As a leading enterprise in the enamel industry, the company has turned its performance from deficit to profit after two years of adjustment, showing an inflection point, covering it for the first time and giving it a "prudent recommendation" rating.
Deeply ploughing the enamel industry for 16 years to create a leading enterprise in the industry. The company was founded in 2003 and listed in 2011. Since its establishment, the company has been committed to the research and development, design, manufacture, sales and installation of new functional enamel materials, and is the market leader of the industrial application of new functional enamel materials in China.
The investment in underground municipal infrastructure is strong, and the interior facade enamel business is strong. In 2018, the revenue of interior facade enamel business was 145 million yuan, accounting for about 50%. 2019H1, revenue of interior facade decoration enamel materials reached 169 million yuan.
The company will continue to benefit from the prosperity of the rail transit industry. in addition, with the development and utilization of above-ground space gradually saturated, the development of urban underground space has become an important way to alleviate the shortage of urban land resources and improve the environment. The company's facade enamel business is expected to benefit from underground municipal infrastructure investment.
Desulphurization and denitrification transformation market warmed up, industrial protection enamel orders increased. Since 2019, the desulphurization and denitrification transformation market of energy-saving and environmental protection power plants has warmed up, and the company's orders have continued to rise. In 2019, H1, the company's operating income of industrial protection enamel materials reached 63.4603 million yuan, an increase of 50.15% over the same period last year.
The enamel board curtain wall is gradually recognized, and the permeability is expected to increase. At present, the total output value of curtain wall engineering industry in China has reached 400 billion yuan. Over the past 19 years, as a new type of curtain wall material, the recognition of enamel board curtain wall has been significantly improved, and the application permeability of the material is expected to continue to improve. In 2019, the company's enamel panel curtain wall material achieved a business income of 6.5531 million yuan. Orders are expected to continue in the second half of the year.
The layout of the hydrogen energy field may become a growth point of performance in the future. In recent years, the state has strongly supported the development of hydrogen energy. It is estimated that by 2050, the market space of hydrogen energy equipment will reach 840-168 billion yuan. The company invested in Shunhua New Energy in 18 years and established hydrogen Energy equipment Company in 19 years. The business of hydrogen energy industry is expected to become a new profit growth point of the company.
As a technology leader in the enamel industry, the company ploughs the enamel application field, the company's main business is significantly improved, the layout of hydrogen energy is expected to become a new profit contribution point, after two years of business adjustment, the performance inflection point appears, the company is expected to 2019-2020 EPS is 0.51,0.90 yuan, corresponding to PE is 24.6 and 13.8 times, the first coverage, given the "prudent recommendation" rating.
Risk hints: the risk of bad debts of accounts receivable; the risk of suspending listing; and the construction of rail transit is not as expected.