Main points:
The company released its quarterly report for 2022: 22Q1 achieved 1.05 billion yuan in revenue, YoY+7.8%; achieved a net profit of 120 million yuan, YoY-50.7%,22Q1 gross profit was 32.2%, and the net cash flow of operating activities was-46.68 million yuan, YoY-143.8%.
Investment income due to project valuation fluctuations, excluding this factor performance and income growth synchronized with the income end, 22Q1 affected by the epidemic, some of the company's factories are underemployed, but the overall revenue increases steadily. Tobacco brand product structure optimization to support growth, is expected to improve design capacity, technical transformation, raw material substitution to improve gross profit margin. Drug packages to expand production, expand customers, optimize the product structure steadily, through the integration of the acquisition of drug bag enterprise capacity and quality rate, gross profit margin has room for improvement; new materials business or release capacity in Q4, gross profit margin may be relatively stable. On the profit side, the gross margin decreased slightly, speculating that it was mainly due to the adjustment of business structure. Due to the high listing price of the company's investment project Nai Xue in 2021, the decline in valuation is a drag on performance, and the investment income is-602.79 billion yuan. YoY-157.3%; still focuses on business transformation, excluding the impact of fluctuations in investment income caused by changes in the valuation of investment projects, the operating net profit increased by about 12% compared with the same period last year, which is basically in line with the income growth rate.
22Q1 reduces costs and increases efficiency significantly. In order to lock in costs and prepare goods in advance, the cash flow is reduced and the efficiency is significantly reduced. The 2022Q1 sales / R & D / management / financial expense rates are 3.5%, 3.7%, 6.7%, 0.6%, 0.6%, 0.3%, 0.1, 0.4, 0.4 and 0.2 pct, respectively. Cash flow, the company's cash flow decreased mainly due to the increase in accounts receivable and notes receivable compared with the same period last year, as well as the increase in cash raw materials payment in advance to lock in costs due to fluctuations in chemical raw material prices. 22Q1 advance increased by 68.7% compared with the same period last year. Subsidiaries Guangdong Xinrui prepaid polyester slicing and Guizhou Chiba prepaid raw material PVC and resin reserve increased year on year, and accounts receivable at the end of Q1 increased by 34.4% year on year.
Investment suggestion
The company has been ploughing tobacco label for 30 years and is the first echelon enterprise in tobacco label industry, with the advantages of industrial chain and scale. The company's layout of high-growth track, long-term space open, bag and membrane business growth rapidly. It is estimated that the net profit of homing in 2022-24 is 8.3 billion yuan respectively, and the corresponding share price PE is 13X/10X/9X, maintaining the "buy" rating.
Risk hint
Raw material prices fluctuate sharply, new business growth falls short of expectations, and investment income fluctuates sharply.