Core ideas:
The company is a leading plastic Packer of electronic products in China.
Prince Xincai is a company mainly engaged in the research, development, design, production and sales of plastic packaging materials and products. Its products include plastic packaging film, plastic tray, plastic buffer material three series. The company is a leading integrated supplier of plastic packaging for electronic products in China, and its business is mainly concentrated in the field of plastic packaging of electronic products, accounting for an average of about 90% of the total revenue.
Mainly engaged in plastic packaging film and plastic trays, the income is relatively stable.
Industry analysis: long-term improvement, competition pattern three echelons distribution.
(1) the plastic packaging industry of electronic products has maintained a long-term trend of development. The China Packaging Federation predicts that from 2011 to 2015, the compound annual growth rate of China's plastic packaging market for electronic products will reach 16.75%. In 2015, the market size will reach 30.028 billion yuan; (2) there is an adequate supply of synthetic resin upstream; (3) the market scale of downstream electronic products is expanding year by year; and (4) the overall competition pattern of the industry shows a three-echelon distribution.
The core advantage is obvious.
The company's core competitiveness is more prominent: (1) the concept of service first and strong supply guarantee; (2) strong product design ability and high quality; (3) stable cooperation with downstream manufacturers to gain competitive advantage; (4) cost advantage is more prominent.
Fund-raising projects break the bottleneck of production capacity and lay the foundation for development.
At present, the production capacity of plastic packaging film and plastic tray is only 16000 tons and 7000 tons respectively.
After the completion of the fund-raising project, the production capacity of plastic packaging products will increase by a total of 28100 tons. Of this total, the production capacity of plastic packaging film was 18800 tons and that of plastic pallets was 9300 tons, with production capacity increasing by 117.5% and 132.9% respectively.
The fund-raising project will break the company's capacity bottleneck and lay the foundation for the follow-up development.
Profit forecast and valuation.
We predict that the net profits attributed to the parent company from 2014 to 2016 will be 31.57 million yuan, 35.88 million yuan and 36.42 million yuan respectively. According to the total share capital of 8000 million shares after the issue, the earnings per share from 2014 to 2016 will be 0.39 yuan, 0.45 yuan and 0.46 yuan respectively. Considering the growth and industry status of the company, we believe that the reasonable valuation range of the company's share price is 29 times the 2014 diluted earnings per share and 11.44 yuan.
Risk tips: raw material price fluctuations; risks of intensified competition; management risks that may be caused by scale expansion and cross-regional operations.