\u3000\u3 China Vanke Co.Ltd(000002) 701 Org Technology Co.Ltd(002701) )
Event: Org Technology Co.Ltd(002701) issued the 2021 annual report. In 2021, the company achieved an operating revenue of 13.885 billion yuan, a year-on-year increase of 20.22%; The net profit attributable to the parent company was 905 million yuan, a year-on-year increase of 19.68%; The net profit attributable to the parent company after deduction was 798 million yuan, a year-on-year increase of 53.09%. In 2021q4, the company realized an operating revenue of 3.88 billion yuan, a year-on-year increase of 5.71%; The net profit attributable to the parent company was 80 million yuan, a year-on-year decrease of 70.63%; The net profit attributable to the parent company after deducting non-profit was 14 million yuan, a year-on-year decrease of 90.15%.
The core packaging category grew steadily, and the integrated service mode of filling business deepened customer stickiness
In terms of business, in 2021, the company's metal packaging products and services realized a revenue of RMB 12.197 billion, accounting for 87.84%, with a year-on-year increase of 17.95%; The revenue of filling service was 186 million yuan, accounting for 1.34%, with a year-on-year increase of 13.54%. Specifically, 1) the traditional three piece can business: beverage cans and food cans maintained steady growth. The impact of legal disputes over trademark use license and management right of China Red Bull, the core customer of the company's three piece can, tends to be stable; The company has put into operation Liaoning Kaiyuan production line project and Guizhou beverage can production project supporting the construction of China Red Bull. At the same time, the company started the second "factory in factory" project for the customer Feihe in Kedong factory, and invested in the construction of a new milk powder can production base. 2) Two piece can business: the company has continuously deepened cooperation with its main core customers Tsingtao Brewery Company Limited(600600) and invested in the construction of cans production project in Qingpi Industrial Park, Xuecheng District, Zaozhuang, Shandong Province. 3) Filling business: by the end of 2021, the company has 6 filling bases with an annual production capacity of more than 2 billion cans. It provides packaging + filling integrated solutions for well-known brands such as China Red Bull, JDB, zhanma, Yuanqi forest, Yili, Coca Cola and Dongpeng, and the customer stickiness is increasing.
The "packaging +" strategy enables new drivers of growth, and the extension of the industrial chain accelerates the layout of private brands
The company has launched a series of self owned brand FMCG products through independent research and development and enterprise cooperation. At present, it has carried out promotion and sales in Wuxi Online Offline Communication Information Technology Co.Ltd(300959) simultaneously. The company's own brand products "Xiwang" sports nutrition beverage and "yuanyangwuyu" series of functional drinks launched jointly with its partners have become the flagship products of the company's innovative business; The company cooperates with local governments and well-known enterprises and combines the advantages of local agricultural products to launch prefabricated vegetable products to further break through new fields. In terms of overseas market expansion, in 2021, the company completed the acquisition of jamestong packaging business in Australia, established strategic cooperation with Heinz, Unilever, A2 milk powder and other international well-known food and beverage customers, became the exclusive supplier of A2 milk powder in New Zealand, and promoted the coordinated development of business at home and abroad.
The rise in raw material prices compresses the profit space in the short term, and the expenses are well controlled during the period
In the 21st year, the company's comprehensive gross profit margin was 15.53%, with a year-on-year decrease of 5.34pct, which was mainly due to the adjustment of freight to operating cost in the new income standard, the sharp rise in the price of raw materials such as aluminum and iron, and the comprehensive impact of production and electricity restrictions.
In terms of period expenses, the company's period expense rate in 21 years was 8.13%, a year-on-year decrease of 3.30pct, and the sales / management / R & D / financial expense rates were 1.15% / 4.02% / 0.36% / 2.60% respectively, with a year-on-year increase of -0.62 / - 1.31 / - 0.23 / - 1.14pct respectively. The overall expense control performance was good. Under the comprehensive influence, the net profit margin of the company in 21 years was 6.46%, a slight decrease of 0.26pct year-on-year.
In terms of cash flow, the net cash flow generated by the company's operating activities in 2021 was 1.183 billion yuan, with a year-on-year increase of 51.35%, mainly due to the expansion of income scale, the increase of sales receipts and the increase of materials paid in the previous period.
Investment suggestion: the pattern of the two-piece can industry has been gradually improved. The company has continuously strengthened the integration of "can making + can filling", actively extended the industrial chain and developed the "packaging +" strategy, with a good development momentum. We expect the operating revenue of Org Technology Co.Ltd(002701) 20222024 to be RMB 15.355 billion, 16.783 billion and 17.982 billion, with a year-on-year increase of 10.59%, 9.30% and 7.14%; The net profit attributable to the parent company was 945 million yuan, 1060 million yuan and 1193 million yuan, with a year-on-year increase of 4.35%, 12.23% and 12.56%, corresponding to PE of 13.0, 11.6 and 10.3. The investment rating of Buy-A was given.
Risk warning: the downstream demand is less than the expected risk; Raw material price fluctuation risk.
