\u3000\u3 Bohai Water Industry Co.Ltd(000605) 377 Hangzhou Huawang New Material Technology Co.Ltd(605377) )
Main points:
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved a revenue of 2.94 billion yuan, a year-on-year increase of 82.4%, and a net profit attributable to the parent company of 449 million yuan, a year-on-year increase of 72.5%; Among them, 21q4 achieved a revenue of 937 million yuan, a year-on-year increase of 82.2%, and a net profit attributable to the parent company of 129 million yuan, a year-on-year increase of 47.5%; 22q1 company achieved a revenue of 756 million yuan, a year-on-year increase of + 19.4%, and a net profit attributable to the parent company of 112 million yuan, a year-on-year increase of + 14.6%.
Capacity release, high revenue growth and strong export growth. As a leading enterprise in China's medium and high-end decorative base paper, the company's decorative base paper revenue was 2.157 billion yuan in 2021, a year-on-year increase of + 65.2%; Among them, the revenue of printable / plain decorative base paper was 1.966191 billion yuan, with a year-on-year increase of + 71.5% / 19.6% respectively. In terms of production and sales, the capacity of decorative base paper in 2021 is 22wt, and the capacity utilization rate / production and sales rate are 94% / 98% respectively. Split the volume and price of the decorative base paper business. The sales volume is + 6.4wt, and the average price is 10700 yuan / ton (+ 12.9%). The contribution of the change of unit price and sales volume to the revenue is 20% and 80% respectively. The pattern of the decorative base paper industry is excellent, the medium and high-end products have a high landscape, and the release of production capacity drives the high growth of revenue. 22q1 company MAANSHAN 5wt is put into operation, and the current on-hand capacity is 27wt, ranking the third in the industry. It is expected that after the second phase 8wt is put into operation in September 23, the capacity will reach 35wt, which is in the period of expansion and growth. In terms of regions, the company's domestic / export revenue in 2021 was 2.56 billion yuan and 350 million yuan respectively, of which export sales were + 101.3% year-on-year, accounting for 12%, high quality + high cost performance, overseas capacity expansion, and the proportion of export sales is expected to continue to increase.
Q1 price increase and landing, optimistic about the gradual realization of profits. The price of raw materials in 22q1 was high, the average price of wood pulp Q1 was + 19% month on month, and the average price of titanium dioxide fluctuated at a high level. In order to cope with the rising cost, the company raised the price of decorative base paper by 1500 yuan / ton from March 10, in addition to wood pulp trade and large-scale centralized mining. The company's customer resources are high-quality, stable and viscous. It is expected that the price increase will be implemented smoothly. 22q1 gross profit margin was 21.4%, with a year-on-year increase of -3.86pct, but a month on month increase of + 6.6pct. In addition, the production capacity of 5wt decorative base paper put into operation in Q1 will also be increased from Q2. In the short term, the profits will be gradually realized after the price increase is implemented; In the medium and long term, the cost rise + high-end trend will continue to optimize the industry pattern. The company is in a period of high growth and expansion, and is expected to continue to increase its market share. It is estimated that the net profit attributable to the parent company in 22-24 years will be 473 / 627 / 730 million yuan, with a year-on-year increase of + 5.5% / 32.5% / 16.9%, and the corresponding PE will be 11.14x / 8.4x / 7.2x respectively, maintaining the "buy" rating.
Risk warning. The price of raw materials fluctuates sharply, the industry competition intensifies, the production capacity is less than expected, the overseas trade environment deteriorates, and the risk of repeated epidemics.
