Main points of investment:
Announcement: an announcement was issued on September 28, 2021, which intends to use its own capital of 50 million yuan (including)-100 million yuan (including) to buy back shares for the implementation of equity incentives. The repurchase price shall not exceed RMB 40 per share (inclusive), which shall not be higher than 150% of the average trading price of the company's shares in the 30 trading days prior to the approval of the buyback plan by the board of directors. This time, it is expected to buy back about 125-2.5 million shares, accounting for 0.31% of the company's total share capital. 0.63%.
The buyback plan demonstrates the company's confidence in long-term development. The introduction of this buyback plan is based on the company's confidence in future development and optimistic judgment on future value growth, which is expected to improve the market's investment confidence in the company. This share buyback is intended to be used in the equity incentive plan, which will help to further establish a long-term mechanism of risk-sharing and benefit-sharing among the company, shareholders and core employees, stimulate the vitality of the company and achieve long-term development.
Aihua Group is the leader of aluminum electrolytic capacitor industry in China and the fourth market share in the world. According to Paumanok,2019, the global market share of Aihua Group increased to 8% from less than 5% in 2015, ranking fourth in the world and first in the country. The high-end market of aluminum electrolytic capacitors requires high technology, which is dominated by Japanese enterprises, and the Japanese Big four have a combined share of more than 50%. The company's new product PR conductive polymer aluminum solid capacitor has entered Apple Inc's supply chain and is used by Apple Inc 20W PD fast charging. Apple Inc used Japanese capacitors almost before. This breakthrough proves that the company has reached a high level of technology and quality in high-end solid-state capacitors.
We will actively promote the transformation of downstream applications, with industrial and consumer electronics rate capacitors leading the growth. 82% of the income in 2020 comes from pan-consumer electronics, and the industrial sector has great potential for development. In addition to the consumer electronics category, which benefits from the rapid growth of downstream demand such as fast charging and home appliances, 2021H1 focuses on the development and layout of new energy photovoltaic, industrial control and emerging markets for new energy vehicles, with rapid increase in industrial customer orders and leading revenue growth in other areas.
The construction of production capacity of chemical foil and high-end products has been carried out in an orderly manner. Projects under construction at the end of June 2021 increased by 102% over the end of 2020 to 296 million yuan. After the second phase of production expansion, Xinjiang Rongze aluminum foil has a total production capacity of 9 million square meters. The "third phase 20-strip foil project" invested at the beginning of 2021 has a total investment of 180 million yuan. After reaching production, it will achieve an annual output of 4.5 million square meters into foil, with an annual output value of 300 million yuan and a construction period of 10 months. It is expected to be put into production this year. In 2018, the proposed investment of the horn capacitor project is 170 million yuan, and the monthly production capacity is expected to increase from 650000 to 4 million, and is expected to be put into production by the end of the year. The laminated chip solid aluminum electrolytic capacitor project is still under construction with an investment of 190 million yuan and is expected to increase its monthly production capacity from 4 million to 30 million.
Maintain the profit forecast and maintain the "buy" rating: it is optimistic that the company will continue to achieve breakthroughs in many areas of consumer electronics and industry, and the construction of high-end production capacity will proceed in an orderly manner, maintaining 2021-2023 home net profit forecasts of 480 million yuan, 580 million yuan and 680 million yuan, and 22 times 2022PE at current market value, maintaining the "buy" rating.
Risk hint: the risk of raw material price fluctuation; production expansion and market development are not up to expectations