\u3000\u3 China Vanke Co.Ltd(000002) 831 Shenzhen Yuto Packaging Technology Co.Ltd(002831) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 14.85 billion yuan, a year-on-year increase of 25.97%; The net profit attributable to the parent company was 1.017 billion yuan, a year-on-year decrease of 9.19%; The basic earnings per share is 1.09 yuan / share. Among them, the company achieved a revenue of 4.795 billion yuan in the fourth quarter, a year-on-year increase of 8.73%; The net profit attributable to the parent company was 350 million yuan, a year-on-year decrease of 24.6%. In 2022q1, the company achieved a revenue of 3.351 billion yuan, a year-on-year increase of 26.02%; The net profit attributable to the parent company was 221 million yuan, a year-on-year increase of 32.68%; The basic earnings per share is 0.24 yuan / share.
The rise in the price of raw materials led to the decline of the company’s gross profit margin. In 2021, the company’s comprehensive gross profit margin was 21.54%, a year-on-year decrease of 5.29%. Among them, the gross profit margin of 21q4 was 21.16%, a year-on-year decrease of 4.04% and a month on month decrease of 1.8%. 22q1 single quarter gross profit margin was 20.81%, down 3.06% year-on-year and 0.35% month on month. The gross profit margin declined in 2021, mainly due to the sharp rise in the price of raw materials and freight. The direct materials for paper packaging and freight of the company’s main products increased by 39.43% and 42.42% respectively, higher than the growth rate of revenue.
Cost control has achieved initial results, and the net interest rate continues to deteriorate. In 2021, the company’s period expense rate was 13.1%, with a year-on-year decrease of 2.48%. Among them, the sales / management / Finance / R & D expense rates were 2.45% / 5.48% / 1.22% / 3.95% respectively, with a year-on-year change of – 0.29% / – 1% / – 0.93% / – 0.27%. In 2022q1, the company’s period expense rate was 12.86%, with a year-on-year decrease of 3.8%. Among them, the sales / management / Finance / R & D expense rates were 2.51% / 5.58% / 0.89% / 3.89% respectively, with a year-on-year change of – 0.86% / – 1.8% / – 0.07% / – 1.08%. In terms of net interest rate, in 2021, the company’s net interest rate was 7.19%, down 2.54% year-on-year. Among them, the company’s net interest rate in 21q4 single quarter was 7.63%, down 3.06% year-on-year and 1.14% month on month; 22q1 single quarter net profit margin of the company was 6.72%, with a year-on-year increase of 0.19% and a month on month decrease of 0.91%.
The diversified layout of packaging business has been improved day by day, and the revenue has achieved steady growth. On the basis of deep cultivation of electronic packaging products, the company actively expands emerging market businesses such as wine bags, cosmetics and big health packaging, and arranges strategic new businesses such as industrial Internet and environmental protection packaging. During the reporting period, the company achieved a revenue of 113.84/25.05/691269 million yuan for paper-based high-quality packaging, packaging supporting, environmental protection paper plastic and other products, with a year-on-year increase of 24.98% / 25.01% / 62.07% / 8.01%.
Digital industrial chain + smart factory, continuously enabling enterprise transformation. In terms of digital industrial chain, the company explored the digital supply chain mode, opened up the whole link from front-end demand to flexible manufacturing, served many brand customers such as Bestore Co.Ltd(603719) , HEMA Xiansheng and pinduoduo, and linked more than 3000 printing and packaging suppliers. The business revenue increased by about 70% in 2021; In terms of smart factory, Xuchang smart factory of the company was completed and put into operation, which fully opened up the business flow from raw material warehouse, post press workshop, semi-finished product warehouse, assembly workshop to finished product warehouse, and helped the company improve quality and efficiency.
Investment suggestion: the company’s 3C business has grown steadily, diversified layout has achieved new development, digital industrial chain and intelligent factory have been continuously enabled, and the future growth is significant. It is expected that the company will achieve basic earnings per share of 1.53/1.93/2.40 yuan / share in 2022 / 23 / 24, corresponding to PE of 16x / 13X / 10x, and maintain the “recommended” rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
