Event: the company released its annual report for 2021. During the reporting period, the company achieved revenue of 5.067 billion yuan, an increase of 20.89% over the same period last year; net profit of 1.02 billion yuan, an increase of 23.82% over the same period last year; and basic earnings per share of 0.7 yuan per share. Of this total, the company's revenue in the fourth quarter was 1.417 billion yuan, an increase of 20.06 percent over the same period last year, and its net profit was 203 million yuan, an increase of 25.57 percent over the same period last year.
The change in business structure led to the decline of the company's gross profit margin. During the reporting period, the company's comprehensive gross profit margin was 32.21%, down 2.59% from the same period last year. Among them, the single-quarter gross profit margin in the fourth quarter of 2021 was 28.69%, an increase of 3.49% over the same period last year, and a decrease of 3.76% from the previous quarter. The decline in the company's gross profit margin was mainly due to changes in the business structure: in the company's packaging, new tobacco and other three major business sectors, the revenue share of the new tobacco business increased from 0.84% to 3.34%, and that of other businesses increased from 12.6% to 18.77%. The gross profit margins of the company's new tobacco business and other businesses were 14.05% and 12.21% respectively, much lower than 37.69% of the packaging business. Drive the overall gross profit margin down.
The expense rate increased slightly, and the net interest rate decreased sharply compared with the same period last year. During the period of the company, the expense rate was 13.32%, an increase of 0.59% over the same period last year. Among them, the sales expense rate was 1.83%, an increase of 0.1% over the same period last year; the management expense rate was 6.93%, an increase of 0.65% over the same period last year; the financial expense rate was-0.15%, down 0.03% from the same period last year; and the R & D expense rate was 4.71%, down 0.14% from the same period last year. In terms of net interest rate, the company's net interest rate during the reporting period was 20.83%, up 0.22% from the same period last year. Among them, the 21Q4 single-quarter net interest rate was 15.14%, down 0.08% from the same period last year, and 11.56% from the previous quarter.
The main business of tobacco label continues to recover, and the growth of the new tobacco sector is bright. During the reporting period, the company's tobacco label business achieved revenue of 2.301 billion yuan, down 4.07% from the same period last year, mainly because some regional markets were in a period of recovery, with a decline of 13.79% compared with the previous year, and the business recovered somewhat. In terms of new tobacco, the company expanded production capacity, integrated the industrial chain, paid attention to changes in customer demand, and realized revenue of 169 million yuan, an increase of 381.16% over the same period last year. The company's color box business and packaging new materials business also achieved steady growth, with revenue of 11.34 yuan and 961 million yuan respectively, an increase of 23.29% and 32.5% respectively over the same period last year.
The layout of a new tobacco industry chain is expected to usher in a new growth point. The company seizes the policy opportunity to comprehensively layout the new tobacco industry chain, atomizing e-cigarette and HNB coordinated development. In terms of atomized e-cigarettes, the company distributes atomized e-cigarettes through Yunshuo technology; provides atomized e-cigarette foundry business through Jinjia technology, with customers covering well-known brands at home and abroad, including Suorin, you and me technology, dragon dance technology, etc.; through the joint venture subsidiary Yingwei technology, launched its own brand Foogo. In terms of HNB, the company distributes HNB flavors and spices and related supporting materials through Changyi Science and Technology; provides HNB smoking set R & D and production business through Jiaju Electronic layout HNB Materia Medica OEM and its own brand business. In terms of supply chain, the company set up Yunpu Xinghe and acquired Hong Kong Hengtian Commerce, providing overseas import and export trade and marketing and other comprehensive services.
Investment suggestion: the company takes packaging business as an important basic market, speeds up the layout of the whole industry chain of new tobacco research, production and marketing, and is expected to enjoy the dividend of new tobacco development by virtue of the first-mover advantage under the background of policy landing. It is expected that the company will be able to achieve EPS 0.86 / 1.04 / 1.25 yuan per share in 2022-23-24, corresponding to 13x / 11x / 9X PE, maintaining the "recommended" rating.
Risk hint: the risk that economic growth is less than expected; the risk of intensified market competition.