The company issued a forecast of results for the first three quarters. In the first three quarters, the company is expected to achieve a net profit of 7796.79-83.1658 million yuan, an increase of 50% over the same period last year, of which Q3 is expected to achieve a net profit of 3229.36-34.2508 million yuan. The year-on-year increase of 65% was 75%, and Q1 and Q2 respectively achieved net profit of 143.47 million yuan and-17.75%, respectively. 119.12%. The high growth of the company's performance is mainly due to (1) the improvement of production efficiency and effective cost control under the collaborative management of subsidiaries; (2) actively expand new customers, tap the potential of existing customers, and increase the market share to a certain extent.
It is planned to raise an additional 602 million yuan and invest 18000 tons of high barrier composite capacity. The company intends to issue no more than 46.96 million shares to no more than 35 specific investors and raise no more than 602 million yuan for the construction of high barrier composite projects. After the fixed increase project is put into production, it is expected to increase the production capacity of high barrier composite materials by 18000 tons. Cold stamping aluminum has always been one of the company's main products, this project will build a cold stamping high barrier composite hard sheet production line, effectively reduce costs, improve the company's profit level, and further improve the company's core competitiveness. One of the products to be put into production in this project, "recyclable high barrier composite", is based on the design theory of material integration, and on this basis, advanced technology is adopted to endow the film with high barrier function. as a result, the traditional aluminum foil composite packaging materials can be widely replaced. The production line of "cycloolefin copolymer and polytrifluoroethylene multilayer co-extruded high performance bottles and needles" will be built in this fund-raising project. after the completion of the project, it will realize the domestic application of these two emerging materials, shorten the gap in the development of pharmaceutical packaging at home and abroad, and help the company establish differentiated product advantages. The company purchases advanced equipment, improves the level of intelligent production, speeds up the change of drug packaging technology, and further changes the industrial pattern that China's low-end drug packaging materials have overcapacity, while high-end drug packaging materials have to rely on imports.
Expand industrial investment and further consolidate the dominant position in the market. The company specializes in R & D, production and sales of high barrier packaging materials with direct contact with drugs. since its establishment, the company has focused on serving the downstream pharmaceutical manufacturing industry, continuously increasing investment in product research and development, adopting epitaxial acquisitions, and constantly enriching the product line. The company's business scale is increasing year by year, and its profitability is constantly increasing. In 2018 / 2019 / 2020H1, the operating income was 507 million yuan / 621 million yuan / 326 million yuan respectively, an increase of 35.03%, 22.44% and 7.24% over the same period last year, maintaining a steady growth trend.
With the sustained growth of pharmaceutical consumption and the policy encouragement of the pharmaceutical industry, the upstream pharmaceutical packaging industry will also usher in a new round of growth-driven. By the end of 2019, the market size of China's pharmaceutical packaging industry had stood at more than 100 billion yuan, an increase of 10.6% over the previous year, faster than the global growth rate. The proportion of plastic packaging and metal and its composite packaging is 43.3% and 24.0% respectively, gradually replacing glass packaging to become the mainstream products in the pharmaceutical packaging industry. At present, most of the enterprises in the domestic pharmaceutical packaging industry are small in scale and low in technology, so they can only produce a single product, while the introduction of policies such as volume procurement and consistency certification may promote the concentration of pharmaceutical companies' shares to the head. benefit its supporting packaging companies and accelerate the concentration of upstream pharmaceutical packaging. The development of the industry and the stable performance of the company are the reliable guarantee for the digestion of new capacity in the future.
The company has established a full range of customer cooperation network. At present, there are about 2000 customers who have business relations with the company, of which 70% of the top 100 enterprises in China's pharmaceutical industry or their subsidiaries have established cooperative relations with companies. Internationally, the company's products have been exported to the United States, Brazil, Thailand, Singapore, Iran and other countries and regions. According to the company's current revenue scale, existing customers have great potential to tap. We are optimistic about the company's long-term development prospects. We expect the company's net profit in 2020, 2021, and 2022 to be about 1.10, 155 and 19X respectively, corresponding to PE 34, 24 and 19X, maintaining a "buy" rating.
Risk tips: raw material price fluctuation risk, exchange rate fluctuation risk, intensified industry competition, new product expansion is not as expected, etc.
