\u3000\u3 Bohai Water Industry Co.Ltd(000605) 377 Hangzhou Huawang New Material Technology Co.Ltd(605377) )
In 21 years, the company achieved revenue of 2.94 billion yuan, a year-on-year increase of + 82.40%; The net profit attributable to the parent company was 449 million yuan, a year-on-year increase of + 72.53%, mainly due to the release of the company’s production capacity, the increase of the market share of products, the increase of the demand of downstream customers of wood pulp and the growth of wood pulp trade; 22q1 company achieved a revenue of 756 million yuan, a year-on-year increase of + 19.39%, mainly due to the full release of production capacity due to the commissioning of Ma’anshan raised investment project; The net profit attributable to the parent company was 112 million yuan, with a year-on-year increase of + 14.62%. The growth rate of profit side was less than that of revenue, or because the price of broad-leaved pulp has been rising since the beginning of 22, the company raised the price for hedging, and the cost transmission ability is good. It is suggested to pay attention to the company’s future production capacity release progress, European market expansion and changes in wood pulp prices.
The volume and price of the company’s products have risen simultaneously, and the transmission of cost pressure is relatively smooth. In terms of products, the company’s revenue from Printable / plain decorative base paper / wood pulp trade in 21 years was 1.966191/750 billion yuan respectively, with a year-on-year increase of + 71.57% / + 19.70% / + 153.56%, and the gross profit margin was 25.46% / 26.29% / 11.91% respectively, with a year-on-year increase of -1.34 / – 1.59 / + 7.64pct; In terms of sub regions, the company’s sales in China / abroad in the past 21 years were 2.559348 billion yuan respectively, with a year-on-year increase of + 79.14% / + 101.34%, and the gross profit margin was 22.40% / 19.19% respectively, with a year-on-year increase of + 0.41 / – 9.81pct. In terms of sales volume, the company achieved sales volume of 18.8114400 tons of printable and plain base paper in 21 years, with a year-on-year increase of + 51% / + 3.46%.
In the 21st and 22q1, the cost side was well controlled, and fine management & scientific production scheduling built a competitive barrier. From the expense side, the company’s sales / management / financial expense ratio in 21 years was 0.62% / 1.38% / 0.02% respectively, with a year-on-year increase of -1.97 / + 0.07 / – 0.45pct; The company’s 22q1 sales / management / financial expense ratio was 0.51% / 0.90% / – 0.22% respectively, with a year-on-year increase of -1.48 / + 0.14 / – 0.38pct. The company maintained a stable shipment growth with the advantages of cost control, customer resources and product quality.
The high stability of the company’s products shapes its core competitiveness and highlights its competitive advantage in exporting to Europe and Southeast Asia.
1) production capacity and planning: by the end of the 21st century, the company had 6 globally advanced decorative base paper production lines, with an annual production capacity of 220000 tons of high-end decorative base paper and more than 400 customized production varieties. In January of the 22nd, the 50000 T / a production capacity of Ma’anshan was put into operation, and the 180000 T special paper project (phase I) was accelerated. At that time, the total production capacity of the company will increase to 450000 tons;
2) expansion of application field: the application field of the company’s products has expanded from a series of applications in the traditional home decoration field, such as floor, wooden door, wallboard, wardrobe and cabinet, to outdoor decoration, advertising, aircraft, high-speed railway, hospital, laboratory and other public places, and has gradually become one of the most widely used materials in the decoration material industry;
3) high product stability: in the past 21 years, the company has 206 R & D personnel, accounting for 21.02%. The company’s products have good performance in terms of sun resistance, wear resistance, stability and printing performance. The company’s products have high stability, the penetration rate of medium and high-end decorative base paper is expected to increase, and there is more room for expansion in foreign markets. With the gradual release of production capacity, the company has more room for growth. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 500 / 61 / 730 million respectively, with a year-on-year increase of 12% / 22% / 19%, corresponding to PE 9.2x/7.6x/6.3x.
Risk warning: price fluctuation risk of main raw materials; The risk that wood pulp depends on imports and suppliers are relatively concentrated; Market demand fluctuation risk
