Company profile:
The company is a leading provider of functional plastic diaphragm materials in China, specializing in the research, development, production and sales of functional plastic diaphragm materials. At present, it mainly provides customized smart card substrates for domestic and foreign smart card production enterprises and units.
The controlling shareholder of the company is Jiangsu Huazhi Industry and Trade Industry Co., Ltd., which holds 68% of the shares before the issuance of the company; the actual control is Li Zhenbin, which holds 59.44% of the shares before the issue of the company.
Current situation and prospect of the industry
The plastic processing industry has shown a trend of rapid development in recent years. Plastic processing industry takes plastic processing as the core, involving synthetic resins, auxiliaries and additives, plastic processing machinery and moulds and other fields.
In recent years, the industrial scale is constantly expanding, the output of products is increasing year by year, and the whole industry is constantly developing and growing, which has become an important part of our national economy. According to the statistics of the National Bureau of Statistics, the output of primary form plastics in China has increased rapidly in the past decade, from 23.0886 million tons in 2005 to 78.0766 million tons in 2015, with an average annual growth rate of 23.83%.
The implementation of environmental protection policies and regulations will make more room for the development of environment-friendly plastic materials. Near plastics as polymer materials have the characteristics of corrosion resistance, which also makes ordinary plastic products difficult to degrade naturally, resulting in environmental pollution. In recent years, countries around the world have issued laws and regulations to curb the environmental pollution caused by plastics, and China's newly promulgated environmental protection law has also made more stringent provisions.
The implementation of the new environmental protection laws and regulations will have an impact on the existing industrial structure, and at the same time, it is also a rare opportunity for new environmentally friendly materials, which will promote the business development of high-grade environmental protection materials.
Highlights of the company:
Domestic medium-and high-grade smart card substrate industry leading enterprises. The company has always adhered to the route of technological research and development and independent innovation, and currently has 33 patents, including 15 invention patents and 18 utility models, and has mastered the core technology of manufacturing high-performance new environmental protection diaphragm materials such as PETG and PHA, and has accumulated a number of leading core technologies in the industry, and the technical indicators of some products have reached the domestic leading and international advanced level. The company's products are used in finance, transportation, medical care, electronic information, social security, security, decoration, packaging and other fields. After years of industry exploration and continuous research and development of new polymer material production technology and formula, the company has developed into one of the enterprises with the largest production scale, the highest product grade and the most complete range of products in the domestic medium-and high-grade smart card substrate industry. The company is China's "Golden Card Project" supporting enterprises, the company PETG substrate for the Ministry of Public Security designated China's ID card composite materials only supplier. The company has established stable cooperative relations with listed companies such as Dongxin Peace, Hengbao and Tianyu Information, and government document production units such as the first Research Institute of the Ministry of Public Security. Jade Group, Opel, Jinyatuo, Jinbangda Co., Ltd. and other well-known transnational business card printing groups or their subsidiaries and other high-end customers have established stable cooperative relations.
Fund-raising project
1. It is proposed to raise 107 million yuan for the smart card substrate project with an annual output of 8000 tons.
2. It is proposed to raise 49 million yuan for the project with an annual output of 4000 tons of functional polyester film.
3. It is proposed to raise 44 million yuan for the R & D center project.
Main potential risks
The risk of a decline in the prosperity of the downstream smart card manufacturing industry. The company belongs to the functional plastic diaphragm manufacturing industry. at present, it mainly provides customized smart card substrate for domestic and foreign smart card production enterprises and units. the industry development trend of smart card segments such as ID card, bank card, communication card and social security card has a great impact on the company's business. If the future national macro policy, personal consumption habits and other factors lead to major adverse changes in the smart card industry, the company's business development may be significantly adversely affected.
The risk that rising raw material prices will have an impact on a company's profitability. In each period of the reporting period, the proportion of direct materials in the company's production cost is more than 70%. The company's main products smart card substrate uses PVC resin as the main raw material. If the price of raw materials rises sharply in the future, and the company fails to absorb the rising factors of raw material prices by adjusting product prices, the company's profitability is at risk of fluctuation.
Valuation
The issuer works in the rubber and plastic products industry, and as of October 23, 2017, the average static price-to-earnings ratio for the latest month released by the CSI was 50.08 times. It is estimated that the company's earnings per share in 2017 and 2018 are 0.69 yuan and 0.76 yuan respectively, combined with the current market conditions, the initial pressure is expected to be 34 yuan-39 yuan.