The 21-year performance slightly exceeded expectations, with a cash dividend of 4.50 yuan for every 10 shares. The company announced 2021 results, with annual revenue of 3.81 billion yuan, YoY+24.0%, single Q4 revenue of 1.09 billion yuan, YoY+18.21%; annual net profit of 790 million yuan, YoY+43.4%, single Q4 net profit of 200 million yuan, YoY+18.2%. In 2021, the gross profit margin was 31.5%, a decrease of 5.5 pcts over the same period last year. The company intends to distribute a cash dividend of 4.5 yuan (including tax) for every 10 shares to all shareholders, and increase 2 shares for every 10 shares.
Drug bag revenue increased by 91.9% over the same period last year, increasing capital and expanding production for subsidiaries, optimizing customer and product structure at the income end, and from a business point of view, the company's drug bag business grew the fastest and contributed to the flexibility of performance. The revenue of drug bag business reached 540 million yuan in 2021, and the proportion of YOY+91.9%, in revenue increased by 5pct compared with the same period last year.
During the reporting period, the company completed the acquisition of its subsidiary Fuxin Huakang and increased its capital by 15 million yuan, initially forming the industrial layout of class I medicine bags and auxiliary materials; investing 120 million yuan in thin film hard film production projects to help Fuxin Huakang build a factory to expand production and contribute to performance growth; at the same time, the first key kit of the subsidiary increased by 11.45 million yuan to support its rapid development. The company sets up a wholly-owned subsidiary Dongfeng Pharmaceutical package to co-ordinate the pharmaceutical packaging business plate, integrate customer resources, develop high-quality foreign pharmaceutical customers, optimize the product and customer structure, and improve profitability; on the expense side, the company has achieved remarkable results in reducing costs and increasing efficiency. Sales / R & D / management expense rate 5.0% Compact 4.1% shock 0. 0% meme YoYmur0.9pctLue 0.3pctLue 0.3pct On the profit side, the company's gross profit margin in 2021 was 31.4%. The decline was mainly due to fluctuations in international commodity prices and imported inflation, recurrent COVID-19 epidemic and poor material supply chain, and the annual operating cost increased by 34.58% compared with the same period last year. And the company obtained orders through bidding, and the sales unit price decreased.
Investment suggestion
The company has been ploughing tobacco label for 30 years and is the first echelon enterprise in tobacco label industry, with the advantages of industrial chain and scale. The company's layout of high-growth track, long-term space open, bag and membrane business growth rapidly. It is estimated that the net profit of homing in 2022-24 is RMB 1.214.2 billion respectively, and the corresponding share price PE is 11X/9X/7X, maintaining the "buy" rating.
Risk hint
Raw material prices fluctuated sharply, new business growth fell short of expectations, and HNB policy regulation exceeded expectations.