\u3000\u3 China Vanke Co.Ltd(000002) 042 Huafu Fashion Co.Ltd(002042) )
In 2021, the revenue was 16.708 billion yuan, with an increase of 17.4%, and the net profit attributable to the parent company was 570 million yuan
In the past 21 years, the company’s revenue was 16.708 billion yuan, a year-on-year increase of 17.4%, mainly due to the continued restorative growth of global clothing consumption in the past 21 years, and the repeated epidemic in South and Southeast Asia caused some overseas orders to return to China. Among them, the total revenue and growth rate of 21q1-4 were 3.845 billion (+ 66.7%), 4.71 billion (+ 44.9%), 4.16 billion (+ 34.1%) and 3.993 billion (- 28.3%) respectively. In 2022q1, the revenue was 4.147 billion yuan, a year-on-year increase of 7.9%.
The net profit attributable to the parent company in 21 years was 570 million yuan, which was mainly due to the upward fluctuation of raw material prices in 21 years, the improvement of the company’s capacity utilization, the improvement of production efficiency through the construction of digital intelligence chemical plant and the increase of product gross profit margin. Among them, the net profit attributable to the parent company and the growth rate of 21q1-4 were 131 million (+ 531.0%), 170 million (+ 207.2%), 144 million (+ 364.9%) and 124 million (+ 162.0%) respectively. The net profit attributable to the parent company in 2022q1 was 150 million yuan, a year-on-year increase of 14.4%.
In 2021, 352 million yuan of net profit not attributable to the parent company will be deducted to reverse the loss. 22q1 deduction of non parent net profit of 132 million yuan, an increase of 126.4% year-on-year, mainly due to the decrease of non recurring profits and losses.
Revenue: the yarn and mesh chain business maintained rapid growth, and the socks business set sail
By product, the yarn business revenue in 2021 was 6.631 billion yuan (accounting for 39.7% of the total), with a year-on-year increase of 16.2%; The network chain business revenue was 9.655 billion yuan (accounting for 57.8% of the total), with a year-on-year increase of 16.3%; The business income of hosiery products was 269 million yuan (1.6% of the total), with a year-on-year increase of 79.9%.
By region, the overseas main business revenue in 2021 was 2.184 billion yuan (accounting for 13.1% of the total), an increase of 68.5% year-on-year; The domestic main business income was 14.413 billion yuan (accounting for 86.3% of the total), with a year-on-year increase of 12.1%; Other income was 111 million yuan (0.7% of the total), with a year-on-year increase of 51.5%.
The profitability rebounded rapidly and the effect of cost control was remarkable
The gross profit margin of the company increased by 8.1 PCT to 9.6% year on year; 22q1 gross profit margin was 10.3%, with a year-on-year increase of 2.7pct. The net interest rate attributable to the parent company increased by 6.5pct to 3.4% year-on-year in 21 years, an increase of 0.9pct compared with 19 years; 22q1 net profit attributable to parent company was 3.6%, with a year-on-year increase of 0.2pct.
In terms of rates, the effect of fee control in the 21st year is remarkable, and the rate of 5.7% (- 0.7pct) continues to decrease during the period. The rates of sales / management / R & D / financial expenses in 21 years were 0.7% (+ 0.1pct), 2.3% (- 0.2pct), 0.8% (- 0.01pct) and 1.9% (- 0.5%) respectively. The increase in sales expenses was mainly due to the increase in service fees of e-commerce platforms. 22q1 company’s sales / management / R & D / financial expense rates are 0.9% (- 0.5pct), 2.2% (- 0.04pct), 0.9% (+ 0.1pct) and 1.9% (+ 0.8pct) respectively.
Adjust the profit forecast and maintain the buy rating. Considering that there is a certain trend of transfer of orders in the industry to Southeast Asia, and considering the steady growth of the company’s yarn and network chain business, the good trend of socks business, digital intelligence or driving the improvement of profitability, we expect the company’s EPS to be 0.35, 0.39 and 0.43 yuan / share in 202224 (the original value in 22-23 is 0.39 and 0.45 yuan / share), and PE to be 9.98, 9.04 and 8.19 times respectively.
Risk tip: raw material price fluctuation, RMB exchange rate fluctuation, repeated epidemic, international political game brings order fluctuation, RMB exchange rate fluctuation and other risks.
