A leading enterprise in the field of colorants, with outstanding environmental protection advantages. The company is a leading enterprise in R&D, production and sales of colorants in China. Its main products are environmentally friendly, ultra-fine water-based colorants, and also provides customers with overall color solutions. At present, the company has become a leading enterprise in the domestic colorant industry, and is in a leading position in market segments such as architectural paint paste, latex colorant, and paper paste. The color paste products produced by the company use water as the medium and do not contain APEO and formaldehyde. Through large-scale and specialized production, the pigment usage rate can be increased and waste water emissions can be reduced; the cellulose solution coloring paste produced by the company changed the traditional dyeing process in the downstream textile industry, reduced the overall consumption of energy and water resources, the product was less polluted, and the environmental advantages were obvious.
Downstream demand is strongly supported, and the colorant business has broad prospects. The sales revenue of architectural paint pigments accounts for more than half of the company's total revenue. Real estate investment is the main driving force for the development of architectural coatings. Real estate investment and construction paint production have steadily increased in recent years, with compound growth rates of 19.4% from 2006 to 2015 respectively, driving the company's business to improve. Furthermore, with the improvement in the quality and stability of the company's products, the application of colorants has also continued to expand into textile fibers, latex and other fields, which has contributed to the growth of the colorant market capacity.
Technical advantage+professional service to drive performance growth. After years of technology and R&D accumulation, the company has 41 patented technologies, which have formed core technologies such as pigment ultrafine technology, stable product production control technology, integrated color measurement technology, and clean production and recycling technology. Its ultrafine and nanoscale colorants have obvious advantages in coloring intensity, color purity, vividness, and product uniformity and stability. The color measurement software and color mixing integrated system developed by the company have successfully revolutionized the traditional manual color mixing method, realized automatic color matching and online control for downstream enterprises, and provided a guarantee for the improvement of product quality and clean production for downstream enterprises. The company is also equipped with a complete after-sales service system, set up a professional technical service team, regularly visits major customers, promptly resolves problems encountered by customers during use, understands customers' changing product needs, and creates a good brand image.
Profit forecasts and investment recommendations. The company's EPS is expected to be 0.97 yuan, 1.15 yuan, and 1.87 yuan respectively in 2016-2018, and the corresponding dynamic PE is 132 times, 111 times, and 69 times, respectively. It was covered for the first time and given a “increase in holdings” rating.
Risk warning: the risk of large fluctuations in raw material prices; the risk of a slowdown in the growth rate of market demand in the downstream industry; the risk that the promotion and results of fund-raising projects will fall short of expectations.
