Items:
22H1 realized operating income / homed net profit / deducted non-homed net profit of 5.58 max 0.51 million yuan (YoY+8.3%/-28.1%/-32.2%) and basic earnings per share of 0.14 yuan (YoY-36.4%). 22Q2 realized operating income / return net profit of 287 billion yuan (YoY+4.7%/-30.9%) and deducted non-return net profit of 23 million yuan.
Comments:
The plastic packaging business has expanded smoothly and the overseas income has increased considerably. From a product point of view, the business development of composite plastic packaging products has successfully increased sales. 22H1 Industrial Paper Packaging / Composite plastic Packaging has achieved revenue of RMB 364 million, YoY+2.1%/+10.7% respectively. From a sub-industry point of view, 22H1 Food and Food Additives Industry / Chemical Industry / Building Materials Industry achieved revenue of 2.77 hundred and fifty-five million yuan, YoY+21.9%/+0.3%/-15.2%. From a regional point of view, overseas income has achieved rapid growth, 22H1 company's overseas revenue is 116 million yuan, YoY+56.8%; is affected by the epidemic, and the domestic revenue of East China and North China is 0.61 million yuan and YoY-2.3%/-2.0% respectively.
Raw materials are rising, profits are under pressure, and cash flow performance is improving. Affected by the rise in raw materials and the large increase in freight during the epidemic, the company's profitability declined, with 22H1's gross profit margin / net return rate of 24.5% and 10.1% (YoY-9.2pct/-5.1pct), and 22Q2's gross profit margin / net return rate of 22.4% and 8.6% (YoY-12.3pct/-4.4pct, month-to-4.4pct/-3.1pct). In terms of expense rate, the expense rate during 22H1 is 14.5%, compared with the same period last year-2.0pct, and the sales / management / R & D / financial expense rate is 2.2%, 7.5%, 3.7%, 1.0% (YoY-2.8pct/+0.9pct/+0.3pct/-0.4pct), respectively. In terms of cash flow, the net operating cash flow of 22H1 Company is 105 million yuan, which is + 385.4% compared with the same period last year. The main reason is that the optimization of settlement methods increases the payback rate.
Revise earnings forecasts and maintain a "push" rating. The company is a leading provider of "integrated solution" for industrial paper packaging in China, accumulating important customer resources at home and abroad in the field of industry and consumption. the developed low-temperature and room-temperature storage composite plastic packaging products meet the packaging needs of Miaoke Lando and other enterprise cheese sticks. Taking into account the current high volatility of wood pulp prices and supply-side disturbances such as downtime, it is expected that the price of base paper such as Kraft paper will remain high in the second half of the year, and the company's profits will continue to be under pressure, so we reduce the company's profit forecast for 2022-2022. The company's net profit for 2024 is estimated to be 1.64 million yuan (the previous value is 175,141,267 million yuan). Corresponding to the current share price PE is 24.3 Universe 18.7 plus 15.1 times. Using the DCF valuation method, the company is given a target price of 11.1 yuan per share, corresponding to 27 times PE,2023 in 2022 and 21 times PE in 2022, maintaining a "strong push" rating.
Risk hint: the cost of raw materials fluctuates greatly and the market competition intensifies.