Event: the company released 21 annual report and 22-year quarterly report: revenue in 21 years was 2.765 billion yuan, + 34.58% compared with the same period last year, and net profit was 202 million yuan, + 304.28% compared with the same period last year. 22Q1 realized revenue of 658 million yuan, + 18.54% year-on-year, and net profit of 43 million yuan, + 383.94% compared with the same period last year.
1. The income end is growing rapidly, and the sales scale of functional sugar products continues to expand. In 2021, the revenue side of the company grew rapidly, with revenue of 2.765 billion yuan, an increase of 34.58% over the same period last year. From a product point of view, the income of functional sugar / starch sugar / feed products reached RMB 12.12 million, an increase of 50.76%, 16.09% and 44.89% respectively over the same period last year, accounting for 43.84% of the total revenue, 33.73% and 11.15% of the total revenue, compared with the change + 4.70pct/-5.37pct/+0.79pct in 2020.
1) erythritol rose in both quantity and price. In the functional sugar business, the income of sugar alcohol / oligosaccharides / other functional sugars reached RMB 2.92 billion respectively, an increase of 60.89%, 23.29%, 65.99%, and accounted for 24.17%, 10.58%, 9.09% of the overall revenue, respectively, with a change + 3.95pct/-0.97pct/+1.72pct compared with 2020. In terms of price, under the trend of reducing sugar, the downstream demand of erythritol is exuberant, there is a large gap between supply and demand in 21 years, and the price is higher than that in the same period of 20 years. In terms of quantity, the company is the first industrial enterprise of erythritol in China. Customer resources are rich and orders are sufficient. The production capacity of 2021Q3 erythritol has been expanded to 30,000 tons, and we expect to release another 30,000 tons of new capacity in mid-2022, providing a strong guarantee for subsequent sales growth.
2) Aloxetose has great potential to create the second growth curve. Aloxanose, as a new generation of functional health sweetener, is expected to be a potential product for sucrose substitution in the future. Aloxanose has been approved by 14 countries and regions, including the United States, Canada, Japan, South Korea, Central and South America, and the global market supply and demand is tight. As a large dry-based aloxone sugar producer, the company currently has a production capacity of 7000 tons / year and is expected to increase production by 30,000 tons. We expect to be partially put into production in 2022. With the landing of production capacity, it is expected to quickly seize market share and contribute to new performance growth points.
2. Operating efficiency has been significantly optimized and profitability has been greatly improved.
1) the gross profit margin of the company has increased significantly. 2021 realized gross profit margin of 13.39%, compared with 20 years' change + 4.23pct: among functional sugars, sugar alcohol / oligosaccharides / other functional sugars achieved gross profit margin of 28.67%, 24.10%, 10.54%, respectively, compared with the change of + 13.63pct/3.27pct/-4.52pct over the same period. Sugar alcohol benefited from the sharp rise in prices, and the gross profit margin increased significantly. Among starch sugars, fructose syrup / maltodextrin / other starch sugars achieve a gross profit margin of 4.22%, 3.88%, 14.17%, respectively, with a change of + 4.15pct, + 3.02pct, 4.96pct; feed, 2.94%, and + 0.80%, respectively.
2) the operating efficiency has improved significantly, and the profit end has increased significantly. In 2021, the company realized a net profit of 202 million yuan, which was + 304.28% compared with the same period last year. From the cost point of view, the sales / management / finance / R & D expense rates in 2021 are 1.23%, 3.19%, 0.62%, 0.46%, respectively, compared with the same period-0.32pct/-0.38pct/-0.12pct/-0.09pct. The cost side of the company has declined significantly, reflecting the continuous improvement of the company's operating efficiency and further expanding the profit space under the background of rapid income growth.
3. As a leading enterprise of functional sugar, the company has obvious core advantages. We believe that the company's competitive advantage is mainly reflected in three aspects: 1) the advantage of the whole industry chain: the company is the only full-functional sugar product manufacturing service provider in China. can fully meet the diversified needs of downstream customers; 2) R & D advantages: the company has a strong R & D capability to continuously create food and drinks in line with health trends. 3) Brand and market advantages: over the years, the company has continuously strengthened the ability of key customer marketing and program marketing, tailored solutions for customers, and strong customer stickiness.
Profit forecast and investment suggestion
We believe that under the general trend of reducing sugar, the company, as a leading enterprise of functional sugar, is expected to achieve rapid performance growth through its own advantage α. It is estimated that the revenue from 2022 to 2024 will be 46.9 543 billion yuan respectively, the net profit of return to the mother will be 3.6 yuan / 440 million yuan respectively, the EPS will be 0.8 pound 1.0 won 1.2 yuan, and the corresponding PE will be 12.3x/9.7x/8.1x respectively, maintaining the "buy" rating.
Risk tips: intensified competition in the industry, fluctuations in downstream customer demand; the company's product sales are not as expected; the risk of raw material price fluctuations; the risk of decline in profits caused by depreciation of new fixed assets