Core ideas:
The company released the 2021 mid-year report, a substantial increase in performance. The company's 21H1 realized revenue of 1.677 billion yuan, an increase of 55.80% over the same period last year, and a net profit of 131 million yuan, an increase of 90.49% over the same period last year.
In a single quarter, the company's 21Q2 achieved revenue of 967 million yuan, an increase of 42.72% over the same period last year, and a net profit of 70 million yuan, an increase of 38.83% over the same period last year.
Q2 the quantity and price of all kinds of tape have increased, and the cost of raw materials has also increased. According to the company's operating data announcement, the revenue of 21Q2 film-based tape, paper-based tape and cloth-based tape reached 458 million yuan, 272 million yuan and 151 million yuan respectively, an increase of 45.5%, 61.7% and 9.1% over the same period last year, while sales increased by 13.7%, 44.5% and-7.2% respectively, and the average sales price increased by 28.9%, 11.9% and 17.4% respectively over the same period last year. In terms of raw materials, the average purchase prices of 21Q2 resin, OPP film, particles, butyl ester, pulp and PVC powder increased by 3.53%, 29.0%, 48.1%, 124.8%, 24.1% and 44.2%, respectively.
Under the circumstances of the sharp rise in raw material prices, exchange rate fluctuations and severe shipping conditions, the company responded actively and kept its profitability stable, with a gross profit margin of 14.11% and a net profit rate of 7.80% in the first half of the year.
Key projects continue to move forward, and there is room for growth. According to the China News, the first phase of Shandong Yongguan new packaging materials and adhesive materials intelligent production project and Jiangxi Yongguan intelligent manufacturing industry upgrading phase I technical renovation project is expected to reach the scheduled state at the beginning of 22nd; the wire harness and medical tape project is expected to be completed in mid-2023; and the BOPP film drawing line 234 is expected to be put into production by the end of 21, the first half of 22 and the second half of 22 respectively. The fourth and fifth lines of the PVC calender line are expected to be put into production in October 21 and the first half of 22 respectively, and the construction of new environmentally degradable materials is expected to start in the second half of the year.
Profit forecast and investment advice. It is estimated that the company's earnings per share in 21-23 years are 1.57 yuan, 2.12 yuan and 2.65 yuan respectively, and the current share price is 18 times, 13 times and 11 times respectively. With reference to the valuation level of the comparable company, taking into account the company's business structure and performance growth, the company's performance in 2021 is valued at 20 times PE, corresponding to a reasonable value of 31.44 yuan per share, maintaining a "buy" rating.
Risk tips. The price of tape products has fallen sharply; downstream demand is in the doldrums; international trade frictions are intensified and exchange rate fluctuations are risk; the progress of projects under construction is lower than expected; major safety and environmental accidents.