While actively opening up tobacco packaging customers, the company continues to develop and enhance the competitiveness of products; in 2017, it began to layout bio-organic fertilizer and related product projects to explore the operation mode of environmental protection agriculture. From 2017 to 2019, the EPS is 0.16,0.21,0.23 yuan respectively, corresponding to the 18-year PE, PB is 27,1.8 times, maintaining the "prudent recommendation-A".
Benefit from the bottom of the downstream tobacco industry rebounded, tobacco business is expected to improve. In the past few years, domestic cigarette sales basically maintained at 4500-50 million cases. Due to the influence of the large channel inventory in the tobacco system before, domestic cigarette production declined in 2016-2017. After 2 years of digestion, sales growth began to be higher than output growth in the second half of 17 years. We expect the tobacco label business to improve, and the company's main products vacuum aluminized paper and printing business will rebound in 18 years.
Actively explore new models of agriculture. In June 2017, the company announced that it signed a "Cooperation Agreement on the use of Biotechnology to develop Organic Fertilizer and Series products" with the government of Tonghe County, intending to invest 210 million yuan in the development of biotechnology R & D and production of bio-organic fertilizer and series products, of which the fixed assets in the first phase were 160 million and the investment in the second phase was 50 million yuan. According to the announcement, the first phase of the project will build an organic fertilizer plant with an annual output of 150000 tons and an organic soybean oil plant with an annual processing capacity of 50, 000 tons of soybeans. The second phase of the project includes 250000 tons of organic rice seedling nutrient soil, annual processing of 20, 000 tons of wood vinegar biological products and the use of biotechnology to produce environmentally friendly biodegradable rice seedling plates using straw as raw materials.
Increase and strengthen the field of packaging materials and open up new growth points. In 2017, the company plans to issue non-public shares, and plans to raise no more than 510 million for environmental protection packaging construction projects and microstructure optical packaging materials projects. the new products have improved in environmental protection, anti-counterfeiting, novelty, appearance grade and other characteristics. the added value and profitability of the products will be improved to further increase the core competitiveness of the company's products.
Maintain the "prudent recommendation-A". While actively opening up tobacco packaging customers, the company continues to develop and enhance the competitiveness of products; in 2017, it began to layout bio-organic fertilizer and related product projects to explore the operation mode of environmental protection agriculture. From 2017 to 2019, EPS is 0.16,0.21,0.23 yuan respectively, corresponding to 18 years PE, PB is 27,1.8 times, maintain "prudent recommendation-A"
Risk hint: the project of using biotechnology to develop organic fertilizer and series products is lower than expected.