\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 567 Shanying International Holdings Co.Ltd(600567) )
Event: Shanying International Holdings Co.Ltd(600567) released the annual report of 2021. In 2021, the company achieved a revenue of 33.033 billion yuan, a year-on-year increase of 32.29%; The net profit attributable to the parent company was 1.516 billion yuan, a year-on-year increase of 9.74%; The net profit after deducting non-profit was 1.200 billion yuan, a year-on-year decrease of 16.10%. In 21q4, the company achieved a revenue of 8.979 billion yuan, a year-on-year increase of 13.19%; The net profit attributable to the parent company was 209 million yuan, a year-on-year decrease of 47.51%; The net profit attributable to the parent company after deducting non profits was 258 million yuan, a year-on-year decrease of 50.36%.
The performance of the company has grown steadily in the past 21 years due to the combination of capacity climbing and booming production and sales
In 2021, the company achieved a revenue of 33.033 billion yuan, a year-on-year increase of 32.29%; The net profit attributable to the parent company was 1.516 billion yuan, with a year-on-year increase of 9.74%. The performance growth was mainly due to the low base in 20 years and the smooth climbing of new capacity in 21 years under the influence of the epidemic. In 2021, the output and sales volume of base paper of the company increased by 18.03% and 12.46% respectively to 6021300 tons and 5820400 tons. Among them, the base paper sales of 21q1-21q4 company and their year-on-year changes were 1.26 million tons (+ 82.87%), 1.55 million tons (+ 19.54%), 1.52 million tons (+ 5.03%) and 1.49 million tons (- 14.53%) respectively; The calculation shows that the average price of box board corrugated paper of 21q1-21q4 company and its year-on-year changes are 393040 yuan / ton (+ 6.90%), 390826 yuan / ton (+ 23.53%), 396565 yuan / ton (+ 13.95%) and 427399 yuan / ton (+ 17.78%) respectively. At the beginning of 21q3, the industry boom fell month on month, resulting in a temporary pressure on the overall profit.
In the 21st year, the profitability was affected by the rising cost, and the cost control was good during the period
In terms of profitability, the gross profit margin of the company decreased by 4.55pct to 12.19% and the net profit margin decreased by 0.86pct to 4.70% in 2021, mainly due to the rapid rise of raw materials, energy, transportation and other costs since 21q3.
The company’s period expenses decreased steadily. In 2021, the company’s period expense rate was 10.29% (- 0.20pct). The sales expense ratio is 1.07% (- 0.30pct); The management expense rate was 4.12% (-0.38pct), which was mainly due to the increase of labor cost; The R & D expense rate is 2.63% (+ 0.52pct), which is mainly due to increasing R & D investment; The financial expense ratio was 2.47% (-0.05pct), which was mainly due to the increase of exchange income.
Steady expansion of production capacity, integrated layout of industrial chain and strengthening the advantages of raw materials
The company’s existing papermaking capacity is 6 million tons in total, and the capacity is still expanding steadily. Among them, Guangdong Shanying’s 1 million ton carton board capacity is expected to be put into operation in mid-2022, and the new output is expected to be 500000 tons in 2022; Zhejiang Shanying 770000 tons of industrial packaging paper is planned to be put into operation by the end of 2022; Jilin Shanying phase I production capacity of 300000 tons of corrugated paper and 100000 tons of straw pulp is expected to be put into operation in 2023. At the same time, the company vigorously develops renewable resource recycling business and actively distributes overseas long fibers. The cost advantage of raw materials is gradually highlighted, which is expected to accelerate the maintenance and improvement of market share.
Investment suggestion: as the leader of China’s box board corrugated paper, the company is steadily expanding its production capacity and continuously strengthening its competitive advantage in the field of raw materials. At the same time, the company actively transforms and distributes its packaging business by using base paper resources, and its future development can be expected. We estimate that Shanying International Holdings Co.Ltd(600567) from 2022 to 2024, the operating revenue will be 37.745 billion yuan, 43.535 billion yuan and 46.821 billion yuan respectively, with a year-on-year increase of 14.27%, 15.34% and 7.55%; The net profit attributable to the parent company was 1.535 billion yuan, 1.763 billion yuan and 1.989 billion yuan respectively, with a year-on-year increase of 1.28%, 14.84% and 12.82%, and the corresponding PE was 8.2x, 7.2x and 6.4x respectively. The investment rating of Buy-A was given.
Risk warning: the risk of continuous rise of raw materials; Risk of demand falling short of expectation; Less than expected risk of capacity expansion
