The company publishes three quarterly reports for 2021. In the first three quarters of 21, the company achieved revenue of 2.65 billion yuan, an increase of 52.57% over the same period last year, and a net profit of 194 million yuan, an increase of 40.24% over the same period last year. In a single quarter, the company's 21Q3 achieved revenue of 973 million yuan, an increase of 47.31% over the same period last year, a net profit of 64 million yuan, a decrease of 9.06% over the same period last year, and a deduction of 55 million yuan for non-return net profit, an increase of 42.88% over the same period last year.
The volume and price of Q3 film-based tape and paper-based tape have gone up, and the cost of raw materials has also increased. According to the company's operating data announcement, the revenue of 21Q3 film-based tape, paper-based tape and cloth-based tape reached 507 million yuan, 253 million yuan and 119 million yuan respectively, with year-on-year growth rates of 67.6%, 43.5% and-6.8%, respectively, sales growth of 11.0%, 42.8% and-4.8% respectively, and year-on-year changes in average sales prices of 51.9%, 0.7% and-22.1%, respectively. In terms of raw materials, the average purchase price of 21Q3 OPP film, particles, butyl ester, pulp and PVC powder increased by 18.4%, 24.7%, 138.2%, 34.1% and 40.7%, respectively. In the case of the sharp rise in raw material prices and the severe shipping situation, the company responded actively and its profitability was relatively stable, with an overall gross profit margin of 14.04% and a net profit rate of 7.34% in the first three quarters.
The development of high-end tape market is expected in the future. The company previously issued a convertible bond plan to raise funds for the construction of Jiangxi Liankuan functional plastic film material production and research integration project, Jiangxi Yongguan intelligent three-dimensional storage project, global marketing channel construction project and so on. The company will focus on consumer electronic adhesive materials, functional protective film, OCA optical adhesive film, automotive adhesive new materials and other functional adhesive film materials. The market space of high-end tape is large, the added value is high, and the development prospect of the company is promising.
Profit forecast and investment advice. It is estimated that the company's earnings per share in 21-23 years are 1.40 yuan, 1.98 yuan and 2.46 yuan respectively, and the current share price is 23 times, 16 times and 13 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 2022 is valued at 20 times PE, corresponding to a reasonable value of 39.67 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.