The company has ploughed the packaging industry for more than 20 years and has formed a rich product system and quality service. The company can produce hundreds of kinds of packaging materials including plastic packaging film, plastic tray and plastic cushioning material, with a rich product line, which is mainly used in the production turnover and sales packaging of electronic products such as computers, smart phones, household appliances and so on. The company takes product quality, delivery stability, after-sales service, one-stop product line and other comprehensive service capabilities as the core competitiveness.
At the same time, subsidiaries have been set up in major electronic products concentration areas such as Shenzhen, Langfang, Qingdao, Wuhan, Zhuhai, Zhengzhou, Chengdu, Suzhou, Nanning, Chongqing and Yantai. Establish cooperative relations with more than 200 domestic and foreign enterprises, such as Foxconn, Haier, Flextronics, Ricoh, Epson, TPV Technology, Yada Electronics, Watson Motor, Skyworth, TCL, Shenzhen Super Optoelectronics, Shenzhen Great Wall, Hisense and so on. In 2018, the company achieved an operating income of 911 million yuan, an increase of 52.36% over the same period last year, and a net profit of 49 million yuan, an increase of 28.02% over the same period last year.
The company acquires Fidelity to achieve complementary advantages and coordinated development. The company bought a total of 51% of Fidelity's equity with 117 million yuan. Fidelity is mainly engaged in the production and marketing of foam packaging and paper packaging, including polystyrene foam (EPS), composite packaging formed by EPS and auxiliary materials, which is an important supplement to the company's existing products. This acquisition will help the company to further improve the industrial layout and spatial layout of the plastic packaging field, optimize and enhance the one-stop supply capacity. And Fidelity has promised that the net profit for 2018-2020 will not be less than 18 million yuan, 25 million yuan and 35 million yuan respectively.
The company actively develops new products to meet the needs of customers. The company continues to increase the R & D investment and promotion of fully biodegradable plastic film projects, biodegradable gas bead buffer film projects, PLA biodegradable materials blister products and visual plastic packaging materials, in order to tap the potential needs of customers and actively open up new product markets. The basic formula and process of the all-biodegradable plastic film project have been determined, and if the trial is successful, the new product is expected to bring performance growth.
Profit forecast and investment rating: based on the company's acquisition of Fidelity to expand its product line and research and development of new products, the company's future performance is expected to maintain certain growth, we expect the company's net return profit for 2018-2020 to be 0.49, 0.60 and 0.75 million, respectively, and EPS 0.58, 0.71 and 0.89, respectively. Cover for the first time and give an overweight rating.
Risk tip: Fidelity's performance is not as expected, new product launch is not as expected, downstream demand is not as expected, and the price of raw materials has risen sharply.