\u3000\u3 Ping An Bank Co.Ltd(000001) 212 Sinostone(Guangdong) Co.Ltd(001212) )
Investment summary
Event overview
On April 26, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 725 million yuan, a year-on-year increase of 30.59%, and a net profit attributable to the parent company of 141 million yuan, a year-on-year increase of 3.44%. The construction of production line has been steadily promoted, and the production capacity of Gaoming No. 2 plant has been gradually released. The progress of Zhongqi (Hubei) new materials phase I construction project has reached 29.71%, and the expected income after completion is 104 million yuan; The progress of phase II expansion project of Gaoming No. 2 plant has reached 56.54%, and the expected income after completion is 23.745 million yuan. The production capacity of Gaoming No.2 plant was gradually released and the overall production increased. In 2021, the sector production was 2.5365 million square meters, with a year-on-year increase of 34.73%, and the table production was 59000 linear meters, with a year-on-year increase of 29.26%.
The increase in the purchase price of the main raw material "resin" affects the profit. In 2021, the material cost of the company was 319 million yuan, with a year-on-year increase of 7.95%, accounting for 62.29% of the operating cost and 7.94 PCT higher than that in 2020. Among them, the material cost of sector business was 248 million yuan, a year-on-year increase of 6.86%, and the material cost of table business was 700805 million yuan, a year-on-year increase of 1.04%.
Downstream bound customized home enterprises, with the sales of the top five customers accounting for about 36%. At present, the company's sales mode is mainly direct sales, and the downstream customers are mainly customized home enterprises, artificial quartz brands, etc. In 2021, the total sales amount of the company's top five customers was 258 million yuan, accounting for 35.65% of the total annual sales.
Investment advice
As a manufacturer of artificial quartz stone, the company attaches importance to optimizing product matrix, improving channel sales and improving operation and management level. We estimate that the company's operating revenue from 2022 to 2024 will be RMB 886 / 1088 / 1184 million, with a year-on-year increase of 22.3% / 13.7% / 17.5%; The net profit attributable to the parent company was 160 / 196 / 233 million yuan respectively, with a year-on-year increase of 13.3% / 22.3% / 18.9%, and EPS was 1.76/2.16/2.57 yuan / share respectively. Corresponding to the stock price on April 28, the valuation was 13X / 10x / 9x respectively, maintaining the "buy" rating.
Risk tips
Price fluctuation risk of raw materials; Market competition intensifies risks; Real estate market fluctuation risk.
