Event
The company released its 2021 annual report, with revenue of 5.93 billion yuan in 21 years, an increase of 17.2% over the same period last year, a net profit of 1.39 billion yuan, an increase of 92.1% over the same period last year, and a deduction of 1.24 billion yuan in non-net profit, an increase of 97.9% over the same period last year. Corresponding to Q4 in 21 years, the net profit of returning to the mother in a single quarter was 410 million yuan, an increase of 52.6% over the same period last year and 11.4% over the same period last year.
Brief comment
Optical film products continue to be high-end, and production capacity expansion contributes to the take-off of annual performance. As the leader of BOPET, under the accurate grasp of the development trend of product technology, the company has focused on the development of forward-looking technology products in recent years. Six production lines of 300000 tons of high-end films in the first phase of the construction of the company's 200 million square meters optical film project in 21 years have been fully put into operation, and the total production capacity of BOPET has reached 860000 tons, an increase of 54% compared with the same period last year. In the first half of 22 years, another two-stage functional film capacity of 200000 tons was delivered. In 2021, the company's total BOPET film production was 524000 tons, year-on-year + 16%, sales volume 510000 tons, year-on-year + 3%; production and sales of high-end products increased steadily, with sales of optics, new energy, information and heat shrinkage reaching 143000 tons, 111000 tons, 22000 tons and 21000 tons respectively, with year-on-year sales of + 19%, + 49%, + 60% and + 71% respectively; and general film sales of 216000 tons,-21.2% year-on-year, accounting for a gradual decline.
Optical materials, new energy materials, variable information materials and heat-shrinkable materials realized sales revenue of 2.146 billion, 1.248 billion, 385 million and 306 million respectively, accounting for 36.19%, 21.04%, 6.50% and 5.16% respectively, up 33.68%, 76.50%, 62.21% and 49.10% respectively over the same period last year. The gross profit margin was 35.07%, 34.93%, 45.41% and 30.18% respectively, up 11.63%, 10.69%, 4.62% and 8.93% respectively over the same period last year. The comprehensive gross profit margin increased steadily to 32.86%, an increase of 10.31pct over the same period last year, and a net profit rate of 23.36%, an increase of 9.12pct over the same period last year. The total revenue of the company for the whole year was 5.93 billion, an increase of 17.2% over the same period last year, and the net profit returned to home reached 1.386 billion, an increase of 97.9% over the same period last year. Among them, Q1, Q2, Q3 and Q4 realized net profit of 2.76,3.28,3.70 and 413 million yuan respectively, and Q4 increased by 11.6% over the previous year. During the reporting period, the company deducted 1.24 billion of its non-net profit, an increase of 97.9% over the same period last year, of which Q4 deducted non-net profit of 320 million, a slight decrease of 4.5% from the previous month. The main reason is that equity incentives were given to 251 employees in August 21, and authorization was granted at the end of the third quarter. 37 million of the fees incurred are deducted from Q4. Second, the annual credit impairment in accordance with accounting standards is 30 million, affecting the net profit of the fourth quarter, excluding the above impact, the revised Q4 deduction non-net profit is close to 380 million, an increase of more than 12% compared with the previous quarter. In addition, the net operating cash flow of the company during the reporting period was 1.04 billion, compared with-12% of the same period last year. The net operating cash flow of Q4 was-317 million, which was mainly due to the annual cash rebate of 4.85 billion, and the receipt of bills accounted for about 1.6 billion, which was not reflected in the operating cash inflow. After deducting this part of the impact, the revised net operating cash flow of the company in 2021 was 1.89 billion, which was + 57% of the same period last year. According to the company's annual business plan, the company's planned revenue and net profit will grow by more than 30% in 2022 compared with the same period last year, which we think is relatively conservative. In 2022, with further product upgrades and production capacity investment, the company is expected to achieve 75.8 million tons of sales. Compared with the 21-year increase of about 50%, the growth momentum is sufficient, and the performance can be realized.
Expand the layout of new materials, continue to optimize the business structure. In 2021, the company's R & D expenses were 267 million, an increase of 69.7% over the same period last year, and R & D expenses accounted for 4.50% of business income, an increase of 1.39pct over the same period last year. There were 353 R & D personnel, an increase of 122.01% over the same period last year, and the company implemented 15 new products of independent innovation to achieve mass production. 50 new patent applications were added, including 30 invention patents and 36 authorized patents, including 15 invention patents. There are 12 independent projects for innovative achievements. The company's R & D technology advantages promote the development of new materials products, and the gross profit contribution of the company's new materials business in the past 21 years has exceeded 75%. On the basis of vigorously carrying out technological research and development and putting in new production capacity, the company has gradually transformed from a main functional packaging material enterprise to an innovative high-end enterprise of optics, photovoltaic, information and other membrane materials through years of technology accumulation and upgrading, with the help of five major business plates to form a vertical integrated layout of films and films, and the market competitiveness has been continuously improved.
Benchmark procurement to optimize costs, expand the network platform to achieve sales focus. The company's main raw material PTA has a high correlation with oil prices. In 2021, the average prices of cost-side PTA and MEG were 4723 yuan and 5252 yuan per ton respectively, up 28.0% and 36.8% respectively over the same period last year. As of March 27, 22, the average cost-side PTA price was 5589 yuan / ton, compared with + 26% at the beginning of the year, 5171 yuan / ton at the beginning of the year, and + 4.7% at the beginning of the year. Under the pressure of rising raw material prices, the company controls raw material costs to a certain extent through benchmarking, and with the help of higher raw material inventory scale, the actual raw material cost is relatively low under the background of rising oil prices and rising current prices of raw materials; and the company has appropriately raised prices by 10% 15% to downstream customers at the beginning of 22, and the control of the superimposed cost side will effectively ensure the profitability of the company. In addition, the company's overseas revenue declined slightly in 2021, with export sales of 820 million yuan for the whole year,-13.6% compared with the same period last year, mainly due to the shortage of shipping containers in 21 years, high shipping costs, and the difficulty of booking warehouses caused by the epidemic. However, in the past 21 years, the overall domestic demand is more urgent than foreign demand, and the price is higher, so it has not had a great impact on the company's performance; at the same time, the company has taken measures that focus on sales and actively broadened online channels with the help of the network platform. continue to strengthen communication with customers, e-commerce platform sales revenue increased by 60% year-on-year. In the first quarter of 2022, the company adjusted its product structure and continued to meet market demand. According to the statistics of the first 12 weeks, Q1 exports increased by 60% compared with the same period last year. With the subsequent recovery of overseas economy and the decline of sea freight, the company's overseas sales are expected to recover quickly this year to further protect the company's profitability.
Profit forecast and valuation: considering the gradual launch of new production capacity of high-end functional film in 2022, 2023 and 2024, it is estimated that the company's net profit in 2022,2023 and 2024 is 1.95 billion yuan, 2.67 billion yuan and 3.38 billion yuan respectively, EPS is 1.7,2.3 yuan and 2.90 yuan respectively, PE is 11.7X, 8.6x, 6.8x respectively, with a target price of 38.8 yuan per share, with significant growth and maintain a "buy" rating.
Risk analysis: the project production is not as expected, and the downstream demand is not as expected.