\u3000\u3 China Vanke Co.Ltd(000002) 831 Shenzhen Yuto Packaging Technology Co.Ltd(002831) )
Event overview
Shenzhen Yuto Packaging Technology Co.Ltd(002831) released the annual report of 2021 and the first quarter report of 2022:
In 2021, the company achieved a revenue of 14.85 billion yuan, a year-on-year increase of + 25.97%; The net profit attributable to the parent company was 1.017 billion yuan, a year-on-year increase of - 9.19%. By quarter, Q4's operating revenue in a single quarter was 4.795 billion yuan, a year-on-year increase of + 8.73%; The net profit attributable to the parent company was 350 million yuan, a year-on-year increase of - 24.60%. Q4's revenue has reached a new high in a single quarter since its listing, and the profit side has declined year-on-year. We expect it to be mainly affected by the rise in the price of upstream raw materials. In terms of cash flow, the net cash flow from operating activities in 2021 was 1.168 billion yuan, a year-on-year increase of + 16.40%, of which the net cash flow from Q4 operating activities was 578 million yuan, a year-on-year increase of + 164.39%, which was mainly due to the low base.
In 2022q1, the company realized an operating revenue of 3.351 billion yuan, a year-on-year increase of + 26.02%; The net profit attributable to the parent company was 221 million yuan, a year-on-year increase of + 32.68%. The performance was beautiful, and the profit growth rate was higher than the income growth. In terms of cash flow, the net cash flow from operating activities of 2022q1 company was 368 million yuan, a year-on-year increase of + 275540%, mainly due to the low base in the same period of last year.
In addition, the company plans to distribute a cash dividend of 2.2 yuan (including tax) for every 10 shares.
Analysis and judgment:
Revenue side: high revenue growth and outstanding performance of new business.
In terms of products, in 2021, the company's paper boutique packaging, packaging supporting products, environmental protection paper plastic products and other businesses achieved revenue of RMB 11.384 billion, 2.505 billion, 691 million and 269 million respectively, with a year-on-year increase of + 24.98%, + 25.01%, + 62.07% and + 8.01% respectively. All major businesses achieved good growth, and the performance of environmental protection paper plastic and other new markets was outstanding. On the basis of deeply cultivating the consumer electronics packaging market, the company continues to expand new businesses, including wine bags, cigarette bags, cosmetics and big health packaging, industrial Internet and environmental protection packaging. The new businesses grow rapidly and gradually become an important driving force for the company's sustained and stable growth. In terms of regions, in 2021, the company achieved revenue of RMB 12.561 billion and RMB 2.289 billion in China and foreign markets respectively, with a year-on-year increase of + 26.53% and + 22.96% respectively. Both domestic and foreign sales maintained steady growth. The company continued to promote the international strategic layout. By the end of 2021, it had established more than 40 production bases around the world. Among them, in the Chinese market, the company had established multiple production bases in major cities to form a national delivery network and quickly improve the delivery response speed. Among them, Xuchang intelligent project has been officially put into operation in a large scale in 2021, realizing the integration of business flow, information flow and logistics, which helps the company further improve quality and efficiency; In the overseas market, the company has six production bases including Vietnam, India, Indonesia and Thailand, which effectively cooperate with the business layout of brand customers.
Profit side: the profitability has declined, and the expense rate has been well controlled during the period.
In terms of profitability, the gross profit margin and net profit margin of the company in 2021 were 21.54% and 7.19% respectively, with a year-on-year increase of -5.29pct and -2.54pct respectively. Among them, the gross profit margin and net profit margin in Q4 were 21.16% and 7.63% respectively, with a year-on-year decrease of -4.04pct and -3.06pct respectively. The profitability declined, which was mainly affected by the rise in the price of upstream raw materials. Benefiting from the company's good period cost rate control, the decline of net profit margin was lower than the gross profit margin. In terms of business, in 2021, the gross profit margin of the company's paper boutique packaging, packaging supporting products, environmental protection paper plastic products and other businesses were 21.22%, 20.39%, 27.13% and 31.33% respectively, with a year-on-year decrease of -5.97pct, -3.29pct, -4.48pct and + 0.37pct respectively. The gross profit margin of main businesses showed a decline in varying degrees. In terms of period expense rate, the period expense rate of the company in 2021 was 13.10%, with a year-on-year rate of -2.48 PCT, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 2.45%, 5.48%, 3.95% and 1.22% respectively, with a year-on-year rate of -0.29 PCT, -1.00 PCT, -0.27 PCT and -0.93 PCT respectively. By quarter, the expense rate of Q4 in a single quarter was 11.20%, with a year-on-year rate of -1.96 PCT, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 1.43%, 4.07%, 3.86% and 1.84% respectively, with a year-on-year rate of -0.53 PCT, -1.63 PCT, + 0.35 PCT and -0.15 PCT respectively. The expense rate during the period was well controlled. In the single quarter of 2022q1, the company's gross profit margin and net profit margin were 20.81% and 6.72% respectively, with a year-on-year decrease of -3.06pct and + 0.19pct respectively. The gross profit margin in Q1 decreased, but the net profit margin increased slightly compared with the same period, mainly benefiting from the company's expense control. In terms of period expense rate, the period expense rate of 2022q1 company was 12.86%, with a year-on-year rate of -3.80pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 2.51%, 5.58%, 3.89% and 0.89% respectively, with a year-on-year rate of -0.86pct, -1.80pct, -1.08pct and -0.07pct. The period expense rate was well controlled.
Investment advice
The company's diversified customer development has gradually achieved results, the share of major consumer electronics customers has continued to increase, and other fields such as wine bags, cosmetics and environmental protection packaging have developed rapidly and can be expected to develop. Considering the impact of the epidemic and the rise of raw material prices, the previous profit forecast was lowered, and the operating revenue of the company from 2022 to 2023 was reduced from 18.217/21.004 billion yuan to 18.013/20.769 billion yuan respectively; From 2022 to 2023, EPS was lowered from 1.77/2.15 yuan to 1.41/1.79 yuan respectively. It is estimated that the company's operating revenue and EPS in 2024 will be 23.843 billion yuan and 2.20 yuan respectively, corresponding to the closing price of 24.97 yuan / share on April 26, 2022, and PE will be 18 / 14 / 11 times respectively, maintaining the "buy" rating of the company.
Risk tips
Risk of sharp fluctuations in raw material prices; The risk that customer expansion is less than expected; The risk of intensified industry competition; Short term epidemic impact.
