Event: 2022H1 achieved operating income of 1.071 billion yuan (year-on-year + 18.51%) and net profit of 144 million yuan (year-on-year + 26.89%). Among them, 2022Q2 realized operating income of 567 million yuan (year-on-year + 15.89%) and net profit of 95 million yuan (year-on-year + 34.39%).
Comments:
The growth in the first half of the year was steady, and the development of new products & new channels were laid smoothly. In terms of products, the revenue of finished frame / lines / plastic particles / environmental protection equipment in the first half of the year increased by 13% / 16% / 36% / 65% to 5.7 / 2.6 / 2.0 / 20 million yuan respectively. In the face of the epidemic, the company has taken measures to stabilize production and ensure shipments, and all main business products have achieved double-digit growth, of which the rapid growth rate of plastic particle revenue is mainly due to the rise in oil prices and the launch of new production capacity of PET in Malaysia. Under the background of the conflict between Russia and Ukraine and the inflation in Europe and the United States, the company has horizontally expanded MDF, aluminum alloy, iron art and other multi-material products, enriched the product matrix, and focused on increasing the construction materials for decoration, the laying of home decoration channels and the development of overseas retail stores to actively open up new channels.
The net interest rate increased month-on-month, and the expense rate decreased compared with the same period last year. 22Q2's gross profit margin is 28.35%, month-on-month-0.67pct, mainly due to rising costs such as raw materials and the climbing period of new PET production capacity in Malaysia. The company adopts lean production to reduce costs and price increases for some products to stabilize gross profit margin.
The expense rate of 2022H1 company is 11.90% (- 3.71 pct), of which the sales expense rate is 4.65% (+ 0.26pct), and the management expense rate is 6.38% (+ 0.69 pct). The increase of management fee is mainly due to the increase of equity incentive expenses and the salary of managers. The R & D expense rate is 4.68% (+ 0.16 pct), and the financial expense rate is-3.81% (- 4.82 pct). The decrease in financial rates is mainly due to the increase in exchange gains.
The whole industry chain-global layout builds competition barriers, and capacity construction continues to advance. The company is the only enterprise in the industry that has creatively opened the whole industry chain business of "plastic recycling-recycling-recycling". At present, the food-grade recycled particles in the 50, 000-ton PET project in Malaysia have been successfully put into production in 2022Q2, while the first phase of Vietnam's annual production of 2.27 million boxes of frame and wire rod has also been put into production in June.
At the same time, the company has planned a high-quality recycling project for more than 100000 tons of plastic bottles in Malaysia, which will contribute to the increment in the future.
Profit forecast: according to the adjustment of profit forecast and target price, the estimated net profit from 2022 to 2024 is 3.01 / 3.25 / 394 million yuan, and the current stock price corresponds to 23.5 / 21.8 / 18.0x respectively. Maintain a "buy" rating.
Risk tips: lower downstream demand, rising prices of raw materials, overseas policy risks
