Event description:
In the first quarter of 2021, the company achieved operating income of 195 million yuan, an increase of 19.22% over the same period last year, and a net profit of 31 million yuan, an increase of 15.45% over the same period last year.
Event comments:
Product upgrading drives performance growth. After the outbreak of COVID-19, the social demand for healthy air filtration has increased. relying on the accumulation in the field of filter materials in the past three decades, the company has accelerated the research and development of antiviral, antibacterial and multi-functional filter materials. launch a new type of filter material with antiviral efficiency greater than 99%, and achieve product upgrading. In the first quarter of 2021, the demand for the replacement of traditional products by high-end filter materials with anti-virus and other functions continued to increase, and the scope of application continued to expand, leading the company to achieve rapid revenue growth in the first quarter.
The gross profit margin and net profit margin were basically stable, and the rate of sales expenses decreased. In the first quarter of 2021, the company's gross profit margin was 34.62%, up 0.24pct from the same period last year; the net profit rate was 16.09%, down 0.53pct from the same period last year, basically stable. Due to the impact of the change in accounting standards, the company adjusted the transportation fee to the contract performance cost, resulting in a year-on-year reduction of 3 million yuan to 6 million yuan in sales expenses and 2.45pct to 3.18% in sales expenses compared with the same period last year. Due to the decline in demand for meltblown cloth, the decrease in advance collection and the increase in investment in fixed assets, the company's operating net cash flow decreased by 32 million yuan to 3 million yuan compared with the same period last year, basically the same as 2019Q1.
The five major business departments are working together, waiting for the release of demand in many areas. The company promotes the establishment of five major business departments: home appliances, big health, big consumption, mobile transportation and advanced materials. In the context of the increasing demand for high-end filter materials, the scope of application of terminal products is expected to continue to expand, driving the release of demand in many fields.
Investment rating and valuation: we expect the company's 2023 net profit to be 1.11max / 2022max / 158m in 2023, corresponding to PE's 22-18-15 times, maintaining the "recommended" rating.
Risk tips: downstream industry boom fluctuation risk; raw material price fluctuation risk; new product market expansion progress is not as expected; epidemic repeated risk.