Investment summary
Artificial quartz stone leading enterprise. As the first artificial stone company listed on A-share main board in China, the company has obvious advantages in the field of artificial quartz stone production. In the first three quarters of 2021, the company achieved operating income of 513 million yuan, an increase of 42.41% over the same period last year, and a net profit of 104 million yuan, an increase of 12.16% over the same period last year.
Industry growth potential, real estate decoration, customized home and other downstream demand expansion, supporting artificial quartz stone market demand gradually opened. At present, the artificial quartz stone industry is still in the growth stage, in recent years, the market expansion of commercial housing fine decoration, custom home, custom kitchen cabinets, artificial quartz stone has ushered in the golden stage of industry development, and the market share of the industry will continue to expand. brand concentration will be further improved. Under the new growth mode, large custom kitchen cabinet manufacturers will pay more attention to the quality, color design, additional functions and other factors of artificial quartz stone countertops. For the artificial quartz stone industry, enterprises that master core technology, high product quality and strong R & D and design capabilities will face more market opportunities.
Increase investment in research and development, actively expand production capacity, and consolidate the leading edge of the industry. The company actively expands its production capacity, breaks through the existing capacity bottleneck, enhances its R & D strength, and builds a solid foundation of software and hardware. In addition, the company is committed to the transformation from "product manufacturing" to "product + service" mode, has accumulated a number of high-quality customer base, and become the main supplier of domestic well-known customized household, kitchen and bathroom and foreign quartz stone brand enterprises.
Profit forecast and valuation
As a manufacturer of artificial quartz stone, artificial quartz stone complies with the improvement of downstream hardcover permeability, the market demand of whole house customization and public fitting is gradually opened, and the market space of quartz stone is gradually expanded. In addition, the company attaches importance to improving product quality, optimizing channel sales, and dealing with the challenges brought by changes in the business environment. We expect the company's operating income from 2021 to 2023 to be 7.22,9.06 and 1.15 billion yuan, an increase of 30.16%, 25.44% and 26.89% respectively over the same period last year. The homing net profit was 1.49,1.79 and 221 million yuan respectively, with an increase of 9.2%, 20.2% and 23.5% respectively over the same period last year. EPS was 1.64 RMB per share, corresponding to the stock price on March 11, with a valuation of 21-17-14, covering for the first time and giving a "buy" rating.
Risk hint
The risk of price fluctuation of major raw materials; the intensification of market competition; the risk of international trade friction.