Event: the company released its annual report for 2021, with an income of 720 million yuan in 2021, a year-on-year increase of 30.59%, a net profit of 140 million yuan, an increase of 3.44%, and a non-return net profit of 130 million yuan, an increase of 4.37% over the same period last year. It is proposed to pay a cash dividend of 3 yuan (including tax) for every 10 shares and increase 3 shares for every 10 shares. In the first quarter of 2022, the company achieved revenue of 140 million yuan, an increase of 7.44% over the same period last year, and a net profit of 17.54 million yuan, down 38.54% from the same period last year.
Comments:
Plate, table income have increased significantly, overseas income is eye-catching, the price has declined compared with the same period last year. The company's revenue increased by 30.59% in 2021, and the revenue of board and table by product was 5.0 yuan and 220 million yuan respectively, an increase of 32.07% and 26.84% respectively over the same period last year. The income of East China, which accounted for the largest proportion by region, was 300 million yuan, an increase of 31.86% over the same period last year. Overseas income was 150 million yuan, a year-on-year increase of 53.10%. The company disclosed that plate and table sales increased by 39.21% and 35.53% respectively compared with the same period last year, both of which were higher than the revenue growth rate, meaning that the company's plate and table sales prices declined in 2021.
The company's raw material procurement costs have risen and gross profit margins have fallen, but the profitability is still high. One of the main costs of the company is the resin of the petrochemical industry chain, and the average purchase price of resin is expected to rise under the background of the rise in the average price of crude oil in 2021. The gross profit margin of the company's plate and countertop fell by 9.49pct and 6.67pct to 30.02% and 27.51% respectively. The company's expense rate is well controlled, with a net interest rate of 19.49% in 2021, which is still high.
The change of downstream channels and the increase of concentration are conducive to the growth of corporate revenue. According to the company's prospectus, the company's major customers to Gold, Zhibang, Oupai, Sophia and other kitchen and bathroom custom home enterprises. The consumption channel based on custom home is becoming more and more popular, and the market share of leading custom home enterprises is also increasing, and the company's revenue growth is expected to benefit from this trend.
For the first time, it is given a "better than the market" rating. Artificial stone is an excellent kitchen and bathroom countertop material with high hardness, good decoration and good environmental protection performance. The company benefits from the expansion of the downstream custom home market and the improvement of its leading share, with a clear logic of income growth and a high level of net interest rate. We estimate that the net return profit of the company in 2022 to 2024 is 1.53,1.93 and 227 million yuan respectively, corresponding to EPS of 1.69,2.13,2.50 yuan per share respectively. We give the company 20 times of PE in 2022, with a reasonable value range of 28.73 to 33.80 yuan. For the first time, it is given a "better than the market" rating.
Risk hint. The competition aggravates the risk and the risk of recovery of accounts receivable.