22H1 achieved a net profit of 158 million yuan, maintaining the "buy" rating company to release a semi-annual report on August 30. H1 revenue was 2.313 billion yuan, yoy+38%, net profit was 158 million yuan, of which Q2 revenue was 1.239 billion yuan, an increase of 28% over the previous month by 15%, and a net profit of 90 million yuan with a month-on-month increase, and a single-quarter revenue / return net profit reached a new level.
We maintain the company's 22-24 EPS forecast of 1.95 Wind 2.62 PE 3.30, combined with comparable company valuation level (22-year Wind consensus expectation average 26 times PE), considering that the company accounts for a lower share of new energy-related business than comparable companies, giving the company a 22-year valuation of 20 times PE, maintaining the target price of 39.00 yuan, and maintaining the "buy" rating.
Film-based and paper-based volume led to performance growth, raw material prices rose to compress gross profit 22H1, the company's new production capacity landed, and export backlog orders were released as sea freight fell. The sales volume of 22H1 cloth-based / paper-based / film-based tape was 0.78 billion square meters, respectively, and the average sales price of yoy+17%/24%/36%, was 3.7 pounds 1.70 pounds per square meter, yoy-1%/-5%/+4%. The surge in sales led to a year-on-year increase in sales revenue of 56%, 58%, 59%, to 4.2, 12.3 billion yuan. The rise of raw materials suppresses the performance of comprehensive gross profit margin. According to the half-yearly report, the price 22H1 of the company's main raw materials resin / OPP film / particles / butyl ester / pulp / SIS rubber / PVC powder changed respectively from the same period last year-10%, 1%, 18%, 9%, 7%, 3%, 13%, 13%, 22 H1, 11.6% and 2.5 pct, respectively. The 22H1 sales / management / R & D / financial expense rate is 0.6% Universe 1.7% Universe 2.8% Universe 1.3% mai yoymi 0.1 Acct, and the rate of sales / management / R & D / Finance expense is 0.2% Universe 0.8 Lexi 1.8 PCT.
Three new BOPP production lines have been added in 22 years, and the increment is expected to be gradually realized. According to the half-yearly report, the first line and the second line of the company's BOPP film drawing machine have been put into production in 21 years / 22H1 and achieved the expected benefits. The third line and the fourth line are expected to be put into production in August / October 22, respectively. After all the production lines reach production, the company's BOPP capacity will be three times larger than at the end of 21. 22H1 sold 19000 tons of BOPP to the outside world, with sales of 180 million yuan. According to Baichuan Yingfu, as of August 30, although the gross profit per ton of the BOPP industry has dropped from the 21-year high, it still maintains the level of more than 1100 yuan / ton, and the profit level is good. We expect that the new production line of BOPP will continue to contribute to revenue growth, and the advantage of scale is expected to be highlighted, which will also help to enhance the company's cost competitiveness and net interest rate.
Traditional tape and new categories continue to develop, and the advantage of industrial chain integration gradually shows the traditional tape. The continuous growth of express business volume will lead to an increase in demand, while the demand for food packaging downstream of BOPP is rigid. Due to the impact of rising prices of raw materials and epidemic situation in the past 21 years, the share of small enterprises has shrunk and the income of the head enterprises has continued to grow. The company distributes auto harness / degradable / pharmaceutical / consumer electronics and other high-end tape. With the relief of the epidemic in Shanghai, we expect the harness tape business to recover significantly. 22-23 is the period of concentrated release of new production capacity. 22H1 is under construction of 610 million yuan, along with IPO and convertible bond raising projects have been put into production one after another, the advantage of scale has been enhanced, and the volume of high value-added products will also increase profits.
Risk hint: the risk of substantial fluctuations in raw material prices and the risk that the production of new projects does not meet expectations.