Key points of investment

The main business of Jiangsu Xinmeixing Packaging Machinery Co., Ltd. is the R&D, production and sales of liquid food packaging machinery. Currently, its main products are fluid series equipment, filling series equipment, secondary packaging series equipment, and fully automatic high-speed PET bottle blowing equipment.

1. High-end equipment manufacturing industry with strong downstream demand

The downstream application fields of liquid food packaging machinery are mainly distributed in liquid food industries such as beverages, edible oil, condiments, and alcohol. Advanced liquid food packaging machinery is an important guarantee for the nutrition and flavor of downstream liquid food. The expansion of the scale of the downstream industry and the improvement of automated and intelligent production levels have a great driving and driving effect on the development of this industry.

2. A first-line brand in the domestic liquid food packaging machinery industry driven by technical advantages.

Relying on highly qualified technical R&D personnel, high-end R&D and testing platforms, and efficient R&D systems, the company has continuously increased investment in technology research and development. Through technological innovation and independent research and development, it has broken the long-term monopoly of international liquid food packaging companies on aseptic cold filling technology for PET bottles in the field of aseptic filling of liquid food. With comprehensive management advantages such as good technical research and development capabilities, superior product performance, and excellent after-sales service, the company has accumulated rich customer resources in liquid food industries such as beverages, alcohol, cooking oil, and condiments.

3. The high cost performance advantage will increase market share, and there is great potential for import substitution.

Through years of independent research and development and self-innovation, the company has continuously increased investment in R&D, improved the company's technical level, developed new products, and continuously improved product quality. Compared with foreign products, the company's products have obvious advantages in terms of cost and price. In terms of cost, China has lower human resource costs, management costs, and raw material costs; in terms of price, the company's product prices have a strong price advantage compared to similar foreign products. As the company's technical level improves and brand influence increases, there is still plenty of room for improvement in the future 4. Capital raising investment projects will expand the company's market share and enhance the company's overall competitiveness.

After the implementation of the fund-raising investment project, there will be no significant impact on the company's current business model. It will further consolidate and expand the market share of the company's main products and enhance the company's overall competitive advantage. The company will continuously improve its corporate governance structure, continue to improve its independent research and development capabilities, actively explore domestic and foreign markets, further improve domestic and foreign after-sales service systems, and strive to become the world's leading supplier of liquid packaging solutions.

4. Profit forecasting and valuation.

We expect the company's EPS to be 0.96 yuan, 1.10 yuan, and 1.29 yuan respectively in 2016-2018. The price-earnings ratio of 30-40 times is reasonable, and the corresponding reasonable price range is 28.8-38.4 yuan.