21Q2 revenue / return net profit year-on-year + 6.6% Mercer 44.7%, maintain "Buy" rating on August 25 the company released 21 mid-year report: 21H1 revenue / return net profit 1.06 billion yuan, year-on-year + 22.4% Acme 16.3% acme 21Q2 revenue / return net profit 600.4 million yuan, year-on-year + 6.6% Universe 44.7%.
In addition, the company plans to pay 2 yuan (including tax) for every 10 shares, accounting for 89% of 21H1's net profit.
The national layout of the company's production capacity has been further deepened, but we believe that due to the impact of the increase in the price of raw materials, the company's performance has been under great pressure. We have lowered the company's 21-23 year net profit forecast to 2.18x269pm 333 million yuan (the previous value is 274pm 347pm 439 million yuan). The current comparable company's 21-year Wind consensus expectation average 17xPE, considering that the company's anti-risk ability is stronger than the comparable company after the fixed additional financing, we approve to give the company 21-year 22xPE, with a target price of 13.37 yuan (the previous value under the latest equity is 13.77 yuan) to maintain the "buy" rating.
21H1 pipe revenue has grown steadily, and the rise in the price of raw materials has dragged down the gross profit margin. According to the report, the company has a pipe production capacity of 410000 tons, which is the same as the disclosed value of the annual report. 21H1's PVC/PPR/PE pipe fittings realized revenue of 8.1 billion yuan, 11.1 billion yuan, 10.7%, 47.5%, respectively, and gross profit margins were 19.2%, 33.2%, 14.0%, 14.0%, respectively, compared with the same period last year. Excluding the impact of freight charges, the gross profit margin of PVC and PE pipes is expected to narrow. 21H1's overall gross profit margin is 19.9%. Considering the same caliber of freight and market service charges, the year-on-year rate of-4.4 pctscape 21Q2 is 18.1%, month-on-month-4.0pct, mainly due to the sharp increase in the price of raw materials.
The expense rate remained stable during the 21H1 period, and the operating cash flow negative 21H1 company expense rate was 9.6%, year-on-year + 0.2pct, mainly due to the increase in financial expenses caused by the substantial decrease in interest income. The sales / management / R & D / financial expense rate was 2.8%, 3.2% and 3.2%, 0.1%, and + 0.1/-0.2/+0.1/+0.2pct (the sales expense rate is the same caliber). 21H1's parent net profit rate is 7.5%, compared with 6.1% for-3.5pctten 21Q2 and-5.7pct/ month-on-3.2pct, mainly due to the decline in gross profit margin. The interest-bearing debt ratio / asset-liability ratio of 21H1 is 2.6%, 15.4%, year-on-year + 0.7/-6.5pct, mainly due to an increase of 31.5% to 2.73 billion yuan in the company's total assets. The net operating cash flow of 21H1 Company was-50 million yuan, a decrease of 120 million yuan compared with the same period last year, mainly due to the increase in procurement expenditure caused by a large increase in the purchase price of raw materials.
The expansion of production capacity has been increased, and the layout of the whole country has continued.
According to the China News, the Yunnan base with an annual production capacity of 70,000 tons of PCV/PPR/PE pipe, which the company is determined to raise funds for construction, is in good condition and is expected to be put into production by the end of 2021; in addition, the company announced on July 19 that it intends to invest not less than 400 million yuan to build new environmental protection polymer materials and new municipal pipeline projects in Foshan, continuously adding environmental protection polymer pipes. We believe that the company's capacity is expected to continue to expand, and the national layout is further improved, is expected to improve customer service capacity and reduce freight.
Risk tips: the price of raw materials has risen sharply; the new production capacity cannot be digested in time; and the competition in the industry has intensified.
