Main points of investment:
To create a first-class supplier of imaging materials and new energy materials. The company is the only domestic manufacturer of photosensitive materials. at present, the company has three major business modules: imaging materials, photovoltaic materials and lithium materials. In 2016, the company steadily developed the business of photovoltaic materials and realized the great-leap-forward development of photovoltaic materials. With the goal of rapidly promoting the marketization of lithium materials, we are committed to creating a world-class supplier of imaging materials and new energy materials.
High-performance lithium diaphragm is expected to be available in 2016. The rapid development of the new energy vehicle industry has led to the development of domestic power batteries and lithium battery diaphragms. China's lithium diaphragm output value in 2015 was 2.13 billion yuan, an increase of 29.2% over the same period last year. The company relies on the three core technologies of "coating, film formation and particles". Actively promote the industrial development of high-performance lithium diaphragm products. At present, the company's annual production capacity of 40 million square meters of high-performance lithium-ion battery PE diaphragm industrialization construction project, the annual output of 5 million square meters of lithium diaphragm coating production line phase I project is already in the commissioning stage, after the project is successfully put into production, the company will have high-performance lithium-ion battery separator production capacity, which will help to enhance the competitiveness of the company.
The fund-raising project of photovoltaic business was carried out smoothly. The government has introduced policies to vigorously promote industry integration, and the photovoltaic industry is facing major development opportunities. According to the 13th five-year Plan of Solar Energy Utilization, the target of solar photovoltaic installation in China during the 13th five-year Plan is 150GW, and the annual average new installation target will exceed 20GW. At present, the company has a production capacity of 20 million square meters of solar cell backpanels, and its product sales exceeded 16 million square meters in 2015, achieving a great-leap-forward growth. In order to expand the business scale of photovoltaic materials, the company invested in the solar cell back panel expansion project in 2014, and the production capacity will reach 35 million square meters after completion and commissioning, of which the production line with an annual output of 10 million square meters is expected to start this year, laying the foundation for further consolidating the company's leading position in the industry.
Color photographic paper has maintained a steady development. Fuji, Kodak and Lucky are the main manufacturers in the image material industry. At present, the company ranks first in the domestic color paper market share, and its comprehensive strength is outstanding. In recent years, due to the change of photo processing methods and the rapid development of online printing, the domestic image material industry continues to decline. Due to the decline in the price of color photographic paper products, the company's gross profit margin and net profit fell in 2015 compared with the same period last year. Although the industry has entered a period of recession, the company has maintained a stable development in the imaging industry with stable product quality, perfect sales network and high-quality service, and product sales have increased by 4% in the same period.
No rating for the time being. Benefiting from the rapid development of new energy and photovoltaic industry, the solar battery backplane, high-performance lithium battery diaphragm and coated film project raised by the company deserves attention. It is estimated that the company's EPS in 16-18 years is 0.11,0.14,0.18 yuan respectively. As the company's lithium diaphragm has not reached production, the company's valuation is still on the high side in the short term, so it will not be rated for the time being.
Risk hint: the project does not advance as expected; the product sales do not meet expectations.