Capital increase Bosheng New Materials & announcement of the Establishment of Equity Investment Fund: the company issued an announcement on October 10 and is currently planning to buy shares in Shenzhen Bosheng New Materials through mixed payment (engaged in R & D and sales of batteries, diaphragm materials, etc.). This capital increase is another capital increase after the company's holding subsidiary Xinrui Technology paid 50 million yuan for the 8.3% stake in Bosheng New Materials in January 2022, and is expected to continue to improve the production capacity layout of the company's battery diaphragm products in new energy vehicles, energy storage and other areas. In addition, the company announced that it intends to invest 40 million yuan to set up Hangzhou Sihan Equity Investment Partnership with Huzhou Saize Foundation Private Equity Fund, accounting for 99.75% of its total contribution. The main investment direction is new energy, energy storage, new materials and high-tech industries. At present, it has been approved to complete the formalities of registration of establishment.
New material: Jiangsu Yancheng Phase I base is expected to reach full production in 22Q4, and the energy storage diaphragm is expected to be released in 2023. The company has entered the Enjie stock supply chain since 2021, supplying consumables such as lithium battery diaphragm, and the company currently signs an annual framework agreement with it, which is expected to increase its production capacity by a large margin in 2022. The current production capacity of the subsidiary Bosheng New Materials is at full capacity. Jiangsu Yancheng Phase I production base is expected to fully reach production in 22Q4, while Phase II production base is currently in the equipment delivery stage, and is expected to gradually reach production in mid-2023. The new production capacity of Yancheng production base is all supplied by BYD power battery diaphragm, and the energy storage diaphragm of Ningde era is expected to release in 2023. In addition, new energy, energy storage areas bring PET substrate membrane demand growth, the company is expected to quickly release new production capacity this year.
Medicine bag: the hard film production project of 120 million yuan has been carried out smoothly, and the manufacturing base of 500 million yuan high resistance medicine bag has been built to improve the industrial layout. In 22H1, the company entered the customer supply system of foreign enterprises, such as AstraZeneca PLC, Fessen Yuskabi, Sanofi, Bayer and so on. Foreign customers have higher requirements for packaging quality and are expected to have higher gross profit margin of incremental business. Fuxin Huakang, a holding subsidiary, invested 120 million yuan in Jiangsu Taixing drug package hard tablet production project, which is currently in the early planning; in addition, the holding subsidiary plans to invest 500 million yuan to build Changzhou high barrier drug packaging intelligent manufacturing base to optimize the industrial layout of class I drug packaging materials.
Investment suggestion company ploughing tobacco label for 30 years, is the first echelon of tobacco label industry, with industrial chain and scale advantages. The company accelerates the industrial layout of class I materials and new materials, the layout of high-growth track, long-term space to open. It is estimated that the net profit of returning to the mother in 22-24 will be 7.1 / 850 million yuan respectively, and the corresponding share price PE will be 13X/12X/10X, maintaining the "buy" rating.
The risk suggests that raw material prices fluctuate, new business growth falls short of expectations, and investment returns fluctuate sharply.