\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 55 Jahen Household Products Co.Ltd(300955) )
Core view:
Events
In 2021, the company realized an operating revenue of 1.161 billion yuan, a year-on-year increase of 19.89%; The net profit attributable to the parent company was 97 million yuan, a year-on-year increase of 4.02%; The non net profit deducted from the parent company was 94 million yuan, a year-on-year increase of 3.89%; The net operating cash flow was 100 million yuan, an increase of 32.39% over the same period last year.
Cosmetics OEM business has become the main source of the company's current revenue and the core support for revenue growth. Rich new and old customer resources and cooperative relations ensure the steady expansion of revenue scale
From a business perspective, the company is mainly engaged in the R & D, design and production of daily chemical products OEM / ODM and plastic packaging containers, and the coordinated development of dual businesses. In terms of customers, the main customers include well-known daily chemical companies and cutting-edge brands at home and abroad, including Johnson & Johnson, Shanghai Jahwa United Co.Ltd(600315) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Yu Meijing, bailing, shell, etc. While enhancing the stickiness of old customers, the company selectively increases new customers, continuously improves the number of orders and improves its performance. In terms of production capacity, the company has abundant production capacity and high utilization rate. During the reporting period, the company's production capacity in the three major businesses of plastic packaging containers, cosmetics and home care products reached 870 million / 24500 tons / 25000 tons; The capacity utilization rate is 77% / 98% / 35% respectively, and the capacity supports the effective landing of orders. Among them, plastic packaging containers and cosmetics still have capacity under construction. After completion, the total capacity will reach 1.170 billion / 62500 tons, which is further expanded compared with the current capacity.
From a quarterly perspective, the company's annual business growth showed a trend of low before and high after, and increased quarter by quarter. The growth rate of revenue in the fourth quarter was further higher than that in the third quarter, accounting for the largest proportion of annual revenue in a single quarter, reaching 28.37%. Considering that the seasonal fluctuation of the sales revenue of plastic packaging containers is not obvious, while the sales of cosmetics and home care products are largely affected by the online promotion, and the superposition of autumn and winter seasons releases the skin care demand of consumers, the downstream demand is strong in the third and fourth quarters, and the trend of revenue scale is basically in line with the expectation and the historical data performance of the company. In addition, as the company was greatly affected by the epidemic in 2020q1, the resumption time of itself and some upstream and downstream enterprises was delayed, and the operating rate was low, so there was a low base of scale caused by small negative growth. Therefore, the growth rate of scale in 2021q1 was the highest in a single quarter; Combined with the compound growth rate in the past two years, the quarterly growth trend of the company is relatively stable.
From the perspective of products, the company's products showed differentiated performance in 2021. Among them, the sales volume of cosmetics increased significantly by 69.78%, which exceeded the plastic packaging container business with traditional advantages for the first time. At the same time, it accounted for 134.45% of the annual revenue increment, and the inventory also increased by 45.42% compared with 2020, which was caused by the increase of sales volume and order demand of cosmetics products in 2021 and the corresponding increase in stock. However, home care products fell by - 51.82% year-on-year, and their sales, production and inventory decreased by 51.91%, 52.95% and 32.67% respectively compared with 2020. Considering the decline of orders for disinfectant, laundry detergent and hand sanitizer in 2021, their corresponding production and inventory decreased simultaneously, which is in line with expectations. At this stage, the company's main business income still depends more on the domestic market.
In 2021, the company's net profit attributable to the parent and net profit deducted from non attributable to the parent increased slightly; Among non recurring profits and losses, government subsidies account for a relatively high proportion, with a total subsidy of 2.1981 million yuan.
In 2021, the company's comprehensive gross profit margin decreased by 1.49 PCT, and the period expense rate increased by 0.23 PCT
The net profit margin of the company decreased slightly due to the decline of gross profit margin and the rise of period expenses. The amount of material cost in the company's operating cost increased by 28.73%, higher than the growth rate of revenue. Therefore, it can be seen that materials cause certain cost pressure at the manufacturing end; From the perspective of specific business, the gross profit margin of cosmetics business, which has significantly increased its revenue share, is lower than that of plastic packaging containers, and the gross profit margin decreased year-on-year during the year, resulting in the structural downward movement of the overall gross profit margin of the company.
During the reporting period, except for financial expenses, the scale of expenses in various periods increased by different ranges. The large increase in management expenses is mainly due to employee compensation (increased by 162696 million yuan to 594672 million yuan year-on-year) and depreciation and amortization (increased by 168603 million yuan to 214686 million yuan year-on-year), accounting for the largest increase in expenses during the period; The increase in R & D expenses was mainly due to the company's long-term technical reserves and continuous innovative R & D. during the reporting period, the R & D expenses increased by 3.4237 million yuan year-on-year (including labor costs increased by 1.9782 million yuan to 127342 million yuan year-on-year). During the reporting period, the only decline in financial expenses occurred, with a year-on-year decrease of 1.5659 million yuan to 7.5218 million yuan, of which the exchange loss decreased by 3.4725 million yuan to 1.361 million yuan year-on-year, offsetting the growth brought by other parts of financial expenses.
Continue to increase R & D investment, adhere to innovation and development, and help customers deeply bind resources and accelerate the expansion of cutting-edge markets
Cosmetics and plastic packaging need rapid iterative research and development according to market and customer needs. The company has stable technology research and development ability and product transformation ability. In terms of cosmetics production, the company continues to deepen its investment in formula R & D and optimization, production process optimization and design, so as to achieve safety, efficacy and stability control. In terms of plastic packaging, the company can design and develop the precision molds required for such products, continuously deepen the precision molding and other process technologies, and put forward constructive opinions to customers in the design stage to meet the product design requirements. During the reporting period, the company continued to introduce senior R & D and market researchers, enrich the company's R & D and management team, build a safety efficacy evaluation system with toxicology and dermatology as the core and an evaluation platform based on consumer experience, and carry out in-depth research in scalp care, skin repair, biotechnology application, packaging design and application of environmental protection materials, so as to lay the foundation for the rapid development of the company's business scale. At the same time, the company cooperates with Fudan University, Shanghai Institute of preventive medicine and other scientific research institutions in transdermal absorption research, new product development and efficacy evaluation, so as to further improve the company's R & D capacity in frontier technologies of cosmetics. During the reporting period, 14 patents were obtained, including 11 utility model patents and 3 design patents. The company's main customers are well-known cosmetics, daily chemical products manufacturers and emerging brands in the world and China. The certification procedure for selecting qualified suppliers is strict, complex and takes a long time. Through years of accumulation, the company has successfully entered the qualified supplier system of many international leading brands, and has established a long-term and stable partnership with customers. Through continuous research investment, the company continues to adhere to the business strategy of integrating daily chemical products and plastic packaging business, so as to provide impetus for customers' differentiated competition. During the reporting period, the revenue of cosmetics business increased significantly, the cooperation with existing customers in daily chemical product OEM / ODM and plastic packaging business continued to deepen, and the scale and scope of cooperation with Johnson & Johnson, P & G, Yunnan Botanee Bio-Technology Group Co.Ltd(300957) and other well-known customers were expanded. At the same time, the company further strengthened the development of cutting-edge brands and gradually expanded cooperation with cutting-edge brands such as e-run, PMPM and zhuben.
The construction of raised investment projects will further improve the level of intelligent manufacturing and adhere to the one-stop comprehensive service strategy of multi-point layout
The company has advanced pure water treatment system, air conditioning purification system, MES control system, preparation production line, filling production line, injection molding machine, bottle blowing machine, silk screen printing machine, 100000 class cosmetics clean production workshop and stable production capacity.
With excellent production management, the company can quickly integrate various resources, dynamically adjust capacity allocation, and complete all work such as product design, raw material procurement, production organization and product distribution in a short time, so as to meet customers' requirements for product quality and delivery date. In order to further improve the company's intelligent and digital level, during the reporting period, the company actively promoted the construction of raised investment projects. The management conducted multi-party investigation and demonstration in equipment selection, production process design, intelligent storage, intelligent production and digital integration, and organized professional teams to build and improve R & D management system (PLM), production execution system (MES), warehouse management system (WMS), etc
Digital system provides modern management guarantee for the company to further expand its business scale and improve its profitability. At the same time, after years of development, the company has formed a business structure including a number of subsidiaries and grandchildren, and preliminarily completed the strategic layout of the Yangtze River Delta, Guangdong Hong Kong Macao Great Bay area, Beijing Tianjin Hebei and other regions with the Economic Zone on the West Bank of the Taiwan Strait as the headquarters. The company closely follows customers and industrial applications, arranges production, sales and logistics according to the development layout of major customers, quickly responds to customers' product delivery needs, and provides customers with one-stop manufacturing services for daily chemical products and supporting plastic packaging. From the perspective of integrating and optimizing the customer supply chain, the company has coordinated the development of daily chemical product OEM / ODM and plastic packaging business, reduced the cost of internal and external communication and quality control, and improved the supply efficiency. The company's one-stop service ability can meet the comprehensive needs of customers in the daily chemical product industry for cost control, product quality, delivery cycle and rapid iteration of brand, further enhance customer stickiness, continuously strengthen in-depth cooperation with customers and expand the market share of the company's products.
Investment advice
From the perspective of business, the company is located in the forefront of ODM / OEM industry of cosmetics and daily chemical products in China. It is a well-known supplier of daily chemical products in China. In terms of customers, the company's good quality control has won big brand customers. Its main customers are concentrated in infant and children's products and cosmetics industries, such as Johnson & Johnson, Shanghai Jahwa United Co.Ltd(600315) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) etc. it has high requirements for product quality control ability. The company has successfully integrated into its supply chain system through strict quality certification and assessment and provided long-term services. In terms of R & D, the company always takes technology R & D as the driving force of development. It is one of the few enterprises in the industry with R & D, design and production capacity of daily chemical products and plastic packaging. It continues to introduce senior R & D and market researchers, enrich the company's R & D and management team, and lay the foundation for the rapid development of the company's business scale. In terms of service, the company has won the favor of the market with one-stop OEM service. The geographical layout of the company is perfect. With the Economic Zone on the West Bank of the Taiwan Strait as the headquarters, the company has preliminarily completed the strategic layout of the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Beijing, Tianjin and Hebei, quickly respond to customers' product delivery needs, and provide customers with one-stop manufacturing services for daily chemical products and supporting plastic packaging. We believe that the company's position in the field of cosmetics, daily chemical products OEM / ODM and plastic packaging containers is rising, multi business parallel, rapid market development, one-stop service, and constantly obtain new customers and stabilize old customers. Considering the orderly progress of the construction of cosmetics and plastic packaging container production base in the company's investment projects, Huzhou Jiaheng has successively obtained cosmetics production license, disinfection product production enterprise hygiene license and other certificates in March, which provides qualification guarantee for the subsequent expansion of production capacity and is conducive to the steady growth of the company's business and the effective implementation of the strategic layout, We expect the company to achieve revenue of RMB 1.451/1.797/2.177 billion and net profit attributable to the parent company of RMB 131/1.66/207 million in 2022 / 2023 / 2024, corresponding to EPS of RMB 1.30/1.65/2.06/share and ps1.05/share 70 / 1.37/1.13x, corresponding to pe19 / 15 / 12x, maintaining the "recommended rating".
Risk tips
The risk of sharp rise in the price of raw materials; Risks of intensified industry competition; Risk that the landing effect of production capacity or future orders is not as good as expected.
