This report is read as follows:
The company deeply ploughs the field of environmental protection modified polymer materials, which is the future direction of polymer materials, and the demand is expected to continue to improve.
At the same time, the company's fund-raising projects continue to strengthen the main business to consolidate competitive advantages, and strong sales of products are expected to provide long-term growth space.
Main points of investment:
Increased rating: the company's revenue from 2017 to 2019 is expected to be 724,843,013 million yuan, an increase of 14.6% 16.5% and 20.1% respectively over the same period last year. The net profits attributed to the parent company were 0.62 euro, 0.84 billion yuan respectively, an increase of 3.2%, 36.3%, 39.4% respectively over the same period last year. With reference to the valuation of the comparable company, and considering that the company is a new stock, a certain valuation premium is given to 50 times 2017 price-to-earnings ratio, corresponding to the target price of 28.91 yuan, and the "overweight" rating is given for the first time.
In the mature stage of chemical industry, modified materials are more effective than newly synthesized polymer materials, which is one of the new directions of polymer materials. Downstream shoes, electronics, electrical appliances, automotive demand is improving, the future use of modified materials is expected to continue to grow, the company's technology, brand advantages, is expected to benefit.
The demand for environment-friendly modified polymer materials continues to grow: the company's products are EVA, TPR environmental modified materials and products, modified recycled engineering plastics, which are widely used in shoe materials, electronic accessories and other fields. The market is not fully aware that the demand for modified materials is expected to continue to grow, and we believe that the improvement of the shoe / electronics / automotive industry will strongly support the demand. The demand for shoes has a compound annual growth rate of more than 8%, and the market for sports shoes has exceeded 80 billion. On the electronic side, the production of mobile phones exceeded 1.8 billion in 2015. In terms of home appliances, the demand for modified plastics for air conditioners, televisions, refrigerators and washing machines reached 2.34 million tons in 2016, and modified materials are an important magic weapon for automobile weight loss.
The IPO project consolidates its competitive advantage, and its strong sales provide room for growth: the company has 3191 core technology formulations, and the IPO fund-raising project is expected to be completed in early 2019. The continued addition of EVA and R & D center technological innovation projects will effectively consolidate the company's technological innovation capability and market position. The consumption of modified materials has reached 11% CAGR in the past five years, which will provide long-term growth space for the company's business.
Risk hint: the risk of price fluctuation of major raw materials; the greater risk of the amount of accounts receivable.