Leading domestic plastic pipe company, focusing on new chemical plastic pipe products. The company is a large-scale domestic technology-leading plastic pipe fittings manufacturer integrating R&D, production and sales of polyvinyl chloride (PVC), polyethylene (PE), and irregular copolymer polypropylene (PPR) products. In 2021, the company achieved revenue of 2.354 billion yuan (unaudited), an increase of 13.77% over the previous year.
Municipal engineering ushered in a spring of policy, and the development of underground pipelines entered the fast track. The expansion of demand for real estate infrastructure consolidates expectations for steady growth, and the increase in hardcover penetration rate and superimposed municipal pipe network construction push the company to increase PE pipeline business, sink into a broad market space, and shape the company's new growth curve.
“Strong alliances” improve the regional layout and enhance the company's performance by increasing scale. The company operates steadily, has 6,000 product segments, has six major production bases, and the scale of production capacity continues to rise. The sales network covers all prefecture-level cities and important county-level cities across the country, and sales methods combining distribution and direct sales can greatly expand revenue sources. The company plans to acquire Kangtai Group. After the acquisition is completed, the company will add 6 new production bases, with an annual production capacity of one million tons, further expanding the company's scale, enhancing the competitiveness of the industry, and enhancing the company's performance.
Profit forecasting and valuation
The company is deeply involved in the plastic pipe industry, focusing on core regions, actively expanding production capacity and improving regional layout. After successfully completing the acquisition of Kangtai Group, it will boost the company's revenue and profit levels. We expect the company's revenue from 2021-2023 to be 23.59, 3814, and 5.761 billion yuan, up 14%, 61.7%, and 51%, respectively; the net profit of the mother was 1.17, 2.72, and 417 million yuan respectively. The year-on-year changes were -45.1%, 133.2%, and 53.2% respectively. EPS was 0.33/0.76/1.16 yuan/share, corresponding to the stock price on March 31. The valuation of Xiongsu Technology in 2021/2022/2023 was 29/12/8 times, respectively, covering “purchases” ” Ratings.
Risk warning
Risk of fluctuations in raw material prices; risk of increased market competition; risk that implementation of investment projects such as fundraising and additional production capacity cannot be digested in a timely manner; uncertain risk of major asset restructuring.
Correction: This report is the report of the same name published on April 1, 2022. Corrections include Figure 1, Xiongsu Technology's management expense ratio, Kangtai Group's operating income, Figure 26-27, etc.
