\u3000\u3 China Vanke Co.Ltd(000002) 831 Shenzhen Yuto Packaging Technology Co.Ltd(002831) )
Key investment points
Event 1: the company issued the 2021 annual report. The company achieved a revenue of 14.85 billion yuan in 2021, an increase of 25.97% at the same time; The net profit attributable to the parent company was 1.017 billion yuan, a year-on-year decrease of 9.19%; The non net profit deducted was 908 million yuan, a year-on-year decrease of 7.78%. In a single quarter, 21q4 achieved a revenue of 4.795 billion yuan, an increase of 8.73% at the same time; The net profit attributable to the parent company was 350 million yuan, a year-on-year decrease of 24.60%; The non net profit deducted was 324 million yuan, a year-on-year decrease of 13.61%.
Event 2: the company released the first quarterly report of 2022. The company achieved a revenue of 3.351 billion yuan in 2022q1, an increase of 26.02% at the same time; The net profit attributable to the parent company was 221 million yuan, an increase of 32.68% at the same time; The non net profit deducted was 191 million yuan, an increase of 26.18% at the same time.
Lean management improves efficiency and profits are expected to reach the bottom. 1) On the profit side, in 2021, the company achieved a gross profit margin of 21.54% (- 5.29pct.), It is mainly due to the joint influence of factors such as the rise of raw material prices, the appreciation of RMB exchange rate and the impact of the epidemic on supply, and the net interest rate attributable to the parent company is 6.85% (- 2.65 PCT.); 2022q1 single quarter gross profit margin 20.81% (-3.07pct.), The net interest rate attributable to the parent company is 6.59% (+ 0.33pct.), Looking forward to 2022, raw materials and exchange rate are expected to alleviate marginally, and we expect profitability to usher in a repair inflection point. 2) On the expense side, the sales expense rate in 2021 is 2.45% (-0.29pct.); Management fee rate (1 pct-5%); The R & D expense rate is 3.95% (-0.26pct.); The financial expense rate is 1.22% (-0.93pct.), During 2022q1, the expense rate is 12.87% (- 3.79pct.), The operating efficiency of the company continues to improve under lean management.
The core of 3C business is stable, new business starts quickly, and environmental protection is based on the long term. In 2021, the company realized a revenue of 11.384 billion yuan from paper-based high-quality packaging, an increase of 24.98% and a gross profit margin of 21.22% (- 5.97 PCT.); The revenue of packaging supporting products was 2.505 billion yuan, an increase of 25.01% and the gross profit margin was 25.01% (- 3.29 PCT.). From the perspective of splitting downstream industries, 1) consumer electronics: in 2021, the revenue was 9.7 billion yuan (+ 7.7%), and in 2022q1, the revenue was 2.2 billion yuan (+ 18.1%). The company is deeply engaged in consumer electronics packaging, and its core business is basically stable. 2) Socialized packaging: the revenue of wine bags reached 1.33 billion yuan (+ 70.6%) in 2021 and 370 million yuan (+ 30.3%) in 2022q1; In 2021, cigarette packs achieved an income of 880 million yuan (+ 59.7%), and in 2022q1, an income of 150 million yuan (- 6.8%); The revenue of cosmetic packaging was 340 million yuan (+ 15.5%) in 2021 and 100 million yuan (+ 34.4%) in 2022q1. The company’s new market expansion is smooth, and its excellent product delivery ability has been widely recognized by important brand customers. 3) Environmental protection paper and plastic products: in 2021, the revenue will reach 691 million yuan, with an increase of 62.07% and a gross profit margin of 27.13% (- 4.48 PCT.); 2022q1 achieved revenue of 220 million yuan (+ 90%). Focusing on the future, the company closely follows the social development trend and the needs of environmental protection policies, further increases the investment in environmental protection packaging, and lays the foundation for sustainable growth.
The acquisition of Renhe intelligent brings new growth momentum, and the intelligent factory helps the manufacturing capacity to a higher level. 1) Formal acquisition of Renhe Intelligence: the company has officially signed an equity transfer agreement on April 25 to acquire 60% equity of Renhe intelligence with RMB 402 million (including tax). The performance commitment is that the average deducted non net profit from 2021 to 2023 will not be less than 67 million yuan. We expect Renhe intelligence to start consolidation in May. The acquisition will help to improve the company’s production capacity and market position in soft material related products, benefit from the rapid development trend of downstream smart wearable products and smart home products, and bring new growth momentum to the company. 2) Intelligent factory put into operation: the company’s Xuchang Intelligent Manufacturing Industrial Park project has been put into operation. Automation, digitization and intellectualization will drive the upgrading and transformation of enterprise management and further enhance the overall competitiveness of enterprises.
Investment suggestion: the company’s 3C business has maintained a high growth, diversified new business forms, perfect layout, intelligent manufacturing + digital printing industry has set sail, and the growth space has been opened. We expect that the company’s sales revenue from 2022 to 2024 will be 18.150, 22.018 and 26.597 billion yuan, with a year-on-year increase of 22.2%, 21.3% and 20.8%, and the net profit attributable to the parent company will be 1.506, 1.918 and 2.458 billion yuan (considering the downward forecast of raw material cost pressure, the previous forecast value from 2022 to 2023 will be 1.654 and 2.005 billion yuan), with a year-on-year increase of 48.1%, 27.3% and 28.2%, and EPS will be 162, 206 and 2.64 yuan, maintaining the “overweight” rating.
Risk tips: the risk of sharp fluctuations in raw material prices, intensified market competition and rising labor costs
