The company publishes its semi-annual report for 2020. 20H1's revenue was 2.29 billion yuan, down 33.8% from the same period last year, and its net profit was 240 million yuan, down 24.8% from the same period last year. 20H1's gross profit margin is 23.0%, 7.4% higher than the same period last year for 2.5 PCT; periods, 11.8% higher than the same period last year for 1.0 PCT;, and 1.1% higher than the same period last year.
The decline in textile business income is mainly due to the outage of the epidemic and the cutting of orders downstream. 20H1 revenue from textile business was 1.29 billion yuan, down 28.4% from the same period last year, of which printing and dyeing revenue was 1.07 billion yuan, down 32.6% from the same period last year.
The decline in textile revenue was lower than that of printing and dyeing, mainly due to the high demand for wipes and protective clothing in the non-woven business, with a total profit of 41.27 million yuan, four times that of the same period last year. In addition, the 20Q2 revenue of printing and dyeing was 590 million yuan, down 31.6% from the same period last year. The revenue from 20Q1 was 490 million yuan, and that of 20Q1 was 33.8% lower than the same period last year. Looking forward to the second half of the year, due to the easing of the overseas epidemic, the company's printing and dyeing business is expected to gradually pick up, driving the textile business to pick up. In addition, the gross profit margin of 20H1 textile business was 22.4%, a decrease of 1.9 PCT, over the same period last year, mainly due to an increase in fixed fees as a share of income.
The decline in gold business income is mainly due to weak mobile sales in the peak season. The revenue of gold jewelry 20H1 was 810 million yuan, down 45.6% from the same period last year, of which 20Q2 revenue was 400 million yuan, down 34.9% from the same period last year. 20Q1 revenue was 410 million yuan, down 53.0% from the same period last year. 20H1 sales were 17.2%, down 47.5% from the same period last year. Asp was 4700 million yuan / ton, up 3.7% from the same period last year; gross profit margin was 17.2%, up 6.1 PCT from the same period last year. The rise in ASP is mainly due to the upward price of gold, while the increase in gross profit margin is mainly due to the increase in the proportion of fine goods.
Looking forward to the second half of the year, gold consumption is expected to recover during special periods such as rising gold prices and National Day.
The performance from 2020 to 2022 was 0.63 yuan per share, 0.75 yuan per share and 0.81 yuan per share, respectively. The company's current stock price corresponds to 20-year PE9.3 times, and with reference to the average PE (TTM) of the past three years, the company values PE in 2020 at 11 times (the aviation gold business also belongs to the processing business and contributes low profits, so the merger valuation), and the corresponding fair value is 6.9yuan per share, maintaining the "buy" rating.
Risk tips. Risks such as sluggish demand and non-fulfillment of 18-year restructuring agreed performance commitments