China's leading ink paint manufacturing enterprises. The company is a leading manufacturer of inks and coatings in China, with independent research and development capabilities of high-performance inks and coatings. While maintaining the development of traditional products, the company also expands into the fields of flat panel display, semiconductor photoresist and self-made resin, and plans to realize the self-production of some materials vertically, increase the supply of existing products, and expand the product category horizontally.
Jiangxi Guangzhen New Base takes into account the extension to the upper reaches and the strengthening of industrial clusters, and the traditional business will reverse soon.
Resin is one of the main cost items of the company. the company plans to make raw materials such as resin in Guangzhen, Jiangxi, in order to improve the company's ability to control key raw materials. If it is successfully put into production, it will effectively reduce the company's operating costs and strengthen the advantages of industrial clusters. In addition, because the new base is located in the chemical park, it has more environmental protection and safety supervision advantages than the old base that is not in the chemical park.
The demand for coatings in the automotive field is rising. The rapid development of China's new energy vehicle industry brings opportunities for the domestic automotive paint market. Domestic paint brands have more advantages in the key links such as R & D localization, supply localization, rapid response and so on. The company actively distributes the automotive field, not only realizing the application of automotive lamp paint in GM Wuling, Changan, Geely and other domestic automobile brands, but also successfully promoting the sales of newly developed new energy automobile interior and exterior decoration coatings in the supply chain of domestic main engine factories such as BYD and Changan.
The accumulation of technology is expected to be realized in the new business of flat panel display and integrated circuit photoresist. There is a great demand for improvement in China's FPD photoresist and IC photoresist industry. Based on the advantages of the original PCB photoresist, the company extends to flat panel display photoresist and integrated circuit photoresist. Some of the flat panel display photoresist products and supporting materials such as TP and TN/STN-LCD photoresist developed by the company have been sold, which is expected to further realize the company's technology accumulation.
A number of new products in the field of new energy have gradually landed, which is expected to become a new growth point of the company. The company actively explores new application scenarios of photovoltaic materials, focusing on the development of photovoltaic photovoltaic adhesive, photovoltaic insulating adhesive and other new Applied Materials Inc, which can be used in HPBC, photovoltaic copper plating and other new technology routes. In addition, the new energy insulation coating developed by the company can be applied to the aluminum shell of the power battery of the new energy vehicle to protect the insulation of the power battery shell, which can be used as a new material alternative solution to provide more safe and stable insulation protection for the new energy battery shell.
Profit forecast and rating: the company's operating income from 2022 to 2024 is estimated to be 5.99,7.72 and 1.094 billion yuan respectively, and the net profit returned to its mother is 0.14,0.79 and 183 million yuan respectively, and the corresponding EPS is 0.07,0.41,0.95 yuan respectively. With reference to the comparable company valuation and the company's own historical valuation level, and combined with the expected production time of the company's Jiangxi Guangzhen base, the company is given 30 times PE multiple in 2024, corresponding valuation of 5.5 billion yuan, and corresponding target price of 28.50 yuan. Maintain a "buy" rating.
Risk hints: the risk that product research and development or verification in the new energy field is not as expected; the risk that self-made resin is not as expected; the risk of intensified market competition; and the risk of macroeconomic downturn.