Event: the company released its annual report for 2021, with a total operating income of 33.02 billion yuan, an increase of 7.43% over the same period last year, and a net profit of 2.066 billion yuan, an increase of 20.65% over the same period last year. Basic earnings per share is 0.56 yuan.
The annual revenue growth of 21 is in line with expectations, and Q4 profits are temporarily under pressure. For the whole year, the company's machine paper output was 5.5 million tons (- 4.68%) and sales were 5.45 million tons (- 2.85%), with total revenue of 33.02 billion yuan, an increase of 7.43% over the same period last year, and net profit of 2.066 billion yuan, an increase of 20.65% over the same period last year. From a quarterly point of view, the company's revenue in the four quarters of 2021 was 102.06Universe 85.89Company7.258 billion yuan, compared with the same period last year. + 67.71% Universe 7.28% Universe 1.36% Universe 16.22%; the net profit of returning to the mother was 11.79Mab 8.42Mab 1.61Universe RMB 117 million, compared with the same period last year + 481.42% Universe 168.56% Universe 71.22% Universe 118.38%. The first half of the industry demand is strong and pulp prices rise to provide support, paper prices fell in the second half of the year led to a decline in profitability, the overall steady rise. In terms of products, the annual revenue of white cardboard / a pair of adhesive tape / coated paper / electrostatic paper was 95.80,72.87, respectively, and 21.25%, 5.91%, 4.26%, 4.82%, respectively, and accounted for 29.01%, 22.07%, 13.06%, 11.68%, and + 3.31/-0.32/-0.39/-1.50pcts, respectively. In addition, the revenue from financial leasing business was 327 million yuan, down 65.03% from the same period last year, accounting for a decline in total revenue by 2.05pcts to 0.99% from the same period last year.
The overall performance of profitability for the whole year was stable, and the scale of financial leasing business fell by 2.2 billion yuan for the whole year. For the whole year, the gross profit margin was 23.61%, an increase of 0.54pct over the same period last year, of which 21Q4 gross profit margin was 16.20%, down 2.61pcts from the same period last year. In terms of products, the gross profit margin of machine paper is 23.50%, an increase of 2.71pcts over the same period last year, and the gross profit margin of white cardboard / a pair of adhesive tape / coated paper / electrostatic paper is 31.72%, 17.60%, 27.38%, 18.67%, respectively, compared with the same period last year + 4.68/-0.16/+6.07/-2.56pcts. The sales / management / R & D / financial expense rates are respectively year-on-year-0.08/-0.49/+0.25/-1.11pcts to 0.89% to 2.85% to 4.40% to 7.23%. The net interest rate for the whole year was 6.33%, an increase of 0.13% over the same period last year. 21Q4 downstream demand weakens and the superimposed cost pressure increases, and the net interest rate turns to a loss of-0.53% over the same period last year. At the same time, the scale of the company's financial leasing business will be reduced by 2.2 billion yuan in 2021, continuously reducing the scale of financial leasing business and reducing the company's asset-liability ratio.
Adhere to the strategic layout of pulp-paper integration, there is more room for industry growth in the future. By the end of 2021, the company's machine-made paper production capacity has reached 6.8 million tons, and the self-made wood pulp production capacity is about 4.3 million tons. The continuous promotion of pulp-paper integration is conducive to gradually strengthening the cost-end advantage, while the company's own cycle attribute may be gradually weakened. The second phase of Huanggang Chenming project has started construction. After completion, it is estimated that an additional paper production capacity of 1.5 million tons per year (cultural paper, white cardboard), as well as a mechanical pulp production capacity of 520,000 tons per year, will consolidate the company's leading position in pulp paper. We estimate that the net profit of 2022 and 2023 will be 2.059 billion yuan and 2.21 billion yuan respectively, an increase of 0% and 7% respectively over the same period last year. The current stock price corresponds to a PE of 9X in 2022, maintaining the "highly recommended-A" rating.
Risk tips: consumer demand slows down, market competition aggravates the risk, COVID-19 epidemic situation is repeated.