\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 55 Jahen Household Products Co.Ltd(300955) )
Event:
The company issued its annual report for 2021.
Comments:
Affected by factors such as the rise of upstream operating costs, the net profit rate decreased slightly
In 2021, the company achieved an operating revenue of 1.161 billion yuan, a year-on-year increase of 19.89%; Affected by the rise of upstream costs, the gross profit margin was 23.77%, down 1.49 percentage points from 2020. The average unit price of synthetic resin with high raw material cost increased from 6.05 yuan / kg in the first half of 2020 to 7.86 yuan / kg in the second half of 2021; The ratio of sales expenses / administrative expenses / R & D expenses / financial expenses is 0.48%/10.01%/1.89%/0.65% respectively; The net profit attributable to the parent company was 97.17 million, a year-on-year increase of 4.02%, and the net profit margin was 8.37%, down 1.28 percentage points; Quarter by quarter, Q1-Q4 company achieved operating revenue of RMB 251 / 2.63/318329 million respectively, an increase of 91.83% / 0.77% / 15.66% / 9.15%; Q1-Q4 realized a net profit attributable to the parent company of RMB 2080 / 1640 / 2727 / 32710000, with a net profit margin of 8.29% / 6.22% / 8.58% / 9.93% respectively.
High growth in cosmetics business, Huzhou new factory further releases production capacity
In terms of business, the cosmetics business achieved a revenue of 630 million yuan, accounting for more than 50%, with a year-on-year increase of 69.78%. The scale and scope of cooperation between the company and Johnson & Johnson, P & G, Yunnan Botanee Bio-Technology Group Co.Ltd(300957) and other head customers were further 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. In terms of R & D, the company continues to introduce senior R & D and market researchers, build a safety and efficacy evaluation system with toxicology and dermatology as the core and an evaluation platform based on consumer experience, and conduct in-depth research in scalp care, skin repair, biotechnology application, packaging design and application of environmental protection materials. In terms of factories, the company’s cosmetics factory in Huzhou has obtained the production license and is expected to be put into operation at the end of the second quarter. The plastic packaging business remained stable, with an operating revenue of 410 million yuan, accounting for 35.30%, a year-on-year increase of 8.43%. Home care products, the company’s strategic contraction, achieved an operating income of 96.9 million yuan, a year-on-year decrease of 51.82%.
Investment advice and profit forecast
We expect that from 2022 to 2024, the company will realize revenue of RMB 1617 / 2163 / 2802 million, net profit attributable to parent company of RMB 141 / 191 / 253 million, EPS of RMB 1.40/1.90/2.51 respectively, corresponding to pe18.00 67 / 13.71/10.37x, maintaining the “buy” rating.
Risk tips
Intensified market competition, loss of customers, repeated epidemics and fluctuations in raw material prices
