\u3000\u3 Shengda Resources Co.Ltd(000603) 889 Zhejiang Xinao Textiles Inc(603889) )
In 2021, the company achieved an operating revenue of 3.445 billion yuan, with a year-on-year increase of 51.57%, of which the total revenue and growth rate of 21q1-q4 were 637 million yuan (+ 30.45%), 1.123 billion yuan (+ 90.83%), 946 million yuan (+ 47.11%) and 740 million yuan (+ 33.65%) respectively.
In 2021, the net profit attributable to the parent company was 298 million yuan, with a year-on-year increase of 96.93%. The net profit attributable to the parent company and growth rate of 21q1-q4 were 50 million yuan (- 21.84%), 122 million yuan (+ 361.96%), 84 million yuan (+ 592.95%) and 42 million yuan (- 13.06%) respectively.
In 2021, the deduction of net profit not attributable to the parent company was RMB 284 million, with a year-on-year increase of 182.02%, of which the deduction and growth rate of net profit not attributable to the parent company in 21q1-q4 were RMB 49 million (+ 263.92%), RMB 116 million (+ 423.63%), RMB 80 million (+ 580.92%) and RMB 38 million (- 27.87%) respectively.
In terms of products, the business income of wool worsted yarn in 2021 was 2.06 billion yuan (accounting for 59.78%) with a year-on-year increase of 29.15%; The wool top business income was 495 million yuan (accounting for 14.37%), with a year-on-year increase of 24.87%; The revenue from modification treatment, dyeing and finishing and cashmere processing was 41 million yuan (accounting for 1.2% of the total), a year-on-year decrease of 38.04%; Cashmere yarn business income was 830 million yuan (24.1% of the total), with a year-on-year increase of 324.6%; Other business income was 02 million yuan (0.06% of the total), with a year-on-year increase of 3.73%.
By region, the domestic revenue in 2021 was 2.41 billion yuan (accounting for 69.96% of the total), with a year-on-year increase of 59.16%; The overseas revenue was 1.018 billion yuan (accounting for 29.56%) with a year-on-year increase of 37.35%; Other income was 17 million yuan (0.49% of the total), a year-on-year decrease of 3.26%.
The gross profit margin of the company increased by 3.95 PCT to 19.06% year-on-year, and the net profit margin attributable to the parent company increased by 1.99pct to 8.66% year-on-year.
In terms of products, the gross profit margin of wool worsted yarn in 2021 was 23.23%, with a year-on-year increase of 6.4pct; The gross profit rate of wool top was 8.45%, with a year-on-year increase of 5.7pct; The profit rate of dyeing and finishing cashmere and modified cashmere decreased by 62.3% year-on-year; The gross profit margin of cashmere yarn was 13.71%, a year-on-year decrease of 4.19 PCT; Other gross profit margin was 17.57%, with a year-on-year increase of 4.76pct.
By region, the domestic gross profit margin in 2021 was 19.61%, with a year-on-year increase of 3.47 PCT; Overseas gross profit margin was 17.07%, with a year-on-year increase of 4.73pct.
The company adopts an active production promotion mode. In 2021, the output of wool worsted yarn was 14000 tons, with a year-on-year increase of 45.59%, and the sales volume was 13400 tons, with a year-on-year increase of 35.67%; The output of wool top was 5100 tons, with a year-on-year increase of 13.99%, and the sales volume was 5300 tons, with a year-on-year increase of 23.44%; The output of cashmere yarn was 1500 tons, with a year-on-year increase of 311.64%, and the sales volume was 1300 tons, with a year-on-year increase of 368.27%.
Maintain profit forecast and buy rating. The company has been deeply engaged in the wool textile industry for more than 30 years, and the broadband development strategy has achieved remarkable results. The orders in 22 years are expected to be better. We expect the EPS of the company in 22-24 years to be 0.8, 1.0 and 1.2 yuan / share respectively, and the corresponding PE is 7.5, 6.0 and 4.8x respectively.
Risk tips: international environment and trade policy risks; Price fluctuation risk of raw materials such as wool and cashmere; The epidemic situation repeatedly affects production and logistics; Risks such as lower than expected capacity release
