Core ideas:
The company announces its 2021 annual report. In 2021, the company achieved operating income of 643 million yuan (YOY+74.22%), net profit of 180 million yuan (YOY+67.77%) and non-return net profit of 179 million yuan (YOY+68.37%). This is mainly due to the strong demand in the industry, the company's fund-raising projects broke through the capacity bottleneck and the sales of airtight materials increased significantly. Among them, 2021Q4 achieved an income of 149 million yuan (YOY+11.17%) in a single quarter and a net profit of 30 million yuan (YOY-19.28%). The slowdown in growth is due to (1) a high base in the same period last year, and (2) affected by the epidemic and a sharp rise in sea freight charges, the pace of customer orders has slowed down.
Sub-category: airtight materials have risen sharply, and the proportion of revenue continues to increase. In 2021, the income of airtight materials was 544 million yuan (YOY+82.26%), the gross profit margin was 42.56% (YOY-4.98pct), and the production / sales volume was 168.9x16.32 million square meters (YOY+74.09%/+71.69%), accounting for 85.51% of the main revenue (YOY+3.89pct). In 2021, the income of flexible materials is 90 million yuan (YOY+49.75%) and the gross profit margin is 23.19% (YOY-1.90pct).
The profit level is under pressure under the influence of the rise of raw materials, and the operation quality is good. The company's sales gross profit margin in 2021 is 39.39% (YOY-3.42pct) and net profit margin is 28.07% (YOY-1.08pct), which is mainly affected by the rise in raw material prices. In terms of expenses, the company's sales / management / R & D / financial expense rates in 2021 were 0.77%, 2.58%, 3.45%, 1.25%, respectively, with year-on-year changes in YOY-0.18/-0.67/+0.12/-1.25pct. Due to the rapid growth of business income, the rate of sales and management expenses showed a downward trend; the company paid attention to R & D investment, and the rate of R & D expenses increased slightly.
Profit forecast and investment advice. It is estimated that the EPS of the company in 22-24 is 2.00 yuan per share, 2.35 yuan per share and 2.77 yuan per share respectively. With reference to the comparable company valuation, considering the gradual release of the company's production capacity and the continuous increase in the proportion of airtight materials, the company will be given 16 times PE in 2022, corresponding to a reasonable value of 32.03 yuan per share, maintaining a "buy" rating.
Risk hint. The risk of raw material price fluctuation, the risk of falling unit price of sales, and the risk that capacity expansion cannot be effectively digested.