Main points of investment
The company is a leading plastic packaging integration supplier of electronic products in China. The company is mainly engaged in the research and development, design, production and sales of plastic packaging materials and products. The products cover three series of plastic packaging films, pallets and cushioning materials, and the business is mainly concentrated in the field of plastic packaging of electronic products (accounting for 90% of the total revenue). The company's net profit has remained basically stable in the past three years, with a total output of 18629 tons of plastic packaging products in 2013. In the future, the company will gradually develop into the field of high-function, weight-reducing and environment-friendly packaging products, so as to improve the scientific and technological content and added value of the products.
The plastic packaging market is developing steadily, and the plastic packaging industry for electronic products will maintain a growth rate of about 10% in the next few years. Plastic packaging products account for more than 1/3 of the whole packaging market with the advantages of light weight, insulation and good plasticity, and are widely used in downstream electronics, food, medicine and other fields. As the largest electronic production base in the world, China provides a broad market space for plastic packaging. the growth rate of the electronic plastic packaging industry is expected to maintain about 10% in the next few years, and the market size will reach 30 billion in 2015.
Service accumulates high-quality customer resources, nationalized layout and scale advantages to create cost competitiveness. The plastic packaging industry has a low threshold and a high degree of marketization, and the company adheres to the concept of service first: 1) professional team to serve key customers; 2) design products, with sample delivery within 3 days and 24-hour supply of conventional products; 3) nationwide layout "factory" service; 4) rich product line, which can provide customers with one-stop service and reduce the cost of customer supply chain management. Gathered Foxconn, Haier, Flextronics, Ricoh, Epson and other high-quality customer resources. At the same time, the company's national layout reduces the transportation radius, the production scale is large, and the bargaining power of upstream raw materials is strong, creating a cost advantage.
The company plans to issue 20 million new shares and raise 150 million yuan for expanding production capacity (28100 tons) and supporting corresponding working capital. The fundraising project focuses on developing new products such as cold shrink visual packaging film, PE low foaming film and new recyclable plastic slide plates, which will help to improve the added value of the company's products and enhance its core competitiveness.
Profit forecast: we forecast that the company's operating income from 2014 to 2016 will be 494 million yuan, 514 million yuan and 533 million yuan respectively, an increase of 3.74%, 4.03% and 3.62% respectively over the same period last year. The net profit belonging to the parent company is 36.12 million yuan, 40.18 million yuan and 42.39 million yuan respectively, up-8.16%, 11.25% and 5.5% respectively. According to the calculation of 80 million shares after the issue, the EPS from 2014 to 2016 is 0.45,0.50 and 0.53 yuan respectively. Give the company 30-32 × PE in 2014, with a target price of 13.5-14.4 yuan.
Risk hints: the risk of fluctuations in raw material prices and rising labor costs; the risk of intensified market competition; the management risk of cross-regional operation.