2021H1's homing net profit increased by 36.5% to 249 million yuan compared with the same period last year. The company's 2021H1 revenue increased by 38.5% year-on-year to 4.678 billion yuan, net profit increased by 36.52% to 249 million yuan, and earnings per share increased by 40.9% to 0.244 yuan. From the perspective of segment income, tinplate packaging / aluminum packaging / plastic packaging increased by 35.37%, 44.77% and 21.8% respectively over the same period last year to 22.51, 21.41, and 286 million yuan respectively. In aluminum packaging, the income of two cans was 2.105 billion yuan, an increase of 45.7% over the same period last year, accounting for about 45% of the total revenue. The downstream beer industry of aluminum packaging promoted high-end upgrading, and the canning rate continued to increase steadily. In tinplate packaging, steel buckets / milk powder cans / aerosol cans / metal lids recorded revenue of 6.69 million yuan, respectively, up 67.3%, 6.9%, 51.3%, 11.9%, respectively, and accounted for 14.3%, 7.6%, 7.3%, 6.2%, respectively, of the total revenue. Among them, the performance of steel bucket business was outstanding, mainly due to the boom in the downstream chemical industry. The plastic packaging revenue was 286 million yuan, an increase of 21.8% over the same period last year, accounting for about 6.1% of the total revenue. During the period, the company actively promoted new products and new customers, and signed a strategic cooperation agreement with the leading company Blue Moon in the plastic packaging business.
The upstream price increase will affect the gross profit margin to some extent, but in the long run, the increase in industry concentration will lead to an increase in profitability.
The company's 2021H1 gross profit margin and net profit margin were 14.14% and 5.51%, respectively, compared with the same period last year-2.17pct/+0.09pct, and the company's sales / administrative expenses / financial expense rates were 4.2%, 4.1% and 0.64%, respectively, compared with the same period last year-0.01pct/-0.49pct/-0.84pct. Over the past year, the LME aluminum, LME tin and steel commodity price index CCPI has risen 33%, 56.4% and 20.5% respectively. The rise in upstream raw materials has a certain impact on gross profit margin, but due to good cost control, the overall net profit margin has increased compared with the same period last year. We believe that there is no need to worry too much about the rise of raw materials. First of all, industries such as beer downstream of the company are actively promoting high-end upgrading and need to frequently introduce new products to replace packaging in order to achieve price increases, so packaging enterprises can take the opportunity to ease the problem of rising prices of raw materials. At the same time, the adverse environment is also accelerating the clearing process of small enterprises. In the long run, the optimization of the competitive pattern is conducive to the improvement of the company's profitability.
Two cans, steel drums and other subdivided business capacity have been released one after another. Aluminum packaging has the advantages of a high degree of production automation and complete recycling. At the same time, due to policies such as plastic ban and glass bottle recycling restrictions, the canning rate continues to rise. Taking beer as an example, the beer canning rate in China is about 23-25%. Compared with Europe and the United States (50%) and Japan (60%), there is still much room for improvement. The company complies with the trend and continues to distribute new production capacity. Tianjin second line and Wuhan second line have been trial production in the first half of the year. The third line of Chengdu will be launched in the second half of the year, and the operation of the Belgian project continues to improve.
The demand for steel drum business benefited from the high prosperity of the downstream petrochemical industry. The new production capacity of Yantai, the joint venture between the company and Wanhua Chemical, a key customer, was quickly released by 2021H1, and the Fujian joint venture company also advanced steadily and orderly.
Risk hint: the price of raw materials has risen sharply, and the release of production capacity is not as expected.