The company released its mid-2021 report. The company's 2021H1 realized operating income of 429 million yuan, an increase of 31.45% over the same period last year, and a net profit of 59 million yuan, an increase of 24.36% over the same period last year.
21H1 achieved high revenue and profit growth. In terms of products, the company's soft packaging (including cold stamping composite hard sheet, SP aluminum foil, PTP composite film, raw material medicine bag) and hard packaging (PVC, PVC/PVDC, PVC/ polytrifluoroethylene, plastic bottles, aluminum-plastic composite cover) achieved revenue of 310 million yuan and 115 million yuan, respectively, an increase of 36.21% and 42.71% over the same period last year. From a regional point of view, the company's domestic and foreign revenues were 403 million yuan and 26 million yuan respectively, an increase of 36.00% over the same period last year and a decrease of 13.53% over the same period last year. In terms of gross profit margin, the company's soft packaging and hard packaging decreased 3.83pcts and 1.41pcts by 30.91% and 24.60% respectively, mainly due to the rise in raw material prices. The average three-month LME aluminum futures official price during the 2020H1 period was $1622.31 / ton, and the average 2021H1 was $2256.27 / ton, an increase of 39.08% over the same period last year. As of August 24, 2021, the official price of LME aluminum futures for three months was US $2627 / ton, which remained at a high level.
The cost side is well controlled, and the expense rate during the 21H1 period decreased 5.04pcts compared with the same period last year. The 2021H1 sales expense rate, management expense rate and financial expense rate were 4.29%, 6.1% and 0.47% respectively, which decreased 2.44pcts, 1.08pcts and 1.52pcts respectively compared with the same period last year. The decrease in the financial expense rate was mainly due to the decrease in interest expenses and exchange gains and losses. The rate of 2021H1 R & D expenditure was 3.58%, which remained stable, with an increase of 0.05pcts over the same period last year.
The advantage of customer barrier is obvious, and we have established a cooperative relationship with 80% of China's top 100 pharmaceutical companies. At present, the company has more than 2000 customers, such as AstraZeneca PLC, Novartis AG, Huahai Pharmaceutical and Yangzijiang Pharmaceutical, and has established cooperative relations with 80% of China's top 100 pharmaceutical enterprises. The company continues to tap the potential of existing customers to enhance single product increment and multi-category import.
In addition, under the current "related review" system, domestic pharmaceutical companies need to do computer test, compatibility and stability test, on-site audit, report to provincial drug administration or drug examination center for examination and approval, etc., and the certification time is about 9-12 months. the evaluation cycle is long, the evaluation cost is high, the cost of changing suppliers is high, and there are high customer barriers.
21H1 has issued 355 authorization letters, which may further increase its market share. The company 21H1 issued 355 authorization letters to downstream pharmaceutical companies for conformance evaluation or new drug development declaration, storing a large number of projects. In the past three and a half years, the company has issued more than 3000 authorization letters for customer consistency evaluation or new drug declaration. As of June 30, 2021, the company has 115 drug package registration numbers issued by the National Drug Review Center and 11 DMF record numbers issued by FDA in the United States, which is the most complete range of solid drug packaging companies in China. In addition, correlation review promotes the improvement of pharmaceutical packaging quality requirements, and the improvement of industry concentration is expected to accelerate.
The use of existing core technology to expand new consumption, new energy fields, research and development of lithium aluminum plastic film. By using multi-layer co-extrusion high barrier technology, precision coating technology and composite cold forming technology, the company has developed new products such as high barrier and easy-to-peel thermoplastic sheet and corrosion-resistant lithium battery aluminum-plastic film, which are used in new consumption, new energy and other fields. to provide a new driving force for the company's sustainable development.
Profit forecast and rating: as the leader of the medicine bag, the company takes cold stamping composite hard film products as the core, and continues to expand its application scenarios in new consumption, new energy, electronic protection and other emerging fields. The founder and core team of the company have a professional degree background and have been focused on the field of pharmaceutical high barrier packaging for 20 years with rich experience in the industry. We estimate that the company's net profit in 2023 will be about RMB 151,190 million for 2023, corresponding to a "buy" rating for PE of 21max, 16max, 13X respectively.
Risk tips: fund-raising projects do not meet expectations after production expansion, industry policy adjustment, the impact of the macro epidemic.