\u3000\u3 China Vanke Co.Ltd(000002) 014 Huangshan Novel Co.Ltd(002014) )
Event: Huangshan Novel Co.Ltd(002014) released the annual report of 2021 and the first quarter report of 2022. In 2021, the company realized an operating revenue of 3.024 billion yuan, a year-on-year increase of 10.45%; The net profit attributable to the parent company was 316 million yuan, a year-on-year increase of 4.25%; The net profit attributable to the parent company after deduction was 280 million yuan, a year-on-year increase of 1.43%. In 2021q4, the company realized an operating revenue of 889 million yuan, a year-on-year increase of 11.94%; The net profit attributable to the parent company was 102 million yuan, a year-on-year increase of 17.87%; The net profit attributable to the parent company after deducting non profits was 78 million yuan, with a year-on-year increase of 9.56%. The profit distribution plan of the company in 2021 is to increase 2 shares for every 10 shares and distribute a cash dividend of 5 yuan (including tax), corresponding to the latest dividend rate of more than 8%.
In addition, in 2022q1, the company achieved an operating revenue of 724 million yuan, a year-on-year increase of 0.13%; The net profit attributable to the parent company was 65 million yuan, a year-on-year increase of 6.93%; The net profit attributable to the parent company after deduction was 61 million yuan, with a year-on-year increase of 4.94%.
Color printing packaging drives the steady growth of performance and overweight the layout of film
In the past 21 years, the company actively adjusted the product structure, actively expanded new markets, continued to develop e-commerce platform customers, continued to break through the business covering flexible packaging, film materials, ink and other businesses in overseas markets, and actively expanded new businesses, including cheese packaging, special film and so on. By category, in 2021, the revenue of color printing packaging materials, aluminized packaging materials, plastic flexible packaging film, ink and other businesses reached RMB 2.312/0.56/4.07/1.43/106 billion respectively, with a year-on-year increase of + 988 / - 10.46 / + 10.13 / + 15.25 / + 36.97%. Color printing packaging materials are the company's core products, with a sales volume of 931 million tons in 21 years, a year-on-year increase of 7.63%. In the 21st year, Guangzhou Yongxin color printing composite flexible packaging material project with an annual output of 4000 tons was completed and put into operation, which is expected to continue to drive the performance growth of the company. At the same time, the company actively planned the industrial layout and increased the investment in the film industry. In the 21st year, the production capacity of Huangshan packaging 4000 tons of flexographic solvent-free composite flexible packaging materials continued to be promoted. Among them, the construction of the new multi-functional film project has been completed and the installation and commissioning has been started. The production capacity of Yongxin new material 33000 tons of new BOPE thin film is expected to be installed and commissioned in the middle of 2022. The new production capacity is expected to drive the continuous growth of performance. In terms of sub regions, the domestic sales revenue reached 2.734 billion yuan in 2021, a year-on-year increase of 9.00%; The income from export sales was 290 million yuan, a year-on-year increase of 26.39%.
The rise of raw materials has put pressure on profits, and the performance has increased steadily
In terms of profitability, the company's comprehensive gross profit margin in 21 years was 22.24%, down 2.12pct year-on-year, mainly due to the sharp rise in the price of raw materials due to the high price of crude oil and the dual control policy of energy consumption; In 2022q1, the company's comprehensive gross profit margin was 20.77%, down 0.44pct year-on-year. The cost side of the company was well controlled. During the 21 years, the cost rate was 10.44%, with a year-on-year decrease of 1.12pct, and the cost rates of sales / management / R & D / finance were 1.81/4.78/4.01 / - 0.15% respectively, with a year-on-year decrease of -0.51 / - 0.16 / - 0.11 / - 0.34pct respectively. During 2022q1, the expense rate of the company was 10.18%, a year-on-year decrease of 0.85pct. Under the comprehensive influence, the net interest rate of the company in 21 years was 10.45%, a year-on-year decrease of 0.62pct. The net interest rate of 2022q1 company was 9.00%, with a year-on-year increase of 0.57pct. In terms of cash flow, the company achieved net operating cash flow of 296 million yuan in 21 years, with a year-on-year decrease of 46.00%, mainly due to the weak downstream demand affecting customers' payment ability, the increase of accounts receivable, notes receivable and inventory.
Investment suggestion: as the leader of plastic soft bags in China, the company has accumulated technical and management advantages and customer resources, steadily promoted capacity expansion, and is expected to benefit from industry upgrading and pattern optimization for a long time. We estimate that the operating revenue of Huangshan Novel Co.Ltd(002014) 2022-2024 will be RMB 3.342 billion, RMB 3.711 billion and RMB 4.102 billion, with a year-on-year increase of 10.53%, 11.04% and 10.54%; The net profit attributable to the parent company was 401 million yuan, 452 million yuan and 503 million yuan, with a year-on-year increase of 26.78%, 12.90% and 11.15%. The corresponding PE was 9.4x, 8.3x and 7.5x, giving a Buy-A investment rating.
Risk warning: crude oil price fluctuation risk; Risk of disturbance of epidemic situation and sluggish demand; Industry competition intensifies risks, etc.
