Event: the company released its annual report for 2021. During the reporting period, the company achieved revenue of 1.12 billion yuan, an increase of 44.55% over the same period last year; net profit of 145 million yuan, an increase of 30.18% over the same period last year; and basic earnings per share of 0.4 yuan per share. Among them, the company's revenue in the fourth quarter was 327 million yuan, an increase of 28.62% over the same period last year, and the net profit was 29 million yuan, down 20.51% from the same period last year.
The sharp rise in the price of raw materials led to a decline in gross profit margin. During the reporting period, the company's comprehensive gross profit margin was 28.56%, down 2.62% from the same period last year. The company's gross profit margin declined, mainly because: during the reporting period, due to the impact of rising prices of base paper, crude oil and other commodities, the cost of raw materials for the company's products rose sharply, which was higher than the growth rate of revenue.
The effect of cost control is prominent, and the net interest rate is slightly lower than the same period last year. During the reporting period, the company's expenses improved significantly, with the expense rate of 13.64% during the period, down 1.23% from the same period last year. Among them, the sales expense rate was 1.88%, down 0.24% from the same period last year; the management expense rate was 7.06%, down 0.51% from the same period last year; the financial expense rate was 1.31%, down 0.47% from the same period last year; and the R & D expense rate was 3.39%, down 0.01% from the same period last year. In terms of net interest rate, due to the decline in gross profit margin, the company's net profit rate during the reporting period was 12.73%, down 0.9% from the same period last year.
Industrial paper packaging is growing rapidly, and composite plastic packaging continues to grow at a high rate. Based on industrial paper packaging, the company horizontally expands composite plastic packaging to build the second growth curve. During the reporting period, the company's revenue from industrial paper packaging reached 753 million yuan, an increase of 29.14% over the same period last year; revenue from composite plastic packaging reached 277 million yuan, an increase of 93.22% over the same period last year, and the proportion of revenue further increased to 24.77%, an increase of 6.24% over the same period last year.
Deep binding Miaoke Landuo, fully benefit from the growth of the cheese industry. According to Euromonitor data, the market size of China's cheese industry reached 12.273 billion yuan in 2021, and it is expected to continue to grow with 14.65% CAGR in the next five years, and reach 24.313 billion yuan in 2026. Miao Ke Landuo ranks first in the cheese industry, with a market share of 27.7%. The company is deeply bound with Miao Ke Landuo and is expected to maintain rapid development in the future.
Investment suggestion: the company is the leader of China's packaging industry, the industrial paper packaging is developing steadily, and the composite plastic packaging is bound to the leading enterprise of the cheese industry, which is expected to maintain high growth in the future. it is expected that the company will be able to achieve basic earnings per share of 0.56 / 0.74 / 0.94 yuan per share in 2022-23-24, corresponding to PE as 17X/ 13X/ 10X, covering for the first time and giving a "recommended" rating.
Risk hint: the risk that economic growth is less than expected; the risk of intensified market competition.