\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 062 Shanghai Ailu Package Co.Ltd(301062) )
Event: the company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 271 million yuan, a year-on-year increase of 12.32%; The net profit attributable to the parent company was 32 million yuan, a year-on-year decrease of 25.7%; The basic earnings per share is 0.08 yuan / share.
Profitability improved significantly month on month and is expected to continue to repair. In the first quarter of 2022, the company's comprehensive gross profit margin was 26.78%, a year-on-year decrease of 5.87% and a month on month increase of 8.32%. The gross profit margin changed significantly compared with the previous period, mainly because: during the reporting period, the price of raw materials of the company's products fluctuated sharply, which affected the company's procurement cost, resulting in the change of the gross profit margin of products. During the period, the expense rate of the company was 14.93%, with a year-on-year increase of 1.87% and a month on month increase of 7.97%. Among them, the sales expense rate was 2.25%, with a year-on-year increase of 0.56%; The management expense ratio was 7.77%, with a year-on-year increase of 0.94%; The financial expense ratio was 1.26%, a year-on-year decrease of 0.1%; The R & D expense ratio was 3.65%, with a year-on-year increase of 0.47%. During the reporting period, due to the decline of gross profit margin, the company's net profit margin was 11.6%, a year-on-year decrease of 6.12% and a month on month increase of 2.92%.
The cheese industry continues to develop, and the company binds Shanghai Milkground Food Tech Co.Ltd(600882) to achieve common growth. According to Euromonitor data, the market scale of China's cheese industry reached 12.273 billion yuan in 2021, with a year-on-year increase of 22.95%. With the continuous improvement of penetration rate and per capita cheese consumption, the cheese industry will expand steadily, continue to grow with 14.65% CAGR in the next five years, and reach 24.313 billion yuan in 2026. The company is deeply bound with Shanghai Milkground Food Tech Co.Ltd(600882) the leader of cheese industry Shanghai Milkground Food Tech Co.Ltd(600882) while the low-temperature cheese stick products continue to grow, the normal temperature cheese stick products are launched to break through the low-temperature limit, achieve channel sinking, meet diversified needs, and are expected to grow rapidly. As the core supplier of Shanghai Milkground Food Tech Co.Ltd(600882) packaging materials, the company is expected to fully benefit from its business expansion.
Investment suggestion: the company is a leader in China's packaging industry. Industrial paper packaging has developed steadily. Composite plastic packaging is bound to be the leading enterprise in the cheese industry. It is expected to maintain high growth in the future. It is expected that the company will achieve basic earnings per share of 0.56/0.74/0.94 yuan / share in 2022 / 23 / 24, and the corresponding PE is 17x / 13X / 10x, maintaining the "recommended" rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
