Net profit increased by 31% year-on-year, and net profit in the first quarter of this year is expected to grow by 50-80% year-on-year. In 2014, the company achieved operating income of 970 million yuan, an increase of 33.55% over the same period last year; the net profit attributable to shareholders of listed companies was 115 million yuan, up 30.98% from the same period last year; the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 111 million yuan, an increase of 34.81% over the same period last year; and EPS was 0.73 yuan. The company plans to hand out 0.8 yuan for every 10 shares to 15 shares. The company forecasts a 50-80% year-on-year increase in net profit attributable to shareholders of listed companies in the first quarter of 2015.
The sales structure has been continuously optimized, and the proportion of new products and exports has increased significantly. With the increasingly fierce competition in the traditional application field of sports shoes leather, the company has greatly reduced the production and sales of sports shoes leather, and the new products developed by the company, such as imitation leather, have quickly opened up the market because of their excellent performance and higher performance-to-price ratio. and dyeable base cloth, automobile interior leather, shoe leather and other new products also began to gradually increase. The income of suede leather in 2014 was 235 million yuan, a sharp increase of 136.96% over the same period last year. The development of the company's foreign trade business is good, and the sales volume outside the products has been improved. In 2014, the company's export revenue was 221 million yuan, an increase of 37.7% over the same period last year, accounting for 24.1% of the company's main business income, and the export business profit accounted for 40.7% of the company's main business profit.
The new production capacity will be built and put into production by the end of the year, and the company's market share will increase significantly. The total investment is 4.181 billion yuan to build a new project with an annual output of 75 million meters for industrial nonwovens superfiber materials. The project is initially planned to complete the first phase (50 million meters) of acceptance and formally put into production in December 2015. According to the company's feasibility report, when the project is fully completed, it will increase annual sales revenue by 3.714 billion yuan and annual profit by 790 million yuan, a substantial increase over the current level. At present, there are no plans to build or expand capacity in the industry, and after the project is put into production, the company's domestic market share will be greatly increased.
Benefit from the fall in oil prices. The main raw materials of ultra-fiber leather are nylon 6, polyethylene, polyol and pure MDI, and nylon and polyethylene account for about 37% of the cost. Nylon 6 and polyethylene are closely related to the price of crude oil. As the price of crude oil falls sharply and maintains at the bottom, the price of nylon 6 and polyethylene also decreases sharply compared with the previous month. With the widening of the price gap, the company's ultra-fine leather wool interest rate is expected to increase.
Benefit from stricter environmental protection policies. At present, in the domestic synthetic leather market, PU synthetic leather accounts for 70%, while PU synthetic leather accounts for 25%, while superfiber PVC synthetic leather accounts for only about 3%. Due to the large amount of plasticizers and stabilizers added in the production process and products of PVC synthetic leather, Europe and the United States and other developed countries have been completely eliminated due to environmental protection and other reasons. In addition to ordinary synthetic leather, the leather market will gradually be replaced by superfiber PU synthetic leather, which is about 20% of the whole synthetic leather market. In recent years, a large number of backward production capacity of natural leather has been forcibly shut down because of environmental protection. In synthetic leather, the performance of superfiber PU synthetic leather is closest to that of dermis, and the price is only 1max 4-1max 5 of genuine leather.
Give the company a "recommended" investment rating for the first time. In the future, with the upgrading of domestic consumption, stricter environmental protection, expansion of application fields and withdrawal of part of the leather market, there is a huge alternative space for superfiber PU synthetic leather products. We estimate that the company's EPS in 2015 and 2016 will be 1.03 yuan and 1.32 yuan respectively, and the current price-to-earnings ratio is 31 times and 24 times respectively.
