The company released the annual report for 2021 and the quarterly report for 2022, with revenue of 3.84 billion yuan in 2021, + 59.07% year-on-year, net profit of 226 million yuan, + 28.50%, deduction of non-return net profit of 188 million yuan, + 56.79%, gross profit 12.99%, year-on-year-1.42PCT, net profit 5.87%, year-on-year-1.40PCT. 2022Q1 realized 1.074 billion yuan in revenue, + 51.26% /-9.75% in the same month, 68 million yuan in net profit, 11.85% in the same month, 119.35% in the same month, 12.14% in gross profit,-1.07PCT/+1.51PCT in the same month, 6.29% in net profit and-2.22PCT/+3.68PCT in the same month.
In 2021, profits will rise with volume compensation, 2022Q1 raw material costs will go down, and full-year profits are expected to be repaired. Due to the rise in raw material prices and shipping rates in 2021, although the company's tape business has a certain ability to increase prices, the profit end is still under pressure. the company paid a premium by volume, and the sales volume of film-based / paper-based / cloth-based tape was + 32.65% / + 50.67% in 2021 compared with the same period last year, supporting the upside of performance.
At the same time, it can be seen that the prices of most raw materials in 2022Q1 have begun to decline, and the company's gross profit margin and net profit margin have improved. It is expected that the cost pressure will be gradually relieved in 2022, and the profit end is expected to be repaired.
BOPP film will cast 2 more lines this year, the car wire harness tape is advancing smoothly, and the performance is expected to rise to another floor in 2022. The company had planned to build four BOPP drawing lines using German Bruckner equipment. At present, two lines have been put into production in 2021Q1 and 2022Q1, and the other two lines are expected to be put into production from June to August this year. In 2021, the company actively distributes the industrial tape field, the automobile wire harness tape has passed the 3000-hour aging test in 2021Q3, and cooperates with new energy vehicle companies. It is expected that the industrial tape business will achieve rapid growth in 2022.
Investment advice: the company is a leader in the adhesive tape industry, and we think the company is expected to be the first to seize the opportunity of import substitution of industrial tape to become a global leader. From 2022 to 2024, the company is expected to achieve a return to the mother net profit of 3.93 yuan 5.21 / 600 million yuan, maintaining the "buy" rating.
Risk hint: the progress of project construction is lower than expected.