We have analyzed the financial report of Yongxin shares before, and now they have released their annual report for 2023, so let's take a look at it again. Huangshan Yongxin Co., Ltd. (hereinafter referred to as Yongxin Co., Ltd.) was established in May 1992 and listed on the main board of the Shenzhen Stock Exchange in July 2004.
Yongxin Co., Ltd. mainly produces and operates high-tech products such as plastic color printing composite flexible packaging materials, functional packaging materials, special-shaped injection packaging, blister materials and new inks, involving food, medicine, daily chemicals, electronics, aviation and other fields, and is a leading enterprise in China's packaging industry.
From the perspective of its revenue composition, "plastic flexible packaging film" is its business with a high growth rate, and the proportion has also increased, reaching 155%；"Color printing and packaging materials" is its core business, and in 2023, it will maintain the revenue scale of 2022, accounting for a slight decline, but it is still the largest business accounting for more than three-quarters; Other businesses are similar to "color printing and packaging materials", which are basically stable or the amount is small, and the impact is limited.
In 2023, Yongxin's revenue will increase by 23%, net profit increased by 125%, both hitting new highs. However, the growth rate, especially the growth rate of revenue, has been slow, even slower than the growth rate of domestic GDP in the same period.
Although the domestic market is still the main market for nearly ninety percent of Yongxin's shares, its growth rate is only 12%, and the growth is only slightly higher than that of the international market. It seems that the domestic ceiling has appeared, and the expansion of the international market may also have a big problem, because the unit price of the products operated by Yongxin shares is not too high, after deducting transportation costs, etc., the international "comparative advantage" of its products may not be too large.
In terms of quarters, from the second quarter of 2022 to the third quarter of 2023, the performance of these six quarters has been quite good, with year-on-year growth in revenue and higher growth in net profit, and the net profit growth rate in each quarter has exceeded 10%. The performance in the fourth quarter of 2023 is relatively poor, and the revenue has also shown a year-on-year situation**, and the net profit growth is also less. If this is only a quarterly or temporary situation, it is fine, otherwise, growth in 2024 could slow further.
Gross profit margin rebounded sharply in 2023 after declining in the previous two years and hit a new high in recent years, which was the main reason for its profitability improvement in 2023. The net sales margin curve is basically parallel to the gross margin curve, and the two curves have been close in the first two years, and they seem to be expanding again in 2023. Although the return on equity has the ** in 2021, it is generally in a state of continuous growth, with 17The level of 7% is considered to be a relatively good performance in the industry.
The main reason for the change in profitability is the gross profit margin, that is, the fluctuation of the ratio of operating costs to revenue, during which expenses will fall to less than 10% in 2022, and will rebound in 2023.
In terms of other income, asset impairment losses have increased significantly in the past two years, and in 2023, these losses will basically offset the income from investment income and subsidies, and in general, the impact of other income on net profit is small.
In terms of quarters, after the gross profit margin continued to rise, it will be ** in the fourth quarter of 2023, combined with the situation in the fourth quarter of 2022, it seems that from 2024, it is more likely to continue the original level. The profitability of the main business continued to improve, and it was still the first in the fourth quarter, and the expenses during the quarter were evenly averaged, and the main influencing factor for the profitability of the main business was the gross profit margin.
The performance of cash flow is relatively good, the net cash flow of operating activities continues to be stable, and it can basically meet the needs of its fixed asset investment, but Yongxin shares are still relatively active in financing, and the addition and subtraction of financing are still done. In 2023, they have significantly reduced their investment in fixed assets, and combined with their slower growth revenues, it seems that they are also psychologically accepting of slower growth in the future.
The long-term and short-term solvency of Yongxin shares is very strong, and there do not seem to be too many problems worth talking about in this regard.
For companies like Yongxin that are engaged in traditional industries and their growth has begun to slow down, it is necessary for us to look at their distribution relationship. In recent years, Yongxin's net profit for employee compensation expenses has continued to grow, but tax revenue will also increase in 2023 after declining in the previous two years.
Considering the decline in the scale of fixed asset investment and the increase in net profit in 2023, if the scale of fixed asset investment in Yongxin shares is still small in 2024, the tax will increase significantly.
Yongxin shares will perform well in 2023, and they can be regarded as relatively excellent enterprises in traditional industries. However, the slowdown in revenue growth is a problem that it needs to solve, and it is obviously unrealistic for such traditional enterprises to continue to grow at a high speed, but at least they must keep up with the growth rate of GDP in the same period in order to be in a state where their status is basically unchanged. As for the fact that slower growth will affect the market ** changes calculated by the relevant valuation model, this is not what financial people are good at, so leave it to those professionals in **.
Disclaimer: The above is a personal analysis and does not constitute investment advice to anyone!