Jinjia (002191) Annual Report Comments: Steady Growth in Performance and Construction of a Three-Year Plan
Event description In 2018, Jinjia shares achieved revenue / net profit attributable to mothers / non-net profit 33.
92 ppm, a ten-year increase of 14.
56% / 26.
27% / 26.
45%; single Q4, to achieve revenue / net profit attributable to mother / deduct non-net profit9.
72 ppm, an increase of 17 in ten years.
9% / 29.
37% / 35.
The event commented on the cigarette label and the color box went all out, and the revenue in 2018 increased by 14.
In terms of categories, the main categories of cigarette label / color box / laser packaging business have grown for ten years.
05% / 67.
09% / 4.
62% to 25.
08,000 yuan, and the contribution to income was 6.
Among them, 1) Tobacco label business: The high-end trend of cigarettes has accelerated the company’s market share.
According to the data for the first three quarters of 2018, the proportion of Class I and II cigarettes reached 42%, an increase of 4 pct. The company focuses on high-end cigarette labels, and has the ability to operate from the raw material to the entire industry chain. The revenue of cigarette label business is growing faster than the industry (2018The annual cigarette output was affected by destocking, and fell by 0 in a year.
4%), the company’s market share has steadily increased; 2) Color box business: The rapid volume of fine cigarette cases and wine bags business is an important engine for the company’s revenue growth.
In the field of color box packaging, the company focuses on boutique cigarette boxes, wine bags and 3C packaging.In 2018, the company maintained packaging for well-known customers such as “China (Jinzhongzhi)”, “Moutaiol”, “Yanghe” and otherContinue to expand market development, become a qualified supplier of British American Tobacco, PMI, and provide external packaging for “Jinjiu” and “Jiang Xiaobai”.
The growth rate of premium cigarette cases and wine bags in 2018 were above 90% (disclosed in January 2019 by investor exchange activities), and the growth rate of 3C packaging was around 5%, mainly because the company adjusted its product structure in response to market changes; 3) Laser packaging: The growth rate of the company’s laser packaging in 2018 was slightly distorted, mainly due to force constraints. With the gradual completion of the expansion project of China Toyota (laser packaging material supplier), it is expected that future performance growth will enter a rapid upward range.
From the fourth quarter alone, the company’s revenue increased by 17.
9%, in the context of current tobacco destocking (the fourth quarter of 2018 saw a decrease in cigarette production and a drop of 8).
64%), Jinjia’s outstanding design and production strength, still maintained steady growth.
Net profit grew steadily, with high dividend payout ratios highlighting investment value.
The company’s attributable net profit increased by 26 in 2018.
27%, faster than revenue growth, mainly due to the company’s increase in net interest rate.
Gross profit margin: The company’s gross profit margin fell by 0.
45pct to 43.66%, mainly due to the increase in the proportion of low gross margin color boxes.
However, from the perspective of a single category, its gross profit margin has still improved by different margins: the gross margin of cigarette labels / laser packaging / color boxes has increased by 0.
34pct. Among them, the increase in the gross profit margin of color boxes is mainly due to the increase in the proportion of premium cigarette cases and wine bags with relatively high profit margins. At the same time, with the increase of production capacity, manufacturing amortization costs have been effectively reduced.
In terms of expense ratio, the company’s three expense ratios decreased by 1 year-on-year in 2018.
21pct, the sales / management / financial expense ratio decreased by 0.
52pct, of which, the financial expense ratio has improved greatly, mainly due to the increase in interest income and the company’s return of short-term loans.
In terms of investment income, the company’s investment income increased by 125% to 0 in 2018.
US $ 7.9 billion, mainly from financial management income and contributions from companies such as Chongqing Hongsheng and Shenren Packaging.
In 2018, while the company achieved great results, the dividend ratio also reached 92.
25%, the investment value is obvious.
Published a three-year strategic development plan (2019-2021) to clarify the development strategy for large packages and new tobacco.
From the target, the company plans to maintain the leading layout of the packaging industry in the next three years, realizing profits, scale, and stock market value among the forefront of the industry; 2) annual double-digit growth in net profits; 3) shareholders’ netThe proportion of profits is not less than 50%.
In order to achieve this goal, the company will deeply cultivate the main business of packaging, develop product systems for cigarette labels, 无锡夜网 wine bags and other packaging, continue to improve the intelligent design of packaging and the development of new materials, and ensure the steady development of the main business;We will cooperate with domestic and foreign partners and key customers to vigorously develop the research and development, production, and marketing of new tobacco such as HNB appliances and electronic cigarettes.
Binding the core customers in the tobacco and alcohol industry, Jinjia accelerated the implementation of its large packaging strategy.
As a leader in the cigarette label industry, the company has now entered 19 China Tobacco’s packaging industry chain; in series, the company accelerated the expansion of color box business and entered the fields of wine bags, boutique cigarette boxes, 3C packaging, etc.The level of automation and 杭州桑拿网 automation has been upgraded. The company’s color box design and manufacturing capabilities are continuously improving.
Driven by this, the company strategically entered into Shenren Packaging and cut into the Moutai packaging supply chain in 2017. This round of entering the Wuliangye packaging system also confirmed the production and service strength of the company’s color box business.
The company’s color boxes achieved revenue in 20184.
4.6 billion, an increase of 67.
At 09%, we judge that due to the continuous enhancement of its own strength and endorsement of high-quality customers, the company is expected to accelerate the expansion of new customers and new products, and the high growth of color boxes in the future can be expected.
Strengthen cooperation to accelerate the layout of new tobacco fields.
In the field of new tobacco, the company teamed up with Yunnan Tobacco (the largest exporter of heated non-combustible tobacco in China) and established a “Jiayu Technology” with Yunyan Technology’s wholly-owned subsidiary Huayu Technology to manufacture smoking products; meanwhile, the company was also established with Xiaomi”Yinwei Technology” has greatly improved the R & D and design capabilities of smoking products. At present, new tobacco products such as foogo have been launched.
China is active in the area of new tobacco policy. For example, the China Tobacco Conference in July this year proposed to re-formulate new tobacco standards, and China Tobacco has already been under development.
Optimistic about the company’s merger with China Tobacco’s channel and product advantages, and take the lead in matching research and development with China Tobacco to cut into the new tobacco market.
Investment suggestion: The main business of the tobacco label is steadily improving, the large packaging business is gradually getting better, the new tobacco has opened up room for growth, and it will continue to maintain a “buy” rating.
As the domestic leader in privately-owned cigarettes, the company’s main business has performed steadily in the past two years, with good cash flow and low financial leverage. It keeps close to the major customers of China Tobacco and Alcohol and continues to extend its business, which is extremely scarce in the stock.
Among them: in the main packaging industry, benefiting from the resumption of cigarette label growth and the continuous advancement of large packaging business, the company’s revenue and performance are expected to continue to grow steadily and rapidly. Based on the advantages of “front-end design + subsequent packaging processes”, category and customer expansionIt is a mid-to-long-term point of view for the traditional main business; at the same time, the company actively deploys new tobacco business to support the innovative development of the tobacco industry. If the subsequent new tobacco policy is gradually clear and implemented, the company is expected to expand its business and bring more development space.
The company’s early dating of strategic investors with a state-owned asset background escorted integration and innovation.
We expect the company’s net profit to be returned to its parent in 2019-2021.
49 ppm, corresponding to PE23 / 19 / 16X, maintaining the “Buy” level.
Risk Warning: 1.
Color box customer expansion was less than expected; 2.
Increased smoking in China is dragging down cigarette demand.