Event: the company achieved revenue of 9.529 billion yuan in 2021, an increase of 13.2% over the same period last year, and its net profit was 553 million yuan, down 2.13% from the same period last year. In a single quarter, 21Q4 achieved revenue of 2.256 billion yuan (year-on-year + 55.58%, month-on-month-6.07%) and net profit of 123 million yuan (year-on-year-1.63%, month-on-month + 23%).
Comments: the volume and price of aluminum plastic film business is rising, and the income is high, and the traditional business is steadily opening up new customers. (1) Aluminum-plastic film business: in 2021, the income of aluminum-plastic film was 365 million yuan (+ 58.1%); the gross profit margin of aluminum-plastic film was 32.44% (- 2.75pcts); the sales volume was 2216.8 million square meters (+ 48.8%), of which the sales volume of aluminum-plastic film for power storage accounted for 55%; the average price was 16.4 yuan per square meter, with an increase of 0.90 yuan per square meter. At the beginning of the 21st century, Zijiang New Materials entered the supply chain of BYD DMi blade batteries, opening the application of domestic soft package lithium materials in square lithium batteries. 21H2 introduced ATL and BYD as strategic investors in Zijiang New Materials. At present, the company has an aluminum-plastic film design capacity of 3660 million square meters per year, with a 21-year capacity utilization rate of 70.9%. It has established stable cooperative relations with well-known manufacturers such as ATL, BYD, Penghui Energy, Polyfluoroduo and so on. (2) traditional business: the company's traditional business not only strengthens the existing market share, but also actively opens up new customers. In 2021, the company realized the growth of Coca-Cola Company system business, expanded the supply category of Blue Moon, successfully put into production new cooperation projects such as Guangming, Mengniu and Cass, and opened up new brand customers such as Yuanqi Forest, Xi Tea, Zhengxin, Dayao, Nai Xue and so on. PET bottles and bottle blanks / crown lids and labels / plastic anti-theft caps / color paper packaging printing / OEM beverages achieved revenue of 15.8 / 14.8 / 5.04 / 17.3 / 796 million yuan, with an increase of 15.7 / 29.8 / 20.3 / 14.2 / 24.5 per cent.
The rise in the price of raw materials has led to a decline in profit margins and good control of expense rates. During the reporting period, the company's gross margin fell 0.16pct to 21.2% year-on-year, and net profit margin fell 0.74pct to 6.32% year-on-year. The decline in profit margins is mainly due to the rise in the price of raw materials and the sharp increase in land value-added tax. The expense rate fell 0.13pct to 12.77% compared with the same period last year. Among them, the sales expense rate is 2.3% (0.29pct), the management expense rate is 6.17% (- 0.01pct), and there is a social security waiver in the same period last year, the financial expense rate is 1.17% (- 0.31pct), and the R & D expense rate is 3.13% (+ 0.49pct). This is mainly due to the increase of material investment caused by the company's increase in R & D investment.
Investment suggestion: the net profit of the company from 2022 to 2024 is estimated to be 7.47 / 9.5 / 1.13 billion yuan respectively. The corresponding PE is 12.619.928.34times respectively. Coverage for the first time, given a "buy" rating, corresponding to the target price of 10.7 yuan per share.
Risk tips: raw material price change risk, performance forecast and valuation judgment are not as expected.