Core views:
The company published its 2021 annual report and 2022 quarterly report. The company achieved revenue of 3.840 billion yuan in 2021, an increase of 59.07% over the previous year, and achieved net profit of 226 million yuan to the mother, an increase of 28.50% over the previous year.
22Q1 achieved revenue of 1,074 million yuan, an increase of 51.26% over the previous year, and net profit of the mother was 68 million yuan, an increase of 11.85% over the previous year.
Production and sales of main products increased year-on-year in 22Q1, and raw material costs rose. According to the company's operating data announcement, 22Q1 film-based tape, paper-based tape, cloth tape and OPP film achieved revenue of 558 million yuan, 250 million yuan, 127 million yuan and 32 million yuan respectively. Among them, film-based, paper-based and cloth tape grew 75.7%, 27.6%, and 5.1% year-on-year sales, respectively. The average sales price fluctuated 2.9%, 5.0% and -3.6%, respectively. In terms of raw materials, the average purchase prices of OPP film, particles, butyl ester, pulp and PVC powder increased by 0.4%, 25.9%, 2.4%, 7.2%, and 26.1% respectively in 22Q1. In the face of a sharp rise in raw material prices and severe shipping conditions, the company responded positively, and its profitability was relatively stable.
The project was implemented in an orderly manner, and it can be expected to boost the high-end tape market in the future. According to the annual report, the second BOPP laminating line is already in trial operation; the wire harness, medical tape project, Jiangxi Yongguan Intelligent Manufacturing Industry Upgrading Phase I Technical Improvement Project, Shandong Yongguan New Packaging Materials and Adhesive Material Intelligent Production Project are also expected to be ready for use in 22Q1. The company will continue to develop functional film materials such as consumer electronics adhesives, functional protective films, OCA optical films, and new automotive adhesive materials in the future. The high-end tape market space is large, the added value is high, and the company's development prospects are promising.
Profit forecasts and investment recommendations. The company's earnings per share in 22-24 are expected to be 1.79 yuan, 2.56 yuan, and 3.02 yuan respectively. The price-earnings ratio corresponding to the current stock price is 10 times, 7 times, and 6 times. Referring to the valuation level of comparable companies, considering the company's business structure and performance growth rate, the PE valuation was given 16 times the company's 22-year performance. The reasonable value of the corresponding company was 28.70 yuan/share, maintaining the “buy” rating.
Risk warning. Prices of tape products have fallen sharply; downstream demand is sluggish; international trade frictions have intensified, and there is a risk of exchange rate fluctuations; the progress of projects under construction has fallen short of expectations; and major safety and environmental incidents.