\u3000\u3 China Vanke Co.Ltd(000002) 003 Zhejiang Weixing Industrial Development Co.Ltd(002003) )
Performance summary: the company issued the annual report of 2021. In 2021, the company achieved a revenue of 3.36 billion yuan, a year-on-year increase of 34.4%; The net profit attributable to the parent company after deducting non-profit was 430 million, an increase of 87.2%; Among them, Q4's revenue was 990 million, a year-on-year increase of 44.8%, and the net profit attributable to the parent was 49.38 million yuan, a year-on-year decrease of - 2.7%, deducting the net profit not attributable to the parent was 51.03 million yuan, a year-on-year increase of 40.2%.
Optimized cost control and excellent profitability. In 2021, the gross profit margin was 38%, with a year-on-year decrease of 0.8pp. The gross profit margin decreased slightly, which was mainly affected by the rise of raw materials and the adjustment of accounting policies. The transportation and packaging expenses were changed from sales expenses to costs. If the same caliber was adopted, the gross profit margin increased by 1.4pp year-on-year. In terms of expense rate, the company's total rate in 21 years reached 26.1%, with a year-on-year decrease of 3.5pp, which is mainly due to the decrease of sales expense rate caused by the adjustment of accounting policies and the significant effect of cost reduction and efficiency increase at the production end. Specifically, in 2021, the sales expense rate / financial expense rate / administrative expense rate / R & D expense rate are 7.8% (- 2.7pp) / 13.5% (- 0.4pp) / 0.8% (- 0.4pp) / 4.1% (- 0PP) respectively. In addition to the sales expense rate, the financial expense rate and administrative expense rate have decreased. Benefiting from the improvement of gross profit margin and the continuous optimization of fee control, the net profit margin of the company after deducting non-profit for 21 years reached 13.1%, up 3PP year-on-year.
All businesses have increased rapidly, and the overseas market performance is bright. In 2021, the company's zippers / buttons / other clothing accessories contributed revenue of 1.84 billion yuan (+ 37.9%) / 1.39 billion yuan (+ 26.2%) / 80 million yuan (+ 217.9%), accounting for 41.4% / 54.7% / 2.4% of revenue respectively, and both main businesses increased significantly. In terms of regions, China's / foreign sales revenue in 21 years reached 2.45 billion yuan (+ 29.5%) / 910 million yuan (+ 49.9%), accounting for 72.9% / 27.1% respectively. Among them, the year-on-year growth rate of 21h2 revenue in foreign markets reached 82.9%, and the overseas markets increased significantly.
The production capacity continued to expand and the core advantages were further consolidated. In 2021, the company's button / zipper production capacity reached 11.6 billion pieces (+ 14.9%) / 850 million meters (+ 30.8%), of which China / overseas production capacity accounted for 85% / 15% respectively, and the overall capacity utilization rate was 66.3%. At present, the overseas capacity under construction is the phase III project of Bangladesh Industrial Park and the Vietnam Industrial Park project, and the global capacity layout continues to advance. In terms of volume and price, in 2021, the sales volume of buttons / zippers of the company reached 9.14 billion pieces (+ 15.3%) / 460 million meters (27.4%), and the unit price was 0.2 yuan / piece and 4 yuan / piece respectively, with a year-on-year increase of 9.4% and 8.3% respectively. The increase in unit price alleviated the impact of the rise in raw material costs on profitability, reflecting the further stability of the company's industrial chain barriers.
Profit forecast and investment suggestions. It is estimated that the company's EPS from 2022 to 2024 will be 0.68 yuan, 0.84 yuan and 0.98 yuan respectively, and the corresponding PE will be 18 times, 14 times and 12 times respectively. Considering that the company has been deeply engaged in the auxiliary material industry for decades, has deep advantages in the industrial chain, and the intelligent construction will promote cost reduction and efficiency increase, and the performance will continue to improve steadily. It is given a "hold" rating for the first time.
Risk warning: the risk of the epidemic affecting the release of production capacity; The risk of sharp rise in the price of raw materials; The risk that the growth of new customers is less than expected; Risk of exchange rate fluctuations.
