The company issues the 2021 annual report. In 2021, the company achieved revenue of 857 million yuan, an increase of 20.04% over the same period last year, and a net profit of 105 million yuan, an increase of 1.69% over the same period last year.

The increase in volume drives the growth of the company, and the rise in aluminum prices of raw materials leads to profit pressure. In 2021, the company's revenue from flexible packaging and hard packaging was 616 million yuan and 234 million yuan respectively, an increase of 17.15% and 29.08% respectively over the same period last year. In 2021, the sales volume of the company's new pharmaceutical packaging materials was 30.97 million kg, and the year-on-year growth rate was 17.61%. In 2021, the company's soft packaging and hard packaging gross profit margins were 29.05% and 26.54% respectively, declining 6.15pcts and 2.53pct respectively.

The revenue of subsidiary Suzhou Haishun, Zhonghui medicine bag and Duoling medicine bag increased by 20% compared with the same period last year. In 2021, the main subsidiaries of Suzhou Haishun, Zhonghui Medicine bag, Duoling Medicine bag and Jiucheng Packaging realized revenue of 547 million yuan, 133 million yuan, 100 million yuan and 289 million yuan respectively, an increase of 28%, 20%, 28% and 2% respectively over the same period last year. In 2021, the main subsidiaries of Suzhou Haishun, Zhonghui Medicine bag, Duoling Medicine bag and Jiucheng Packaging realized net profits of 86.83 million yuan, 3.74 million yuan, 9.96 million yuan and 30.67 million yuan respectively, up 9.09%,-44.28%, 214.04% and-32.42% respectively over the same period last year, and the net interest rates were 16%, 3%, 10% and 11%, respectively. Suzhou Haishun's main business is paper and plastic packaging and new pharmaceutical packaging materials; Duoling bags are mainly engaged in PVC hard tablets for pharmaceutical packaging, PVC\ PVDC composite hard tablets for pharmaceutical packaging, and plastic packaging sheets for food; Shijiazhuang Zhonghui is mainly engaged in plastic packaging, aluminum packaging, plastic packaging, etc.; Jiucheng Packaging is mainly engaged in packaging and decoration printing, packaging materials, packaging products, textiles and so on.

Take root in medicinal packaging, extend the end of basement membrane materials upward, expand new consumption, new energy and other fields downward, and cultivate new profit growth points. Taking root in the pharmaceutical packaging industry, the company has developed new products such as high barrier thermoplastic sheet and corrosion resistant lithium battery aluminum plastic film by using multi-layer co-extrusion high barrier technology, precision coating technology, composite cold forming technology and so on. used in new consumption, new energy and other fields. In addition, the company has 109 patents, including 13 invention patents, and has mastered a number of core technologies of independent intellectual property rights, including cold stamping composite hard sheet production technology, high barrier polytrifluoroethylene / PVC composite hard sheet production technology, high barrier multi-functional polyolefin film production technology, high barrier easy-to-tear film material and composite production technology. Related products have been recognized by Huahai Pharmaceutical, Shanghai Pharmaceutical, AstraZeneca PLC, Mengniu, British American Tobacco PLC and other well-known customers at home and abroad.

Pharmaceutical packaging: large-scale production, quickly match the needs of customers for large quantities of orders, the national collection further highlights the company's scale advantages. The company holds 121registration numbers of drug packaging materials and 12 records of DMF. At present, more than 2000 customers have had business relations with the company, and 80% of the top 100 enterprises in China's pharmaceutical industry have established cooperative relations with companies; the pattern of pharmaceutical packaging industry is relatively scattered, there are more than 1500 domestic drug packaging enterprises, most of them are in the order of 10 million, and there are few domestic companies of more than 200 million. The company has large-scale production capacity, can quickly match customers' large-scale orders, with the national drug collection and other mechanisms in-depth promotion, the company's capacity advantages will be further brought into play.

The first phase of Nanxun project was completed and accepted, and the second phase of the project entered the construction stage. At present, the company has three major production bases in Suzhou, Jiaxing and Shijiazhuang, and its production capacity is relatively fully utilized. It is expected that the production lines such as aluminum-plastic film, high-performance bottles, reagent packaging and easy-to-tear high barrier sheets will be put into production smoothly in 2022. As of the reporting date, the first phase of Nanxun project is applying for completion and acceptance, and the second phase of the project has entered the construction stage to ensure that the production line of 18000 tons of high barrier composite materials will be launched as soon as possible. In addition, at present, Duoling bag has an annual production capacity of 1500 tons of high barrier and high sealing drug packaging composite film.

Profit forecast and rating: as the leader of the medicine bag, the company takes cold stamping composite hard film products as the core, and continues to expand its application scenarios in new consumption, new energy, electronic protection and other emerging fields. The founder and core team of the company have a professional degree background and have been focused on the field of pharmaceutical high barrier packaging for 20 years with rich experience in the industry. Due to the large increase in raw material prices, the company's operating costs have increased significantly, and the company's profit forecast has been revised downgrade. we estimate that the company's net profit in 2022, 2023, and 2023 will be about 1.4 million yuan, respectively. (the net profit in 2023 years ago is 1.6 shock 2.1), and the corresponding PE is 28 ppm, respectively, maintaining the "Buy" rating.

Risk tips: fund-raising projects do not meet expectations after production expansion, industry policy adjustment, the impact of the macro epidemic.