Enamel material is a kind of composite material, which has the advantages of super corrosion resistance, easy cleaning and maintenance, beautiful and flexible color, long-term fidelity, non-toxic and non-radiation, environmental protection and durability. Kaier Xin material is a leader in the field of domestic enamel products, its business is focused on architectural decoration enamel and industrial protection enamel, committed to expanding and promoting the application field of enamel materials. Although there were many difficulties and challenges in the past two years, they are now open.
Traffic power, building facade decoration enamel demand has increased greatly
Benefiting from the top-level strategic planning of the national transportation power, as well as the promotion of the planning and layout of key urban agglomerations such as Beijing-Tianjin-Hebei, Yangtze River Delta and Guangdong-Hong Kong-Macau Greater Bay Area, the mileage of urban rail construction and operation across the country has increased by more than 15% over the years, and the market space is huge. Since the end of the 18th year, domestic rail transit planning has been intensively approved and construction has started. It is expected that in the next few years, the construction of urban integrated three-dimensional transportation network will become one of the important starting points of infrastructure investment. Building facade decoration enamel is the first choice for decoration materials in rail transit stations, airports, tunnels and other public fields because of its excellent performance. The demand for decoration materials is growing rapidly, and the brand influence brought by superimposed participation in international infrastructure demonstration projects such as Hong Kong-Zhuhai-Macao Bridge and Daxing Airport project has increased significantly, and the company's orders have increased significantly. The outstanding major contracts disclosed by the company in the first half of 1919 (more than 30 million yuan) totaled 297 million yuan (396 million yuan as of October 11).
The profit of thermal power is under pressure, and the boiler intelligent combustion system helps the company transform its energy-saving service.
Domestic environmental protection policy continues to be strict, the power industry in-depth environmental protection governance, non-electricity industry comprehensive management field, superimposed coal-power linkage to eliminate the profit pressure of power enterprises, industrial protection enamel product demand continues to usher in good news. Moreover, through continuous technological innovation and research and development, the boiler intelligent combustion system of Kaier New Materials helps the power plant to further save coal and reduce consumption. The project has market demand and feasibility economically, and the company's business scope is further extended, which is expected to bring new performance increments in the later stage.
Profit Forecast and Investment rating
The Kaier new material facade decoration enamel business benefits from the restart of domestic infrastructure, the rapid growth of demand and the enhancement of the influence of superimposed brands, resulting in a significant increase in orders; industrial protection enamel business with the recovery of the environmental protection market, superimposed transformation of the overall engineering service providers and R & D bring business expansion and contribute new increments.
We predict that the company's EPS for 19-21 will be 0.48,0.80,0.92 yuan. Give 25 times the valuation level of PE in 19 years, corresponding to the target price of 12.00 yuan, cover it for the first time, and give it a "overweight" rating.
Risk Tips:
Downstream infrastructure demand is lower than expected, environmental protection business development is not as expected, bad debts of accounts receivable, reduction of major shareholders and other risks.