Event description
According to the company's three-quarter report of 2022, the company's revenue in the first three quarters of 2022 was 7.552 billion yuan, down 0.29% from the same period last year; the net profit was 433 million yuan, up 0.53% from the same period last year; and the net profit after deducting non-return was 373 million yuan, down 12.91% from the same period last year. In terms of cash flow, the net cash flow generated by operating activities was 473 million yuan, a decrease of 32.64% over the same period last year, mainly due to the decrease in cash received by the company for selling goods and providing labor services during the reporting period, as well as the increase in the payment of bank acceptance bills over the same period last year. In a single quarter, the company's revenue in 2022 was 23.53 Q1/Q2/Q3 2.27 billion yuan, compared with the same period last year, which was + 4.41%, 13.24%, 9.41%, respectively, and the net profit was 1.21, 1.11, 200 million yuan, respectively, compared with-2%, 46.05, 99.43%.
Analysis and judgment:
Revenue side: the volume and price of aluminum and plastic film business have risen.
In 2022, Q3, the company achieved revenue of 2.628 billion yuan, an increase of 9.41% over the same period last year and 15.78% month-on-month growth. According to specific products, in the first three quarters of 2022, the company produced a total of 3.175 billion PET bottles, sold 3.298 billion PET bottles, produced 8.53 billion PET bottle embryos, sold 8.621 billion PET bottle embryos, and achieved a total sales income of 1.311 billion yuan (excluding tax) for PET bottles and PET bottle embryos. The company produced 15.951 billion crown covers, sold 15.968 billion, produced 430 million square meters of plastic labels and sold 429 million square meters. Crown cover and label business achieved a total sales income of 1.118 billion yuan (excluding tax). The company has produced 10.155 billion plastic anti-theft caps and sold 10.138 billion, achieving a sales income of 406 million yuan (excluding tax). The company produced 710 million printing color paper packaging printing, sold 703 million printing, achieved sales income (excluding tax) 1.344 billion yuan. The company produced 1.178 billion bottles of OEM drinks and sold 1.17 billion bottles, achieving a sales income of 624 million yuan (excluding tax). In terms of aluminum and plastic film business, the company produced a total of 29.9418 million square meters, an increase of 64.59 percent over the same period last year; sales of 28.305 million square meters, an increase of 83.95 percent; prices increased by 2.2 percent over the same period last year; sales revenue (excluding tax) reached 470 million yuan, an increase of 87.93 percent over the same period last year.
Profit side: increase in net interest rate
In terms of profitability, in the first three quarters of 2022, the company achieved a gross profit margin of 20.67%, down 1.33pct from a year earlier, while net profit increased by 0.25pct to 6.65% year-on-year. On a quarterly basis, Q3's gross profit margin fell 1.55pct to 20.91% year-on-year in 2022, net profit margin increased by 3.6pct to 8.26% year-on-year, and 2.59pct increased from a month earlier. In terms of fees, the quarterly fee rate of the company before 2022 was 12.89%, down from the same period last year by 0.06pct. Among them, the sales expense rate was 2.23%, which decreased by 0.18pct compared with the same period last year. The management fee 6 has a 9% rate of .3, an increase in 0.11pct compared with the same period last year. The financial expense rate was 1.01%, a decrease in 0.13pct compared with the same period last year. The rate of R & D spending increased by 0.14pct to 3.26% compared with the same period last year. In addition, the company's investment income increased by 317.67% year-on-year, mainly due to the disposal of other non-current financial assets (Shanghai Digital Information Technology Co., Ltd.) during the reporting period, compared with no in the same period last year.
Investment suggestion
We are optimistic about Zijiang enterprises. as the leader of the domestic package printing industry, the company has been an excellent supplier to Coca-Cola Company, PepsiCo Inc, Unilever and many other well-known enterprises at home and abroad. The company is the earliest enterprise in China to develop aluminum-plastic film technology and has the production capacity, and its development process is closest to that of Japanese and Korean aluminum-plastic film enterprises, and it has the conditions to become a domestic aluminum-plastic film leader. Benefiting from the rapid development of domestic substitution and downstream new energy vehicle industry, the new capacity of the superimposed company is released, and the performance is expected to continue to grow rapidly. We keep our profit forecast unchanged. From 2022 to 2024, the revenue is 100.39 and 116.25 billion, respectively, and the EPS is 0.38, 0.47 and 0.58 respectively. Corresponding to the closing price of 5.01 yuan per share on October 27, the PE is 13.23, 10.63 and 8.63X, respectively. Maintain the company's "buy" rating.
Risk hint
1) macroeconomic fluctuations lead to lower-than-expected downstream demand; 2) changes in raw material prices lead to a decline in corporate profitability; 3) emerging business development is not as expected.