\u3000\u3 China Vanke Co.Ltd(000002) 701 Org Technology Co.Ltd(002701) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 13.885 billion yuan, a year-on-year increase of 20.22%; The net profit attributable to the parent company was 905 million yuan, a year-on-year increase of 19.68%; The basic earnings per share is 0.37 yuan / share. Among them, the company achieved a revenue of 3.254 billion yuan in a single quarter in the fourth quarter; The net profit attributable to the parent company was 79 million yuan.
The price of raw materials rose sharply, driving the decline of gross profit margin. During the reporting period, the company's comprehensive gross profit margin was 15.53%, a year-on-year decrease of 4.26%. The company's gross profit margin declined, mainly because: during the reporting period, due to the epidemic, industrial structure adjustment, production and power restriction and other factors, the prices of aluminum and iron raw materials and processing fees increased significantly throughout the year, and the company's direct material cost increased by 30.23% year-on-year.
The effect of expense control was prominent, and the net interest rate decreased slightly year-on-year. During the reporting period, the company's expenses improved significantly, with the expense rate of 8.13% and a year-on-year decrease of 2.59%. Among them, the sales expense ratio was 1.15%, with a year-on-year decrease of 0.51%; The rate of administrative expenses was 4.02%, a year-on-year decrease of 1.18%; The financial expense ratio was 2.6%, a year-on-year decrease of 0.72%; The R & D expense rate was 0.36%, a year-on-year decrease of 0.18%. In terms of net profit margin, limited by the decline of gross profit margin, the net profit margin of the company during the reporting period was 6.46%, a year-on-year decrease of 0.11%.
Continue to consolidate the advantages of main business and expand business to open up space for future growth. The company's metal packaging products and services business achieved a revenue of RMB 12.197 billion, a year-on-year increase of 17.95%. Among them, in terms of three piece can business, the company's core customer Red Bull disputes tend to be stable and bound to the high-quality leader in the milk powder industry, which will continue to benefit from the growth and localization trend of the milk powder industry in the future; In terms of two-piece can business, the company continues to deepen customer cooperation. At the same time, with the improvement of supply and demand in the two-piece can industry, the profitability is expected to improve. In terms of filling business, the company achieved a revenue of 186 million yuan, a year-on-year increase of 13.54%. The company is deeply bound with well-known brands such as red bull, Yuanqi forest and Coca Cola. During the reporting period, the company has six filling bases with an annual production capacity of more than 2 billion cans. At the same time, based on the "packaging +" strategic development, the company has launched its own brand FMCG products, including "Xiwang" sports nutrition drinks, "yuanyangwuyu" series functional drinks and prefabricated vegetable products, which are expected to contribute to the performance increment in the future.
Investment suggestion: the company is a leading enterprise in China's metal packaging, constantly promoting product and service innovation, expanding business territory and optimistic about the future development of the company. It is expected that the company will achieve eps0 in 2022 / 23 / 24 41 / 0.49/0.56 yuan / share, corresponding to 12x / 10x / 9x PE, maintaining the "recommended" rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
