\u3000\u3 Shengda Resources Co.Ltd(000603) 558 Zhejiang Jasan Holding Group Co.Ltd(603558) )
In 2021, the business developed steadily, and the performance of "cotton socks + seamless" two wheel drive was upward. In 2021, the company achieved a revenue of RMB 2.052 billion, a year-on-year increase of 29.65%; The net profit was 6.7 billion yuan. In the fourth quarter alone, the company achieved a revenue of 530 million, a year-on-year increase of 22.8%, and the net profit attributable to the parent company was - 13.9 million, mainly due to the short-term shutdown caused by the epidemic in the fourth quarter of 2021. At the same time, the company confirmed the equity incentive fee, the impairment of factory goodwill and paid some employee subsidies in that quarter.
Cotton socks sector: shipments increased significantly and production capacity accelerated. In 2021, the Qinghua plant of the company's Vietnam coastal defense base expanded its production significantly. The shipment of cotton socks in Vietnam reached 210 million pairs (YoY + 35%), and the shipment of cotton socks in Jiangshan base exceeded 160 million pairs (YoY + 33%). In 2021, the company newly established Guizhou Jiansheng sportswear Co., Ltd. and planned to add 1000 hosiery machines. By the end of 2021, the supporting construction of the project has been completed, and 440 hosiery machines configured in the first phase have been put into operation in the third quarter.
Seamless sector: the startup rate increased to 70%, and the Vietnamese factory entered the production capacity release period. In 2021, the company significantly expanded the production capacity of Guizhou peak, increased the number of seamless knitting machines from 173 to 309, and the number of personnel also increased significantly. At the same time, the company took the initiative to reduce its dependence on a single customer, and the customers of Guizhou factory have changed from a single customer to multiple customers. Vietnam's seamless factory was gradually put into operation in 2021. At present, it has been out of the influence of factors such as insufficient orders and epidemic situation. At present, the startup rate has reached more than 70%, and large-scale mass production has been gradually realized. At present, the management and production staff team of Vietnam seamless factory has been integrated, and it is expected to undertake the demand for new orders brought by overseas recovery, so as to improve the gross profit margin of the company's seamless products.
We will strengthen the integrated layout of the industrial chain and steadily improve the sustainability of development. In 2021, the company built a new project with an annual output of 2000 tons of spandex, rubber band and coated yarn in Guizhou, providing industrial chain support for the production of seamless clothing and cotton socks, and realizing the extension of the industrial chain in the seamless sector. At the same time, the production scale of auxiliary materials in Jiangshan base and Vietnam base continues to increase, the scale and capacity of dyeing factories outside China have been strengthened, and the printing and dyeing capacity has basically covered the needs of the company's production and operation.
2022q1 revenue performance meets expectations, and the head customer orders may continue to increase. Q1 company achieved an operating revenue of 532 million yuan, a year-on-year increase of 28.54%; The net profit attributable to the parent company was 82 million yuan, a year-on-year increase of 74.1%; Deduct non net profit of 66.458 million yuan, with a year-on-year increase of 40.73%. Non recurring profits and losses are mainly government subsidies; Split to monthly. From January to February 2022, the company's operating revenue was about 355 million yuan, a year-on-year increase of 38%; The net profit attributable to the parent company was about 48 million yuan, a year-on-year increase of 136.69%. The revenue in March alone was 177 million yuan, and the net profit attributable to the parent company was about 34 million yuan. At the beginning of 2022, the epidemic control in Vietnam has been gradually stabilized, and the company's production increase plan is expected to accelerate the implementation. With the recovery of overseas demand, we believe that the company's key customers may increase the single quantity, and the company's business is expected to further develop in 2022.
Investment suggestion: with the blessing of the wave of outdoor sports and fitness, as a leading OEM enterprise in the field of sportswear, the company can benefit from the blowout of demand side after the epidemic, the cost dividend released by capacity expansion, the increase of product terminal retail price and the in-depth development of international customer cooperation. Therefore, we predict that the company's operating revenue will reach 2.453/2.926/3.387 billion yuan from 2022 to 2024, with a year-on-year increase of 19.6% / 19.3% / 15.8%; The net profit attributable to the parent company reached 292 / 375 / 463 million yuan, with a year-on-year increase of 74.6% / 28.6% / 23.2%. The current market value of the company corresponds to the PE of 15x / 11x / 9x in 2022 / 2023 / 2024, which is lower than that of Companies in the same industry. For the first coverage, give a "recommended" rating.
Risk tip: the demand for sportswear is weak; The epidemic repeatedly affected production
