The revenue of Yutong and Hexing surged in the first half of the year. Who will create a new revenue record?
Xiamen Hexing Packaging and Printing Co., Ltd. (hereinafter referred to as Hexing Packaging) and Shenzhen Yutong Packaging Technology Co., Ltd. (hereinafter referred to as Yutong Technology) are the leading enterprises in my country's printing and packaging industry.
In the 2021 "Top 100 Chinese Printing and Packaging Enterprises Ranking", Hexing Packaging won the top spot with a sales revenue of 12.007 billion yuan, and achieved the 2019-2021 top 100 list on the basis of three consecutive years of sales revenue exceeding 10 billion yuan. Single three consecutive championships.
Prior to Hexing Packaging, Yutong Technology also won the top three times from 2016 to 2018. In the 2021 list, it ranked second with 11.789 billion yuan in sales revenue, and became the second company to break 10 billion yuan. On the basis of printing enterprises, the gap with Hexing Packaging has been further narrowed. The gap of 218 million yuan is almost "ignorable" on the battlefield of tens of billions.
Not long ago, the two companies respectively announced their annual reports for the first half of 2021, which made the competition for the next top 100 list even more suspenseful.
Yutong Technology's half-year revenue exceeded 6 billion yuan, a 40% increase
On August 30, Yutong Technology first announced its 2021 half-year report.
The annual report shows that in the first half of 2021, Yutong Technology's revenue reached 6.052 billion yuan, an increase of 40.42% year-on-year; the net profit attributable to shareholders of listed companies was 336 million yuan, an increase of 2.56% year-on-year.
From the perspective of revenue, under the scale of tens of billions, such rapid growth can still be achieved, and the performance is quite eye-catching.
In this regard, Yutong Technology stated that the company’s management, under the correct leadership of the board of directors, follows the core strategic objectives and business strategies, and in the case of substantial increases in the price of raw materials and paper, it optimizes the customer structure and actively develops key customers and strengthens cost control. , Measures such as improving production efficiency, accelerating intelligentization and informatization construction to respond to changes in the macroeconomic and industrial environment, and to achieve the stability and development of the company's operations.
From the perspective of revenue structure, the performance of several major products of Yutong Technology is relatively even. Among them, the revenue of paper boutique packaging increased by 40.20% year-on-year, and the revenue of packaging accessory products increased by 41.58% year-on-year. Environmentally friendly paper-plastic products, which accounted for a relatively small proportion, also achieved a growth of 51.20%.
Hexing Packaging’s half-year revenue exceeded 8 billion yuan, a 72% increase
On August 31, Hexing Packaging also announced its 2021 half-year report.
The annual report shows that in the first half of 2021, Hexing Packaging’s operating income has reached 8.214 billion yuan, an increase of 72.39% year-on-year; the net profit attributable to shareholders of listed companies is 151 million yuan, an increase of 9.17% year-on-year.
Judging from the data alone, Hexing Packaging's performance is even more remarkable.
Hexing Packaging pointed out in the report that in the first half of 2021, the company will focus on business objectives and tasks, continue to promote various quality and efficiency improvements, increase investment in product research and development, process improvement, and rely on technology accumulation to lead the increase in production capacity. And the advantages of industrial chain synergy, optimized product structure, broadened business channels, and actively responded to unfavorable factors such as rising raw material prices and intensified industrial competition, which promoted the increase in the market share of enterprises.
From the perspective of revenue structure, corrugated packaging is still the main source of Hexing Packaging’s revenue, accounting for nearly 70%, an increase of 53.36% year-on-year; color box packaging has a larger growth rate, which can reach 106.88%, but the overall volume is only 300 million yuan, relatively small; industrial paper has become the biggest highlight, with revenue reaching 1.733 billion yuan, an increase of 195.03% year-on-year, accounting for 21.10%.
Behind the big rise
From a comprehensive analysis, the main reasons for the surge in revenue of Hexing Packaging and Yutong Technology in 2021 are as follows:
One is the recovery and growth under the influence of the epidemic. In the first half of 2020, affected by the epidemic, the revenue growth of most companies fell short of expectations. Therefore, in the first half of 2021, there will be more recovery growth. According to data from the National Bureau of Statistics, in the first half of 2021, the revenue of printing enterprises above designated size in my country increased by 18.8% year-on-year. In fact, not only Hexing Packaging and Yutong Technology, but most printing and packaging listed companies handed in a good first half of the year. The recovery growth under the epidemic has become an important reason for the surge in revenue of these companies.
The second is an active promotion of the upgrading of consumer demand. In recent years, the upgrading of consumer demand has played a significant role in stimulating the growth of the printing and packaging industry, attracting enterprises to actively deploy. In the first half of 2021, Hexing Packaging's color box packaging revenue increased by 106.88% year-on-year. The growth rate of Yutong Technology's consumer business is also very gratifying. Among them, the growth rates of cigarette packs and wine packs business were 115% and 99% respectively. Although the revenue of the cosmetics business was not high, it also achieved a growth rate of 72%.
Three is the development dividend brought by emerging technologies represented by the Internet and intelligent manufacturing. The Xuchang Intelligent Manufacturing Industrial Park project built by Yutong Technology has completed infrastructure construction and started production. It has fully opened up the business flow from raw material warehouse, post-press workshop, semi-finished product warehouse, assembly workshop to finished product warehouse, and promotes the overall information of the industrial park with business as the core. The construction of digitalization and digitization can realize the integration of business flow, information flow and logistics. Intelligent construction represented by the Xuchang project is becoming an important growth driver for Yutong Technology. Hexing Packaging's Packaging Industry Supply Chain Cloud Platform (PSCP), which relies on Internet information technology, is also continuing to make efforts. According to Hexing Packaging’s annual report, in the first half of 2021, the PSCP platform has accumulated a lot and the industry chain service revenue is about 2.844 billion yuan, a year-on-year increase of 80.85%.
Fourth is the pulling effect of rising raw material prices. As a printing and packaging company, the cost of raw materials is relatively high. In the first half of 2021, the price of raw materials represented by paper continued to increase, which to a certain extent promoted the gathering of printing orders to more efficient leading companies. At the same time, the industrial paper business of Hexing Packaging increased by 195.03% year-on-year, which also contributed to the substantial increase in Hexing Packaging's revenue in the first half of the year.
Of course, the rise in the prices of bulk commodities such as paper has also had a great impact on the net profit of Hexing Packaging and Yutong Technology. In the case of a surge in revenue, the net profits of the two companies were 151 million yuan and 336 million yuan, respectively, an increase of 9.17% and 2.56% year-on-year, both of which were lower than the 11.8% growth of enterprises above designated size in the printing industry in the first half of 2021. Speed, this has also become a hidden worry for the two companies' revenue growth.
Before and after Yutong Technology announced its first-half financial report, a number of institutions had forecasts for Yutong Technology's overall revenue in 2021. For example, China Galaxy predicts Yutong Technology's revenue in 2021 will be 14.479 billion yuan, CICC predicts 15.391 billion yuan, and Kaiyuan Securities predicts 15.007 billion yuan. If the organization's forecasts are not biased, Yutong Technology is likely to achieve a revenue of 15 billion yuan in 2021. With Hexing Packaging's revenue of more than 8 billion yuan in the first half of 2021, it is also expected to create a new revenue record for the whole year.
Judging from the situation in the first half of the year, the competition between Yutong Technology and Hexing Packaging for the "Top 100" will continue, let us wait and see.
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