsidiary Taihu Guangyu launched its own brand “Xiangyu” heating plant core product based on homogenization sheet technology, which was put on sale on April 29, 2021, and its performance is expected to grow rapidly in the future.
Investment suggestion: the company will deeply cultivate the traditional cigarette binding paper business and expand the cigarette label business through resource collaboration. The new tobacco business is expected to fall into the ground in the policy and achieve rapid growth. It is expected that the company will achieve eps0 in 2022 / 23 / 24 67 / 0.9/1.13 yuan / share, corresponding to 29x / 22x / 17x PE, maintaining the “recommended” rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
