The company is a leading company in the field of modified plastics in China. The company's main products include modified general plastics, modified engineering plastics, modified special engineering plastics and other polymer materials. In 2019, the market share of the company's products was 0.61%. In 2021, the company realized operating income of 1.303 billion yuan, + 17.59% year-on-year, net profit of 64.0971 million yuan, 16.73%, and non-net profit of 56.6667 million yuan, 24.38% of the same period last year.
The market capacity of modified plastics industry is huge. The output of modified plastics of industrial enterprises above scale in China increased from 7.05 million tons in 2010 to 19.55 million tons in 2019, with a compound annual growth rate of 12.00%. In the same period, the compound annual growth rate of synthetic resins and copolymers was 9.13%. The modification rate increased from 16.20% in 2010 to 20.40% in 2019. Modified plastic products have obvious characteristics of "intermediate products", which are widely used in household appliances, automobiles, electronic appliances, medical and health and other different segments of fields, and with the continuous improvement of the demand of downstream market segments, the application proportion increases accordingly. According to the market output of 17.83 million tons and 19.55 million tons of modified plastics in 2018 and 2019, the company's market share in 2018-2019 was 0.48% and 0.61%, respectively.
Relying on the perfect R & D system and strong R & D strength, the company has established a more comprehensive product line. The company's products cover PP, ABS, PC, PC/ABS, PBT, PET, HIPS, PPO, PPS and other polymer materials, including conductive, magnetic, antistatic, thermal, antibacterial, flame retardant, spray-free and other functions of multiple brands, has been widely recognized by customers. In the field of household appliances, the company's modified plastic products have been widely used in small appliances such as rice cookers, microwave ovens, pressure cookers, dishwashers, air conditioners, televisions and other large household appliances. The main customers include Midea, Hisense Group, Supor, Galanz Group and other well-known domestic household appliance enterprises. In the automotive field, the company's modified plastic products have been widely used in the manufacture of automotive interior decoration, exterior decoration, door panels, posts, dashboards, bumpers, pedals and other components, and have established good cooperative relations with well-known automobile brands such as Dongfeng Group and Changan Group, as well as Yanfeng Automobile, Kanaike and other well-known auto parts enterprises.
Fund-raising projects lay the foundation for the growth of the company. After reaching production, the second phase of the construction project of the East China production base is expected to increase the production capacity of modified PP, modified PC/ABS, modified PBT and other modified plastic products by 100000 tons, with a total investment of 210 million yuan, and is expected to be put into production by the end of 2024. after full production, it is expected to increase the average annual sales income by 1.2 billion yuan, the after-tax internal rate of return of the project is 18.82%, and the payback period of static investment after tax is 7.83 years. After reaching production, the second phase of the construction project of the South China production base is expected to increase the production capacity of modified PP, modified PC/ABS, modified PBT and other modified plastic products by 50, 000 tons, with a total investment of 86.15 million yuan, and is expected to be put into production by the end of 2022. After full production, the average annual sales income is expected to increase by 600 million yuan, the after-tax internal rate of return of the project is 20.49%, and the payback period of static investment after tax is 7.44 years.
Risk tips: macroeconomic change risk; working capital turnover risk; raw material prices fluctuate greatly.
