\u3000\u30 Zhongyan Technology Co.Ltd(003001) 32 Fujian Green Pine Co.Ltd(300132) )
Key points
The revenue of the company in the 21st year decreased by 4% year-on-year, and the net profit attributable to the parent company turned into a loss. The revenue of 22q1 decreased by 20%. The company’s operating revenue in the 21st year was 3.693 billion yuan, a year-on-year decrease of 4.44%. The net profit attributable to the parent company was -912 million yuan, a year-on-year loss, lower than expected. Deduct the non net profit of -915 million yuan, a year-on-year loss, and EPS was -176 yuan. The net profit loss was large, mainly due to the decline of gross profit margin and the provision for impairment of northbell’s large goodwill of RMB 913 million.
Quarterly, the revenue of 21q1 ~ 22q1 was + 20.69%, – 2.85%, – 21.29%, – 7.48%, – 19.67% respectively year-on-year, and the net profit attributable to the parent company was + 8.77%, – 37.07% respectively year-on-year in 21q1 / Q2, and there was a loss in 21q3 ~ 22q1.
The revenue of cosmetics business and turpentine deep processing business in 21 years was – 6% and – 1% respectively year-on-year
In terms of business: in 21 years, the revenue of cosmetics manufacturing business (northbell) and turpentine deep processing business accounted for 68% and 32% respectively, and the revenue was – 6.03% and – 0.87% year-on-year respectively. Among them, northbell achieved an operating profit of – 66.32 million yuan and a net profit attributable to the parent company of – 54.9 million yuan, with great performance pressure, mainly due to the increase of depreciation and amortization and rent caused by the operation of the new production line, the sharp increase of labor costs caused by the large number of enrollment expansion in the early stage, the less than expected orders received by the industry and the company caused by macro factors, the rise of raw material prices, the decline of mask business income, etc; Turpentine business achieved an operating profit of 81.8 million yuan in 21 years, a year-on-year decrease of 66.51%, mainly affected by the rise of raw material prices.
In terms of products, the main products of cosmetics business in 21 years, facial mask, skin care, wet wipes and other (mainly mask) series accounted for 28%, 20%, 16% and 5% of the total revenue respectively, and the revenue was +3.37%, +10.36%, -10.89% and-53.14% respectively year-on-year; The main products of turpentine processing business are synthetic camphor and borneol series, accounting for 26% and 3% of the total revenue, with a year-on-year revenue of + 7.93% and – 21.74%.
In the 21st year, the gross profit margin decreased, the expense rate was stable, the inventory turnover was flat, and the cash flow decreased
The gross profit margin decreased by 12.67pct to 13.01% year-on-year in 21 years. In terms of business, the gross profit margins of cosmetics business and turpentine business are 10.44% (-11.91pct) and 18.45% (-14.64pct) respectively. In terms of products, the gross profit margin of facial mask, skin care, wet wipes and synthetic camphor series are 11.71% (-11.89pct), 7.66% (-12.32pct), 9.45% (-11.48pct) and 18.64% (-14.09pct) respectively. 22q1 gross profit margin decreased by 18.97pct to 5.29% year-on-year.
During the period, the expense rate increased by 0.40pct to 11.28% year-on-year in 21 years, of which the expense rates of sales, management, R & D and finance were 1.60% (+ 0.26pct), 5.01% (+ 0.07pct), 3.36% (+ 0.16pct) and 1.31% (-0.08pct) respectively. During 22q1, the expense rate increased by 4.21pct to 15.30% year-on-year, of which the expense rates of sales, management, R & D and finance were -0.01, + 1.96, + 1.08 and + 1.18pct year-on-year respectively.
The net operating cash flow decreased by 94.25% to 44.2 million yuan year-on-year in 21 years, mainly due to the increase in the purchase of raw materials in 21 years, the decrease in cash received from the sale of goods, and the year-on-year increase in the number of employees and salaries; 22q1 decreased by 3.54% year-on-year.
Profit forecast and investment suggestions: in 21 years, the company’s cosmetics business performance was under pressure from the macro impact of rising raw material prices, industry supervision and epidemic situation. In the long run, the company’s leading position in cosmetics manufacturing will not change. In 22 years, the company will strengthen fine management and give priority to benefits. Considering that there is still uncertainty in the business environment in 22 years, we lowered the company’s profit forecast for 22-23 years (net profit decreased by 74% / 60% respectively compared with the previous profit forecast), corresponding to EPS of 0.31 and 0.58 yuan for 22-23 years, new 24-year profit forecast and EPS of 0.69 yuan for 24 years, PE of 19 and 10 times for 22 and 23 years respectively, and lowered it to the “overweight” rating.
Risk warning: the order receiving or production capacity of cosmetics manufacturing business is less than expected; The cost of raw materials has risen sharply; Turpentine processing business fluctuated.
