Main points:
China's leading manufacturer of intelligent packaging machinery. The company is a research and development, manufacturing and sales in one of the intelligent packaging machinery manufacturer, belongs to the subdivision of the liquid food packaging machinery industry. The company's main products include all kinds of filling and sealing equipment, intelligent packaging equipment, hollow container blow molding equipment, mainly used in dairy, medical and health, edible oil, daily chemical, condiments, beverages and other core links of production. At the same time, the company also provides customers with comprehensive solutions for intelligent packaging production line design planning, engineering installation, equipment life cycle maintenance, supporting supply of plastic packaging products, and so on. The main customers include world-renowned enterprises Coca-Cola Company, PepsiCo Inc, Danone, Nestl é, Mengniu, Yili, Wa, Unilever, Cofco, Guangming and so on, fully verifying the excellent performance and reliability of the company's products. In 2017, the company achieved an operating income of 685.9884 million yuan, an increase of 7.82% over the same period last year, and a net profit of 185.8108 million yuan, an increase of 15.36% over the same period last year.
The company's dairy industry accounts for more than 80% of revenue, and demand is expected to maintain steady growth. In the downstream application industry of the company, the proportion of income in the dairy industry has been maintained at more than 80%. In 2017, the company's dairy industry revenue was 610 million yuan, an increase of 7.09% over the same period last year, accounting for 88.94%. Compared with developed countries, China's per capita dairy consumption is still at a low level. In 2017, China's per capita milk consumption was 36.9kg, with an average of 100g per day, only 1/3 of the world average. According to the China Business Industrial Research Institute, the sales revenue of the national dairy processing industry in 2017 was 359.041 billion yuan, an increase of 6.77 percent over the same period last year.
According to Euromonitor statistics, the current market size of dairy products in China is 375.8 billion yuan. It is expected that the market size will reach 516.6 billion yuan in 2022, and CAGR will be 6.6% in 2017-2022.
The growth of dairy market capacity will lead to a continuous increase in equipment investment. At the same time, the continuous changes in the form of product packaging will also bring new equipment procurement demand.
New areas, post-road packaging, the international market three new growth points. 1) while maintaining the leading position in the domestic dairy packaging machinery industry, the company has actively expanded customers in medical and health, edible oil, daily chemical, food and other industries, and achieved certain results. Cofco Group and Yihai Kerry in the edible oil industry, Unilever and Perlaya in the daily chemical industry, Yabao Pharmaceutical in the medical and health industry, Tianjin Bokelin Pharmaceutical Packaging Technology Co., Ltd. (Tianshili subsidiary), Haizheng Pharmaceutical, Hengrui Pharmaceutical, Tangchen Baijian, Jiangzhong Dietotherapy and Wufangzhai in the food industry are all customers of the company. 2) in dairy, medical and health, edible oil and other industries, there are still a large number of manual packing, and the demand for automatic packaging is increasing rapidly. The series of intelligent packaging equipment developed by the company has a good potential for development. 3) compared with similar products of foreign advanced enterprises, the price of the company's products has a price advantage of 30%, 40%, and plays a role in replacing imported equipment in the domestic market. At the same time, it also has a certain competitive strength in the international market. There is a large space for the international dairy market, and the company will actively expand the markets of the countries around Belt and Road Initiative in combination with the national strategy of "Belt and Road Initiative".
Master the aseptic cutting-edge technology of liquid food packaging. The company has a deep understanding and mastery of high cleanliness and high precision filling technology, aseptic environment control technology, dry sterilization technology, linear equipment architecture design technology, fruit on-line dynamic mixing technology, high-precision mold ring labeling technology, online deviation correction technology, cluster packaging (packing) technology and other high-end technology, forming a unique core technology and production technology, and accumulated a large number of professional and technical personnel.
Aseptic technology in liquid food production is a cutting-edge technology in liquid food packaging. At present, only a few leading enterprises in the world can fully master this technology. Since 2002, the company began to develop the first generation of aseptic filling and sealing equipment for plastic bags. After more than 10 years of exploration and development, it has gradually developed from the aseptic filling technology in bags to the aseptic filling technology with the highest technical content and the greatest difficulty. It also has the ability to launch a series of aseptic filling equipment, and has a strong advantage in aseptic filling technology.
The production capacity of the fund-raising project will be released soon, and the acquisition of Italy's Magex company will cut into the field of unmanned retail equipment. The company's fund-raising project has been carried out smoothly, the first phase of the project has been put into production, and the production capacity is about to be released. The second phase of the project is expected to be completed and used in 2019. On April 23, 2018, the company announced the acquisition of a 100% stake in MagexSRL, an Italian manufacturer of unmanned retail equipment, for 8.286 million euros in cash. Magex SRL is an advanced European manufacturer of unmanned retail equipment with many patented technologies and ten series of unmanned retail equipment products, which can be used in unmanned retail of snack food, beverages, dairy products, ice cream, frozen food, pharmaceutical supplies, industrial supplies, cultural goods and fashion products. The brand is well known all over the world, and the equipment is mainly sold to Europe, North America, South America and Africa. In 2017, Magex SRL achieved revenue of 2.618 million euros and a net profit of 385000 euros. Through this acquisition, the company introduces the advanced European unmanned retail equipment technology into China, combined with the company's R & D and manufacturing capabilities, which can effectively reduce the production costs of the target company and expand the international and domestic markets. enhance and improve the company's international operation capacity, promote the global layout of the company's unmanned retail equipment business, bring new development opportunities and create new profit growth points for the company.
The asset-liability ratio is low, the operating cash flow is good, and the equity pledge rate of the company's shareholders is low. At the end of 2017, the company's total assets were 2.105 billion yuan, including 256 million yuan in monetary funds and 800 million yuan in bank wealth management products, with an asset-liability ratio of 13.44% after excluding pre-sale accounts. The company has a strong ability to pay back money, 2013-2017, and the ratio of net operating cash flow to return net profit is 1.760.43, 0.87, 0.87 and 1.180.71. According to Wind statistics, the proportion of shareholders' pledged shares in tradable shares is only 0.08%.
Investment advice:
We estimate that the net profit attributed to the owner of the parent company in 2018, 20119, and 2020 is 2.09, 2.28, 254 million yuan, 0.77, 0.85, 0.94 and 0.94, respectively. The company is a leading manufacturer of intelligent packaging machinery in China, which is in a leading position in the field of dairy packaging, with excellent financial indicators, and belongs to a steady growth type of high-quality target. We give it an "overweight" investment rating for the first time.
Risk Tips:
The risk of intensified market competition and declining gross profit margin of products; the expansion of the downstream market is blocked, and the promotion of fund-raising projects is not as expected.
