The increase in the proportion of high-end products has contributed to steady growth in performance. The company is a leading domestic BOPET film enterprise, after years of research and development and technology accumulation, products continue to optimize and upgrade. In 2021, the company's four high-end material sectors, optics, new energy, information and thermal shrinkage, increased their volume profits, and the gross profit of high-end products increased from 60.3% in 2020 to 75%. Further stride forward from traditional ordinary film enterprises to new high-end membrane enterprises; revenue for the whole year reached 5.93 billion, an increase of 17.2% over the same period last year, and the net profit of home was 1.39 billion yuan, an increase of 92.1%.
Benchmarking is implemented at the cost end of raw materials to maximize product profitability. BOPET film main raw materials PTA and ethylene glycol have a high correlation with crude oil prices, high oil prices will increase the cost pressure of film enterprises, double Star new materials through benchmarking, through pre-setting raw material benchmarking prices to flexibly adjust procurement and inventory, can maximize the dynamic control of raw material procurement and inventory costs, and optimize the company's profitability.
New production capacity and sales-driven, the company's future growth momentum is strong. Since February 2022, large-scale outbreaks have broken out in the Pearl River Delta and the Yangtze River Delta one after another, superimposing the rise in the price of upstream materials, and the company's 2022Q1 has achieved a net profit of 359 million, a year-on-year growth rate of 30%. Although it is slightly down 12.8% from the previous month, it is expected that the company's overall performance will remain at a high level in 22 years with the subsequent release of production capacity and the control of the epidemic. The company's planned revenue and profits in 2022 will increase by more than 30% compared with 2021 (the growth rate of production and sales in 22 years is expected to be more than 50%). The core driving force is the climbing of new capacity and the growth of sales of high-margin products.
Profit forecast and valuation: the estimated net profit of the company in 2022, 2023 and 2024 is 1.95 billion, 2.67 billion and 3.38 billion respectively, EPS is 1.7,2.3 and 2.90 yuan, PE is 7.7X, 5.6X and 4.4X respectively, maintaining the "buy" rating.