\u3000\u3 China Vanke Co.Ltd(000002) 810 Shandong Head Co.Ltd(002810) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022. The company achieved an operating revenue of 1.56 billion yuan in 2021, with a year-on-year increase of 19.22% (after adjustment, the same below); The net profit attributable to the parent company was 330 million yuan, a year-on-year increase of 30.65%; The company realized an operating revenue of 392 million yuan in 2022q1, with a year-on-year increase of 19.05%; The net profit attributable to the parent company was 963334 million yuan, a year-on-year increase of 20.66%.
Comments:
High performance growth driven by large amount of plant capsules
In 2021, the company sold 35000 tons of cellulose ether, with a gross profit margin of 32.28%. The sales volume and gross profit margin were the same year-on-year. The increase of average price led to a year-on-year increase of 8% to 976 million yuan; The sales volume of plant capsules reached 14.15 billion, a year-on-year increase of 58%, and the average superimposed price increased by 3%, driving the revenue of the sector to increase by 62% to 317 million yuan, with a gross profit margin of 63.69%, a year-on-year increase of 0.81 PCT, a gross profit of 202 million yuan, and the proportion of gross profit of plant capsules to 35%, which promoted the high growth of the company’s overall performance. 22q1 plant capsule further increased its volume, and its performance hit a record high in the first quarter.
The main products continue to expand production, and the company’s performance is expected to continue to rise to a higher level
By the end of 2021, the company has a cellulose ether production capacity of 34000 tons / year, a capacity under construction of 41000 tons / year, a plant capsule production capacity of 27.7 billion pieces / year, and a capacity under construction of 7.3 billion pieces / year. The company disclosed the convertible bond plan with the annual report, and plans to raise 600 million yuan to invest in the construction of 30000 tons / year cellulose ether and 15 billion pieces of plant capsule projects. With the continuous expansion of the projects under construction, especially the plant capsule project with high gross profit, The company’s performance is expected to continue to rise.
Earnings forecast, valuation and rating
We expect that the company’s revenue from 2022 to 2024 will be 2.448 billion yuan, 3.167 billion yuan and 3.651 billion yuan respectively, the net profit attributable to the parent company will be 524 million yuan, 711 million yuan and 848 million yuan respectively, the EPS will be 153 million yuan, 207 million yuan and 2.48 yuan respectively, and the current share price corresponding to PE will be 23x, 17x and 14x respectively. Considering the continuous expansion and thickening performance of the company’s high gross profit variety plant capsule, we give a “buy” rating.
Risk tips
The expansion of plant capsule production was less than expected; The export of products is affected by the international trade situation and the RMB exchange rate.
