The company released the 2023 annual report and the 2014 quarterly report
In 24Q1, revenue of 238 million yuan increased by 27.7%; due to the mother of 0.22 million yuan, the same increase of 76.3%, after deducting only 119 million yuan, the same increase of 58.8%; the increase in revenue performance was mainly due to increased orders for security gloves, optimization of sales product structures, and an increase in sales volume of high-value-added products.
Currently, the company has sufficient orders to meet the company's current production capacity requirements. With the steady release of 72 million tons of functional safety gloves production capacity (two PU production lines have already been put into trial production), the company's ability to absorb security glove orders will improve; as of 2024Q1, the company's main profit contribution comes from the security gloves basic sector.
23Q4 revenue was 282 million yuan, up 35.5%; net profit to mother was 0.13 million yuan, down 37.9%; net profit from non-return to mother was 0.1 million yuan, down 48.1%; 23A revenue of 977 million yuan, up 9.4%; net profit to mother was 106 million yuan, down 13.1%; deducted from non-return mother of 82 million yuan, same decrease of 5.6%.
In 2023, the company plans to distribute cash dividends of 36.3936 million yuan, with a dividend rate of 34.4%.
By product, revenue from functional safety gloves in '23 was 940 million yuan, up 6.4%, with a gross profit margin of 25.6%; revenue from ultra-high molecular weight polyethylene fibers and composites was 0.29 million yuan, with a gross profit margin of 1.7%; and other revenue was 6.82 million yuan, a decrease of 20.3%.
The gross profit margin for 23 was 25.1%, an increase of 0.1 pct; the net profit margin was 11.4%, a decrease of 2.7 pct23, a total annual rate of 13.0%, and an increase of 1.5 pct. Among them, the sales rate was 3.2%, an increase of 1 pct, mainly due to an increase in marketing team remuneration and expenses related to participation in domestic and foreign exhibitions in '23; the management fee rate was 4.7%, a decrease of 0.7 pct, mainly due to the higher service fees of intermediaries related to management consulting in the previous year; the financial rate was 0.1 ct, an increase of 1.4 pct; and the R&D rate was 5.1%, or 0.2 pct.
Promote the functional safety gloves project and the new material project construction company to accelerate the construction and production line run-in of the subsidiary Hengshang Materials' “Ultra Fiber New Material and Functional Safety Protective Equipment Development and Application Project”, breakthroughs in process preparation technology, and improving production line quality and efficiency. The company's ultra-high molecular weight polythene fiber production capacity has reached 2,400 tons at full load.
With the release of production capacity of ultra-high molecular weight polyethylene fibers and their composites, the company will become one of the few domestic large-scale manufacturers of ultra-high molecular weight polyethylene fibers and their composites, and has a full industrial chain layout on the production and application side of the ultra-high molecular weight polyethylene fiber industry.
The company accelerated the construction of the Henghui Security Industrial Park project. The first phase of the industrial park's “72 million functional safety gloves project”. As of April 23, the project main construction project and public works had been completed and accepted, and the core production equipment had entered. The first batch of 4 butadiene production lines and 8 PU production lines were undergoing installation and commissioning according to the established schedule. Among them, the first PU production line has already been put into mass production. The 2nd PU production line and the 1st butyl production line are in the process of intense testing. After the test run is completed, the production line will be closed. Officially Put into operation.
The second phase of the industrial park's strategic new materials project with an annual output of 12,000 tons of ultra-high molecular weight polyethylene fiber project was officially launched. As of April 23, the company had completed the overall planning and design of the project, research and verification, and EIA approval, and is currently carrying out energy assessment and further design work.
Establish a complete domestic and foreign dual market sales system
In terms of developing the export market, on the basis of stabilizing the original market share and competitive advantage in the North American and European markets, the company has increased its efforts to develop emerging export markets, deepened customer cooperation in countries and regions such as Australia, Turkey, and Northern Europe, and strengthened the channel layout for core products. In terms of developing the domestic sales market, the company has further optimized and integrated its own brand marketing plan, strengthened the overall layout of major customer channels for industrial products and distribution and wholesale channels, and has formed a relatively complete marketing network foundation.
Adjust profit forecasts to maintain “buy” ratings
In the future, the company will deeply cultivate the basic industry of functional safety gloves, become the world's leading manufacturer of functional safety gloves, reshape the growth of the security glove industry with its digital intelligent manufacturing capabilities; establish a complete global supply chain and sales system with low production costs, high operational efficiency, continuous product innovation and business model innovation, and actively promote industry concentration.
The company has a long-term layout of the new polymer materials business. With technical advantages, industrial chain collaboration advantages and customer advantages, the company has achieved R&D and production implementation of high-end ultra-high molecular weight polyethylene fiber products; grasps the industry's oversupply window period, accelerates production capacity investment, and strengthens the breakthroughs and layout of channels in various segments; and accelerates product exploration in emerging scenarios through technology research and development+technical cooperation. Integrate into the country's general development trend and make a difference in the national strategy — incubate biodegradable polyester rubber.
Considering the company's sufficient orders and the increase in sales of high-value-added products, we adjusted our profit forecast. The company's net profit for 24-26 is 1.95/2.79 billion yuan (the previous value was 1.90/241 million yuan, respectively), EPS was 1.34/1.91/2.47 yuan/share, respectively, and the corresponding PE was 15/11/8X, respectively.
Risk warning: macroeconomic fluctuation risk; market competition risk; raw material and energy price fluctuation risk; exchange rate fluctuation risk; management risk, etc.