I. Overview of events
On August 28, the company released its semi-annual report for 2020. During the reporting period, the company realized operating income of 2.521 billion yuan, down 1.73% from the same period last year, and realized net profit of 86.7689 million yuan, an increase of 72.32% over the same period last year. Achieve basic earnings per share of 0. 5%. One yuan. Of this total, revenue in the second quarter was 1.535 billion yuan, an increase of 33.94 percent over the same period last year, and the net profit was 73.5562 million yuan, an increase of 139.44 percent over the same period last year.
II. Analysis and judgment
Actively adjust the business strategy, and the performance increased significantly in the second quarter.
Affected by COVID-19 's epidemic situation, raw material price fluctuations and two-way exchange rate fluctuations, the company's performance declined significantly in the first quarter. The revenue in the first quarter was 986 million yuan, down 30.56% from the same period last year, and the net profit was 13.2126 million yuan, down 32.71% from the same period last year. In this regard, the company actively adjusts its business strategy to promote performance growth by promoting regional coordination, optimizing product capacity structure and strictly controlling cash flow. In the second quarter, revenue reached 1.535 billion yuan, an increase of 33.94 percent over the same period last year, and net profit reached 73.5562 million yuan, a substantial increase of 139.44 percent over the same period last year.
The gross profit margin rises, the expense rate decreases, and the net profit doubles
During the reporting period, gross profit margin rose 2.40pct to 15.25%. During the period, the expense rate was 9.07%, down 0.34% from the same period last year. Among them, the sales expense rate increased by 0.09pct to 3.88%, the management expense rate increased by 0.86pct to 4.92%, and the financial expense rate increased by 0.27%, a decrease of 1.29pct over the same period last year, mainly due to the reduction of total financing and cost during the reporting period. The R & D expense rate increased by 0.8pct to 2.06%. The net interest rate was 4.50%, double that of 2.11% in the same period last year.
Optimize production capacity layout and keep high-quality customers
The company continues to consolidate the production capacity layout of the domestic economically active areas, strengthen the cooperative relationship through close spatial dependence with the core customers, and provide fast services combined with the product characteristics and quality needs of the core customers. The company has established long-term and stable cooperative relations with domestic and foreign well-known fast consumer brand customers such as Coca-Cola Company, PepsiCo Inc, Budweiser, Tsing Tao Beer, Snow Beer, Wang Laoji, Wa, etc., and the number of high-quality customers is in the forefront of the industry.
III. Investment suggestions
At present, the competition pattern of the two-piece can market has improved significantly, and it is expected to open up the flexibility of the company's performance in the future. The company is expected to achieve basic earnings per share of 0.27, 0.39 and 0.48 yuan per share in 20, 21 and 22 years, corresponding to PE times that of 29-20-16. Considering that the current TTM valuation of the packaging and printing sub-sector of the light industry industry is 37 times, covering for the first time, the company is given a "recommended" rating.
Fourth, risk tips:
Exchange rate fluctuation risk, raw material price fluctuation risk