\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 339 Bros Eastern Co.Ltd(601339) )
On April 26, Bros Eastern Co.Ltd(601339) released the annual performance of 2021. In 2021, the company achieved an operating revenue of 7.774 billion yuan, a year-on-year increase of 26.73%, including 4.283 billion yuan of Vietnam Blum, a year-on-year increase of 16.42%. The total revenue and growth rate of 21q1-q4 were 1.874 billion (+ 37.5%), 2.046 billion (+ 61.3%), 1.636 billion (+ 5.7%) and 2.218 billion (+ 13.42%) respectively.
In 2021, the net profit attributable to the parent company was 1.371 billion yuan, a year-on-year increase of 274.47%, and the net profit of Vietnam Blum was 939 million yuan, a year-on-year increase of 310.04%. 21q1-q4 net profit attributable to parent company and growth rate were 223 million (+ 212.64%), 328 million (+ 404.22%), 241 million (+ 464.13%) and 579 million (+ 209.65%) respectively.
In terms of products, the revenue of color spinning business in 2021 was 4.836 billion yuan (62.2% of the total), with a year-on-year increase of 34.57%; The revenue of blank yarn business was 2.571 billion yuan (accounting for 33.07%), with a year-on-year increase of 13.8%; Other business income was 367 million yuan (4.73% of the total), with a year-on-year increase of 30.36%.
In terms of customers, the sales of the top five customers in 2021 will be 3.169 billion yuan, accounting for 40.76% of the total revenue.
By region, the domestic revenue in 2021 was 2.692 billion yuan (34.63% of the total), with a year-on-year increase of 17.1%; Overseas revenue was 4.715 billion yuan (60.65% of the total), an increase of 32.66% year-on-year; Other income was 367 million yuan (4.73% of the total), with a year-on-year increase of 30.36%.
The gross profit margin of the company increased by 15.24pct to 26.21% year-on-year, and the net profit attributable to the parent company increased by 11.67pct to 17.63% year-on-year.
In terms of products, the gross profit margin of color spinning in 2021 was 25.58%, with a year-on-year increase of 10.7pct; The gross profit margin of blank yarn was 26.65%, with a year-on-year increase of 22.91pct.
By region, the domestic gross profit margin in 2021 was 19.25%, with a year-on-year increase of 18.19pct; Overseas gross profit margin was 29.78%, with a year-on-year increase of 13.05pct.
In 2021, the yarn output was 246500 tons, with a year-on-year increase of 20.33%, and the sales volume was 241800 tons, with a year-on-year increase of 11.76%.
Strategy and Prospect: establish a perfect new product development and innovation mechanism, update iteratively and consolidate the leading edge; Strengthen technological transformation and upgrading to improve quality and efficiency; Adjust and enrich product structure, and actively follow up customer and market demand; The global layout accumulates stamina, and resources at home and abroad work together to enhance competitiveness.
Maintain profit forecast and buy rating. In the short term, the capacity expansion of fixed increase projects will be gradually released in 22 and 23 years. In the long term, the company continues to improve the added value of products and the supply share of high-quality customers. We expect that the company's EPS in 22-24 years will be 0.91 yuan, 0.91 yuan and 1.05 yuan / share respectively, and PE will be 6.09, 6.05 and 5.26 times respectively.
Risk tips: macroeconomic, industry and market fluctuations; Market competition; Fluctuations in raw materials, energy and labor costs; Foreign exchange policy and other risks.
