Introduction to this report:
Higher raw material prices and overseas freight charges have clearly put pressure on gross margins. Production capacity is released in an orderly manner, delivery capacity has increased, and the revenue scale of various categories that are easy to open has continued to rise; research and development of new products for alienation has been strengthened, and internal and external expansion has accelerated industry integration.
Key points of investment:
The target price was lowered to 8.94 yuan to maintain the increase in holdings rating. The company stepped up research and development of differentiated new products, and metal raw materials and overseas transportation costs increased significantly, maintaining EPS of 0.32/0.40/0.49 yuan from 2021 to 2023. The competitiveness of all categories of the company's products has been strengthened, and new production capacity has been released in an orderly manner, and delivery capacity has been increased. PE was granted about 27 times that of 2021, and the target price was lowered to 8.94 yuan to maintain the increase in holdings rating.
The performance was generally in line with expectations, and gross margin was clearly under pressure due to rising raw material prices and overseas freight charges.
2021H1 achieved revenue of 846 million yuan, an increase of 62.26% over the same period, and gross sales profit of 125 million yuan, which was basically the same as the previous year, maintaining stable production and operation. Due to increased investment in research and development of new products and the expansion of sales scale and the increase in preparation for bad debts, it achieved net profit of 32.724 million yuan, a decrease of 29.98% from the same period last year.
As prices of raw materials aluminum and tinplate continued to rise rapidly in the first half of the year, the overall gross margin fell 8.46 pct to 14.78% year-on-year due to extended transportation cycles on overseas routes and a sharp rise in freight costs.
Production capacity is being released in an orderly manner, and delivery capacity has increased, and the revenue scale of various categories that are easy to open continues to increase. The company's newly expanded production capacity was gradually released. Revenue from dry powder/canned/beverage and other products increased by 34.38%, 41.38%, 124.06% and 65.77% in the first half of the year. Affected by sharp increases in raw materials and freight costs, the gross margin of various categories declined to varying degrees. Among them, the gross margin of easy to open beverage covers fell 9.04pct to 1.70% year-on-year, and the gross margin of dry powder and cans was 22.23% (-5.56pct) and 26.99% (-6.35%).
Research and development of new products for alienation has been strengthened, and internal repairs and external expansion have accelerated industry integration. With the maturity of the production process and supporting supply system, Easy Tear has rapidly expanded from the field of milk powder to snack food and other fields. Fortunately, the company's product specifications, fortunately, are becoming more and more perfect, and differentiated new product development efforts have been strengthened. Industry integration has been accelerated through built-in production capacity and external mergers and acquisitions, and has enjoyed global demand market space.
Risk warning: risk of fluctuations in raw material prices, risk of mergers and acquisitions, risk of fluctuations in overseas demand