The company has formed a unique core technology in the field of electrical paper and special long fiber paper, and is the only manufacturer capable of serializing the production of electrolytic capacitor paper in China. For 13 years, the company will continue to focus on the research and development of specialty paper and power batteries. It is estimated that the EPS for 13-14 years is 0.23 yuan and 0.28 yuan respectively, and the corresponding 13-year PE and PB are 28 and 2.5 respectively. "prudent recommendation-A" investment rating is given for the first time.
Net profit in 2012 increased by-27% compared with the same period last year. In 2012, the company achieved sales income of 864 million yuan, operating profit of 105 million yuan and net profit of 85.97 million yuan, an increase of-10%,-29% and-27% respectively over the same period last year. The income is 0.18 yuan per share and 0.3 yuan per 10 shares (including tax)
Electrolytic capacitor paper has declined under the influence of macroeconomic: industrial capacitors are greatly affected by macroeconomic. Due to the slowdown in China's economic growth in the past 12 years, the macro-economy remains in the doldrums, the international financial crisis and the EU sovereign debt crisis restrict the recovery of the global economy, resulting in a reduction in demand for company products, a decline in industrial paper revenue by-11%, and a gross profit margin from 45.7% to 42.3%. We expect to improve next year.
Wufang wallpaper leads the consumption trend, and the demand for alternative imports is strong: from the perspective of environmental protection and cost performance, it has become a trend for consumers to use no harm wallpaper to gradually replace PVC wallpaper (with a capacity of 400000 tons at present); at the same time, China imports more than 50,000 tons from 2010 to 2011, and import substitution is rapid. The company is one of the enterprises with less production capacity, started in 2010, and now has a production capacity of about 8000 tons (tea and coffee filter paper, vacuum cleaner filter paper, non-woven wallpaper, tape paper, production can be collinear, visible demand adjustment). With the production of additional technical renovation projects will reach 14000 tons, will bring steady development of profits.
Automotive lithium-ion power battery project is worth looking forward to! The company began battery research and manufacturing in 2005 and entered the Ni-MH battery field through the acquisition of Kane batteries in 2009 (production capacity of 5000 million knots). One of the additional issuance projects in the past 10 years is 500000 sets of automotive lithium-ion power batteries. Recently, the company has continuously invested in research and development of key products. 2012 company has spent 46.6 million yuan on research and development (specialty paper and power batteries), accounting for 4.16% of net assets and 5.39% of operating income. We believe that with the continuous improvement of the company's R & D capability, the lithium-ion power battery project is worth looking forward to!
Maintain "prudent recommendation-A" investment rating: the company has formed a unique core technology in the field of electrical paper and special long fiber paper, and is the only domestic manufacturer capable of serializing the production of electrolytic capacitor paper. In 2013, we will continue to focus on the research and development of specialty paper and power batteries. It is estimated that the EPS for 13-14 years is 0.23 yuan and 0.28 yuan respectively, and the corresponding 13-year PE and PB are 28 and 2.5 respectively. "prudent recommendation-A" investment rating is given for the first time.