Main points of investment

Weigang Technology, a company listed on the main board, made an inquiry on Wednesday (November 16).

Weigang Technology (001256): the company has been engaged in the research and development, production and sales of label printing equipment, including intermittent PS trademark printing machines, machine-type flexographic presses and post-press equipment such as die-cutting machines, which are widely used in label printing in daily chemical, food and beverage, medicine, household appliances, security, ticketing, electronic products and other fields. From 2019 to 2021, the company achieved operating income of 382 million yuan / 380 million yuan / 451 million yuan, YOY of 6.77%, 0.53%, 18.79%, and a compound annual growth rate of 8.05%. The net profit of homing was 85 million yuan / 103 million yuan / 96 million yuan, and the YOY was 12.76%, 21.72%, 6.67%, and 8.60%, respectively. During the latest reporting period, 2022Q3 achieved an operating income of 313 million yuan, down 1.08% from the same period last year, and a net profit of 64 million yuan, down 3.82% from the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit of 95.4567 million yuan to 104.8067 million yuan in 2022, a year-on-year change of-0.76% to 8.96%.

Investment highlights: 1. With the technological leadership of its products, the company has developed into one of the leading enterprises in the field of domestic label printing equipment. On the one hand, the company's label printing equipment uses core technologies such as self-developed feeding device and transmission structure, and the maximum printing speed of intermittent offset press can reach 65 m / min, which is higher than 55 m / min, which is higher than the industry standard. The actual maximum printing speed of full-rotation offset press and machine group flexo press can reach 200 m / min, 150 m / min higher than the industry standard. On the other hand, the label printing equipment of the company can effectively improve the stability of material feeding and keep the tension of the substrate stable through the application of intelligent control deviation correction system and intelligent tension control technology. it can realize the functions of on-line detection, dynamic feedback and real-time automatic adjustment of printed matter, thus reducing the overprinting error and overprinting error to less than 0.1 mm, and greatly improving the qualified rate of printed matter and more than 98% of the qualified rate of printed matter. According to the official website of competitors, the performance index of the company's label printing equipment is close to or reaches the level of foreign competitors, and is generally better than domestic competitors. Relying on strong R & D capabilities and stable product quality, the company's label printing equipment sales scale has always been in the forefront of the industry, and domestic customers are widely distributed in more than 30 provinces and cities across the country, with high market recognition and popularity. 2. The company has newly developed a combined high-speed full-wheel offset press, and the application of the product has been extended from label printing to the field of packaging printing.

Based on the original technical reserve, the company has creatively developed a variable diameter sleeve printing drum, the length of the printing pattern is nearly equal to the surface perimeter of the printing plate drum, and can realize full rotation continuous printing. it solves the pain point that the traditional offset press drum can only carry out intermittent printing, and greatly improves the printing efficiency. More importantly, compared with the intermittent PS version trademark press (offset printing), the combined high-speed full-rotation (sleeve) offset press can increase the maximum printing format width to 680mm, realizing the transformation from narrow printing to medium-wide printing, indicating that the company has the strength to enter the larger market scale and broader growth space of the packaging printing market. As of the first half of 2022, the company's new product full-rotation offset press has achieved sales income of nearly 3 million yuan; and in terms of production capacity, in order to expand the production capacity of new products, the company began to carry out the "annual production of 180 full-rotation presses and other intelligent printing equipment construction project" as early as 2019, as of the end of September 2022, part of the project has been resurrected ahead of schedule.

Compared with listed companies in the same industry: the company specializes in the research, development, production and sales of label printing equipment; according to the similarity of business, printing and packaging equipment manufacturers such as Honghua, Evergreen and Dayilong are selected as comparable listed companies of Weigang Technology. Judging from the above comparable companies, the average income in 2021 is 1.158 billion yuan, the comparable PE-TTM (excluding negative / arithmetic average) is 55.49X, and the sales gross profit margin is 32.42%. Comparatively speaking, the company's revenue scale is in the middle and lower range of the industry, while the gross profit margin is slightly lower than the industry average.

Risk hint: companies that have started the inquiry process may still be unable to list due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.