\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 062 Shanghai Ailu Package Co.Ltd(301062) )
Core view:
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 1.12 billion yuan, a year-on-year increase of 44.55%; The net profit attributable to the parent company was 145 million yuan, a year-on-year increase of 30.18%; The basic earnings per share is 0.4 yuan / share. Among them, the company achieved a revenue of 327 million yuan in a single quarter in the fourth quarter, a year-on-year increase of 28.62%; The net profit attributable to the parent company was 29 million yuan, a year-on-year decrease of 20.51%.
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 28.56%, a year-on-year decrease of 2.62%. The company's gross profit margin declined, mainly because: during the reporting period, affected by the rise in the prices of base paper, crude oil and other bulk commodities, the cost of raw materials of the company's products rose sharply, higher than the growth rate of revenue.
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, and the expense rate was 13.64%, a year-on-year decrease of 1.23%. Among them, the sales expense ratio was 1.88%, with a year-on-year decrease of 0.24%; The rate of administrative expenses was 7.06%, a year-on-year decrease of 0.51%; The financial expense ratio was 1.31%, a year-on-year decrease of 0.47%; The R & D expense ratio was 3.39%, a year-on-year decrease of 0.01%. 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 12.73%, a year-on-year decrease of 0.9%.
Industrial paper packaging grew rapidly, and composite plastic packaging continued to grow at a high rate. Based on industrial paper packaging, the company expands composite plastic packaging horizontally to build the second growth curve. During the reporting period, the company's industrial paper packaging achieved a revenue of 753 million yuan, a year-on-year increase of 29.14%; Composite plastic packaging achieved a revenue of 277 million yuan, a year-on-year increase of 93.22%, and the proportion of revenue further increased to 24.77%, a year-on-year increase of 6.24%.
Deep binding Shanghai Milkground Food Tech Co.Ltd(600882) , fully benefiting from the growth of cheese industry. According to Euromonitor data, the market scale of China's cheese industry will reach 12.273 billion yuan in 2021. It is expected to continue to grow with 14.65% CAGR in the next five years and reach 24.313 billion yuan in 2026. Shanghai Milkground Food Tech Co.Ltd(600882) ranks first in the cheese industry, with a market share of 27.7%. The company is deeply bound with Shanghai Milkground Food Tech Co.Ltd(600882) and is expected to maintain rapid development in the future.
Investment suggestion: the company is a leader in China's packaging industry. Industrial paper packaging has developed steadily. Composite plastic packaging is bound to be the leading enterprise in the cheese industry. It is expected to maintain high growth in the future. It is expected that the company will achieve basic earnings per share of 0.56/0.74/0.94 yuan / share in 2022 / 23 / 24. The PE is 17x / 13X / 10x, which is covered for the first time and given a "recommended" rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
