The company announces its quarterly report for 2022. 2022Q1 achieved revenue of 2.322 billion yuan, down 1.37% from the same period last year, and its net profit was 116 million yuan, up 15.78% from the same period last year, deducting 85 million yuan from non-home net profit, down 2.08% from the same period last year. Affected by the spread of the epidemic in many places after the Spring Festival, the income side declined slightly, and the higher increase in net profit was mainly due to an increase of 78.66% in investment income and 3736.99% in asset disposal income compared with the same period last year; if you exclude the impact of the increase in printing and dyeing water treatment costs caused by the shutdown and maintenance of the company's eastern sewage treatment plant in the first half of 2021, the recovery of 2022Q1 profit margin is better than that of the income side.
Profitability has improved and the expense rate has increased during the period. In 2021, the company's gross profit margin and net profit margin were 10.28% and 5.53% respectively, with year-on-year changes of + 1.76/+0.76pct respectively. In terms of expenses, the sales / management / R & D / financial expense rates are 1.21%, 2.26%, 1.76%, 0.12%, respectively, with year-on-year changes in YOY+0.45/+0.52/+0.41/-0.02pct.
The printing and dyeing business recovered well in 2021, and its operation and profits continued to improve from January to February in 2022. The printing and dyeing business will maintain a good recovery in 2021, the export scale will be further expanded compared with the epidemic situation, and the profit level will be significantly improved. According to the data of the National Bureau of Statistics, the sales profit margins of printing and dyeing enterprises above the national scale in 2019, 2020, 2021 were 5.59%, 4.98%, 5.39%, respectively, and the revenue from January to February of 2022 was 39.549 billion yuan (YOY+18.89%), and the sales profit margin was 1.91% (YOY+0.41pct). The overall operation of the industry has improved compared with the same period last year.
Gold jewelry business demand is strong, the company is the industry contract manufacturing leader. According to data from the China Gold Association, China's gold jewelry consumption in 2021 was 711.29 tons (YOY+44.99%), an increase of 5.18 percent over 2019. The company's gold jewelry processing volume ranks first in East China and the top three in the country.
Profit forecast and investment advice. It is estimated that the EPS from 2022 to 2024 will be 0.77 yuan per share, 0.84 yuan per share and 0.93 yuan per share respectively. With reference to the average PE in the past three years, the 2022 PE is valued at 10 times, maintaining a reasonable value of 7.65 yuan per share and a "buy" rating.
Risk hint. The risk of fierce market competition and the risk of stagnant demand.
