Reflective materials industry leader, covering "people", "cars" and "roads" safety protection. The company has always insisted on forward integration covering the safety protection of "people", "cars" and "roads", and backward integration to achieve self-sufficiency of core raw materials, combined with rich experience in the production and management of reflective materials. and in technology research and development, products, downstream application scenarios and other aspects of continuous innovation, forming a strong competitive advantage and first-mover advantage. At present, the company's reflective material products span the three major application fields of road safety protection, personal safety protection and vehicle safety protection, and continue to open up new civil markets and integrate digital and information construction. it is the reflective material enterprise with the largest scale and the most complete product range in the domestic reflective material industry.
Based on reflective materials, horizontally expand new functional thin film materials. At present, the company has six major production bases, which are located in Longyou, Zhejiang, Yongkang, Jiangsu and Huizhou, Guangdong. The production capacity of Yongkang's Daoming optoelectronic microprism reflective film is designed to reach 10 million square meters, the annual output of lithium-electric composite aluminum-plastic film is 15 million square meters, and the production capacity of optical grade PC/PMMA co-extruded film / sheet is up to 10 million square meters. it is the production base of microprism reflective film with the most advanced equipment and the most mature process. Qingxi old factory, also located in Yongkang, is mainly for lithium battery flexible packaging film expansion and graphene film production base, with an annual output of 35 million square meters of aluminum-plastic composite film production line for lithium-ion battery packaging and 1 million square meters of graphene film production line; Huawei New Materials in Changzhou specializes in the production of brightening film, composite film, decorative film, quantum film and other backlight film materials and components for LCD LCD.
Sales of aluminum-plastic film are expected to increase, speeding up the breakthrough of the inflection point in the field of new materials in the second track. 3500 million square meters of aluminum-plastic film production capacity has now entered the mobile phone terminal customer verification, into the mobile phone terminal cell field, affected by consumer electronics demand in the first half of 2022, unreleased production capacity, at the same time, the third quarter of 2022 has passed the downstream power customer verification, has now begun small batch supply, the future with the increase in customer demand is expected to increase aluminum and plastic film sales. While maintaining the stable development of the first track, the company will speed up the breakthrough of the inflection point in the field of new materials in the second track, which will further promote the development of the company in the field of new materials and films.
Performance declined in the first three quarters of 2022, and technological innovation is expected to continue to consolidate. The company's main income in the first three quarters of 2022 was 931 million yuan, down 0.82% from the same period last year; the net profit was 115 million yuan, down 9.28% from the same period last year; and 107 million yuan was deducted from non-net profit, down 0.9% from the same period last year. According to the semi-annual report, the gross profit margin of the products fell due to the rise in costs such as the price of raw materials and the decline in sales of products such as license plate film and Huawei optical film. Daoming Enterprise Research Institute is located in Hangzhou High-tech Industrial Development Zone, and the main body construction has been completed in 2021. After formal use, it will provide users with more high-quality products and solutions, and contribute more to the company's new round of rapid development. The company's technological innovation and strong R & D strength advantages are expected to continue to consolidate.
Investment advice: considering the uncertainty of the new project, the rating will not be discussed for the time being.
Risk hints: the risk of new capacity in the market; the risk of lower-than-expected demand in the downstream market; the risk that the production schedule of capacity under construction is not as expected; the risk of a substantial increase in the cost of raw materials.