\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 529 Shandong Pharmaceutical Glass Co.Ltd(600529) )
The company issued the annual report and the first quarterly report of 2021. In 2021, the company’s revenue was 3.88 billion yuan, an increase of 13.1% at the same time; The net profit attributable to the parent company was 590 million yuan, an increase of 4.7% and eps0.5% 99 yuan / share. In 2021q4, the company achieved a revenue of 1.07 billion yuan, a decrease of 4.1% at the same time; The net profit attributable to the parent company was 120 million yuan, down 19.1% at the same time. In 2022q1, the company achieved a revenue of 1.04 billion yuan, an increase of 12.5% at the same time; The net profit attributable to the parent company was 150 million yuan, down 1.9% at the same time. The company’s revenue is basically in line with expectations, and the profit is lower than expected due to the impact of raw materials and sea freight.
Key points supporting rating
After the price increase, the gross profit margin is stable, and the adverse factors have little impact on the company’s profits. The year-on-year decline in revenue in the fourth quarter was mainly due to the impact of the high base in the fourth quarter of 2020, with a steady increase in month on month performance. The decline in profits was affected by factors such as the rise in sea freight, the sharp increase in raw fuel prices and the purchase of drugs. The company began to raise the price of products in the fourth quarter. It is understood that the current implementation range is between 5% – 8%, which can basically cover 70% of the increase in cost. After the price increase, the gross profit margin of the company remains stable.
The sales volume of main products increased steadily, and the growth rate of high-end products was significant: among high-end products, the sales volume of boron silicon mold bottles in the company almost doubled; 50 million pieces of pre potted products were sold, an increase of 145% at the same time; The sales of medium borosilicate tube bottles was 188 million, an increase of 235% at the same time; The sales of neutral borosilicate ampoules were 55 million, with a year-on-year increase of 150%. The sales volume of the company’s main products with traditional advantages continued to grow steadily, high-end products grew rapidly, and the proportion gradually increased. The upgrading of the company’s product structure is worthy of further expectation.
The consistency evaluation continues to advance, and the demand for China borosilicate products is expected to continue to increase: the 14th five year plan for pharmaceutical industry development issued by the Ministry of industry and information technology and other departments further emphasizes promoting the pharmaceutical auxiliary materials and packaging materials to meet the consistency evaluation of generic drugs. The demand for China borosilicate products is expected to continue to increase, and the company’s active layout is expected to fully benefit.
Valuation
Considering that the company’s performance is slightly lower than expected, we adjust the original profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 4.69 billion yuan, 5.33 billion yuan and 5.93 billion yuan; The net profit attributable to the parent company was 810 million yuan, 1.03 billion yuan and 1.14 billion yuan respectively; EPS is 1.35, 1.73 and 1.92 yuan respectively. Maintain the company’s buy rating.
Main risks of rating
The capacity digestion of medium borosilicate molded bottles was lower than expected, and the cost of raw materials and sea freight increased.
