Report summary:

Based on the electrode foil industry, build a leading enterprise in the industry. The production volume, product quality and product series specifications of the company's low-pressure chemical foil rank among the highest in the domestic industry. The quality of some products has reached the highest level of electrode foil produced by Japanese companies representing the highest level of electrode foil. It is currently one of the few domestic enterprises that can independently produce low-pressure corrosive foil products to the international market. It is also one of the few domestic enterprises that can independently produce low-pressure corrosive foil on a large scale and at the same time carry out large-scale chemical production of self-produced corrosive foil.

The rapid development of the aluminum electrolytic capacitor industry has created good opportunities for the company. The rapid development of consumer electronics, industrial, automotive electronics, military, medical devices and other application fields has provided a good opportunity for the company to develop the electrode foil business. China has become a major producer and consumer of electrode foil. It is estimated that global electrode foil consumption in 2015 was about 71,700 tons, and by 2019 it will reach 82,600 tons. It is estimated that the consumption of electrode foil in mainland China was about 44,900 tons in 2015 and will reach 53,500 tons by 2019.

Company profit forecasts and investment ratings. We forecast the company's 2017-2019 revenue to be: 444 million yuan, 556 million yuan, and 724 million yuan respectively, net profit of 33.88 million, 43.49 million, 56.12 million, and EPS of 0.25, 0.32, and 0.41 respectively. The initial rating gave the company a “highly recommended” rating.

Risk warning... Risk of fluctuations in raw material prices: risk of fund-raising projects falling short of expectations