Company profile: top 10 domestic injection molding enterprises
The company specializes in the manufacturing field of plastic injection molding equipment (hereinafter referred to as injection molding machine). As one of the main suppliers of injection molding machines in China, the company has been selected as one of the top 10 enterprises in China's plastic injection molding machine industry for seven consecutive years since 2011, and its injection molding machines have been exported to 59 countries and regions.
Industry analysis: under the pressure of short-term high base, the industry is still optimistic in the long run.
After the rapid growth from 2016 to 2017, the injection molding machine industry is facing the short-term pressure of a high base background and warmer manufacturing demand, especially in the second half of 2018. However, from a long-term point of view, the expansion of plastic application fields, the upgrading of plastic consumption in China and the continuous improvement of the technical level of injection molding machines will bring long-term growth power to the demand of the industry. And in the process of industry evolution, the domestic competitiveness continues to enhance, and the share of Longtou City continues to increase.
Teri Machine: seize the downstream opportunity and span the industry cycle
Different from the injection molding machine industry, the key downstream applications are home appliances, automobile and 3C manufacturing, the company's injection molding machine equipment is mainly located in building materials, logistics, packaging and other market areas. The company's injection molding machine products have the outstanding characteristics of large-scale, and it is one of the few domestic enterprises that can produce 4000-ton large-scale three-plate injection molding machine. Mainframe revenue accounts for 48% of the company's total injection molding machine revenue. The application field of pipe fittings accounts for about 30% of the company's direct sales customers. The application of pipe fittings is expected to develop rapidly under the infrastructure investment of rural environmental protection demand, the company has developed in the field of building materials for many years, the products have strong industry competitiveness, and are expected to fully benefit the development of the industry when the demand goes up.
Profit forecast and investment suggestion
Combined with the development of the industry and the company, we estimate that from 2018 to 2020, the company's income will be 744max 972max RMB 1221 million, the net profit of its parent 88max 123max RMB 172 million, the current price corresponding to 18 years 33.4 XPEPE 19 years 23.9XPE, and 19 years 0.60X PEG. In terms of reasonable valuation, we use PEG valuation. Considering the company's development trend and industry cycle, give the company a reasonable valuation of 0.8 times 2019 PEG, corresponding to a reasonable value of 14.66 yuan per share. Considering that the company is expected to outperform the industry based on differentiated downstream applications, it covers the "buy" rating for the first time.
Risk hint: industry demand risk; downstream industry demand lower than expected risk; export business risk.