Report summary:
The “environmental vaccine” is highly effective and widely used, and is expected to drive the company's performance to explode. The company controls Lihe Yunji to lay out “environmental antibody” materials. The self-killing anti-viral materials can physically kill various viruses such as COVID-19. They can be used in scenarios such as elevator buttons, touch screens, desktops, and countertops. Each spray is valid for 1 year, and the market space is broad. At present, Lihe Yunji has reached cooperation with quarantine hotels in Shenzhen, and is actively expanding major national projects such as the Winter Olympics and customs. Due to more mature technology and industrialized process technology, the annual production capacity is expected to reach more than 1 billion in the short term, which is expected to lead to an explosion in performance.
Gather high-quality scientific and technological resources and deepen the layout of science and innovation services. In terms of science and innovation services, the company has focused on the national strategic emerging industry plan and relied on the innovation base network and investment incubation platform to cultivate a large number of high-quality enterprises in the industry, such as Lihewei, JPT, Lando Biotech, and Qingyan Environment. Up to now, the company has invested in and incubated 27 companies. This year, the company announced Huizhou Lihe Youke and Beijing Lihe projects one after another, actively increasing the layout of domestic high-tech industrial parks and expanding the scope of science and technology innovation services. Future performance growth is expected to accelerate.
Leading cosmetic plastic packaging, rich brand resources, service throughout the industry chain. In terms of traditional cosmetics packaging, the company is actively developing domestic brands including Health Hall and Gu Yu on the basis of its original high-quality customers, and cooperates with science and technology colleges at home and abroad to improve technical standards and enhance customer stickiness. It is expected that it will continue to maintain steady development. The company introduced science and innovation services to enhance the competitiveness of traditional main businesses through measures such as extending the industrial chain and expanding product lines. Science and innovation services and cosmetic packaging promote mutual collaborative development.
Profit forecast: Considering that future anti-viral materials are expected to contribute to incremental performance increases in profit forecasts and target prices, the company's revenue for 2021-2023 is estimated to be 25.48/30.20/3.465 billion yuan respectively, and the net profit of the mother is 556/681/803 million yuan respectively. The corresponding PE of the current stock price is 25.4/20.74/17.59 times, respectively. Maintain the “buy” rating and raise the target price to 14 yuan.
Risk warning: Market development falls short of expectations; alternatives appear; ineffective against the novel coronavirus