Recently, Xianhe Co., Ltd. (603733. At the same time, the company continues to increase R&D investment, and the two major investment projects of Guangxi Laibin and Hubei Shishou are steadily advancing, and the layout of the whole industrial chain is becoming more and more perfect, laying a solid foundation for larger-scale expansion and development.
Revenue and non-net profit both increased
The main business of Xianhe Co., Ltd. is the research and development, production and sales of high-performance paper-based functional materials and their pulp raw materials and chemical raw materials, the company produces a wide range of paper-based functional material products, mainly divided into six series of more than 60 varieties, including food and medical packaging materials series, tobacco industry supporting series, home decoration materials series (joint venture company Xia Wang Paper products), business communication and publishing printing materials series, electrical and industrial paper series, daily consumption series, etc., diversified layout advantages.
In terms of performance, in 2023, Xianhe Co., Ltd. will achieve revenue of 8.553 billion yuan, an increase of 10.53% year-on-year, a net profit attributable to the parent company of 664 million yuan, a net profit of 595 million yuan, an increase of 6.81% year-on-year, and a gross sales margin of 11.62%, an increase year-on-year.
In the annual report, Xianhe Co., Ltd. reviewed its operation in 2023 and said that the performance growth is related to factors such as the company's adaptation to demand, cultivating new markets, and participating in international competition.
In terms of new business, in April 2023, the 300,000 tons of food cardboard raised by Xianhe Co., Ltd. was officially put into operation. Based on the company's years of accumulation and understanding of customers, this product has gained a good reputation after its launch, and its profitability has improved significantly compared with the initial stage. In addition, Xianhe Co., Ltd. also conforms to the demand for degradable food packaging materials under the improvement of public living standards, expands the production capacity layout of related products, and in 2023, the company's production volume of food and medical consumer products will reach 264,800 tons, a year-on-year increase of 63.37%, and sales will reach 229,800 tons, a year-on-year increase of 49.01%.
In addition, with the increase in the use of high-performance capacitors, Xianhe has become an important supporting enterprise for the production of electronic component materials, with the sales of electrolytic capacitor paper-based materials reaching more than 5,100 tons in 2023, and the sales revenue of sales revenue increasing by 12.35% year-on-year;
In terms of overseas business and R&D, in 2023, Xianhe Co., Ltd. expanded its layout in global markets such as Europe, Southeast Asia, and the Middle East, with an annual export business revenue of RMB 574 million. R&D as the cornerstone of sustainable development has been the strong investment of Xianhe shares, in the trend of environmentally friendly paper-based packaging materials to replace plastic products, Xianhe shares are committed to the research and development of new paper instead of plastic products, and at the same time in tobacco packaging and other traditional industries to comply with the direction of market development, and actively cooperate with end customers to provide innovative cooperation solutions. In 2023, the company applied for a total of 45 patents, of which 20 are invention patents and 25 are utility model patents, and has obtained 9 patent certificates, and the R&D expenses incurred during the year were 113 million yuan, an increase of 8.53% year-on-year.
A series of layout and business measures have brought about a positive situation of production and sales of Xianhe shares. According to the disclosure, the output of paper-based functional materials in 2023 will be 1.0424 million tons, a year-on-year increase of 25.98%, and the sales volume will reach 971,300 tons, an increase of 159,500 tons over last year, a year-on-year increase of 19.65%.
Two major investment projects of 10 billion yuan are expected to be put into operation within the year
In order to further expand the main business and implement the construction of the whole industrial chain of "integration of forest, pulp and paper", Xianhe Co., Ltd. launched two investment projects of "high-performance paper-based new materials with an annual output of 2.5 million tons in Sanjiangkou New Area, Guangxi" in Laibin, Guangxi, and "circular economy with an annual output of 2.5 million tons of high-performance paper-based new materials" in Shishou, Hubei.
Focusing on the latest progress of the project, according to Xianhe shares at the end of April in an investor survey, the company's Guangxi and Hubei projects are steadily advancing in accordance with the construction plan, and the construction of the first phase of the project is nearing completion, and at the same time, the two projects have been prepared for operation in terms of manpower, material resources and technology. Among them, PM1 and PM2 of the Hubei project have been started up in the first quarter of 2024, and the Guangxi project is also expected to be put into operation in the middle of 2024. The production lines of the first phase of the Guangxi and Hubei projects are expected to be gradually put into operation in 2024.
The two major projects are of great significance to Xianhe shares, and the production capacity of Xianhe shares may be doubled and expanded after they are put into operation, and the market share may be further increased. It is reported that a common feature of the above two projects is to make use of the advantages of local resources, seize the resource highland, and realize the whole industrial chain layout of "integration of forest, pulp and paper" to make up for the shortcomings of upstream pulping. "Guangxi is the largest production base of fast-growing eucalyptus in the mainland, which is extremely suitable for the production of hardwood pulp, and the Hubei project is located in the Shishou Yangtze River Basin, with rich resources of poplar and reed, which is conducive to investing in forestry production and establishing a resource-based circular development of the whole industry chain enterprise. Xianhe shares introduced in the annual report.
The whole industrial chain, diversified layout and production measures to keep up with market demand are also being favored by institutions. Guosheng Securities analysts pointed out from the perspective of short-term profitability that in the first half of 2024, Xianhe shares will still be in room for price increases, and due to the early hoarding of pulp and the expected controllable cost rise, the profit per ton is expected to remain high. Zhongtai Securities analysts pointed out that in the long run, Xianhe shares diversified product layout, with the improvement of production capacity layout, pulp and paper integration promotion, the company is expected to fully benefit from the expansion of demand under the trend of paper instead of plastic.
Analysts of Guojin Securities believe that Xianhe shares will welcome the big year of production capacity in 2024, with a clear growth path for multi-category expansion, a forward-looking integrated layout of forest, pulp and paper, and continuous improvement of comprehensive capabilities.
Looking forward to the long-term development, Xianhe Co., Ltd. said that it will give full play to its resource advantages to ensure the smooth operation of the industrial parks in Guangxi and Hubei; at the same time, it will continue to pay attention to the demand of the frontier market, actively adjust the layout of production capacity, and rapidly expand its market share; increase the research and development of new products, expand the market share of the company's products, and continue to carry forward the spirit of "innovation and development, pioneer cattle, hard work old cattle", and continue to create new wealth for investors.