Domestic thermal transfer ribbon industry leader, high growth cycle has opened Hangzhou Tiandi Digital Technology Co., Ltd. was established in 2002, is a professional engaged in thermal transfer ribbon product research and development, production and sales of national high-tech enterprises, is one of the first domestic enterprises to develop bar code printing thermal transfer ribbon. In recent years, according to the market changes, the company has improved the market layout, persisted in the reform and optimization of the management mode, and worked hard to increase its sales share and market share. According to the company announcement, the company formulated the outline of the five-year Development Plan (2021-2025) in April 2021, and achieved 2 billion yuan in main business income by 2025, belonging to the parent company's net profit of 200 million yuan.

The market demand for the global thermal transfer ribbon is growing steadily, and the share of the Chinese market is gradually increasing. According to the data of the consumables Special Committee of the China computer Industry Association, from 2015 to 2019, the average annual growth rate of global thermal transfer ribbon sales is about 5%. Based on the ex-factory price of thermal transfer ribbon terminal products, the global market capacity in 2019 is about 1.433 billion US dollars. Of this total, wax-based ribbons are about $645 million, mixed and resin-based ribbons are $358 million and $430 million, respectively. According to the data of China computer Industry Association, the sales of heat transfer ribbons in China in 2019 was 819 million yuan. It is expected that China's bar code recognition industry will still maintain a higher growth than the global average, the proportion in the global heat transfer ribbon will gradually increase, and the annual growth rate of the industry will remain at about 7%.

Core technology builds competition barriers, and the layout of overseas markets has achieved remarkable results. the company has a mature, stable, professional and dedicated R & D team, which can support the company's development strategy in both R & D breadth and depth. With the advantages of research and development and independent innovation, the company is one of the first local enterprises to develop mixed-based and resin-based products, breaking the monopoly of international enterprises in high-end products. The company is the first domestic hot transfer carbon belt manufacturer to carry out overseas layout, and has set up subsidiaries in the United States, Britain, India, Mexico, Brazil, Canada and France. The advantage of overseas layout has gradually narrowed the gap between the company and international first-class enterprises, and its market share in America and Europe has increased steadily.

Investment advice and profit Forecast

The company is a leading enterprise in the field of thermal transfer carbon belt, which has high popularity and competitive advantage in the world, and has a broad space for sustainable growth in the future. Without considering the performance increment brought by future extension M & A, it is predicted that the operating income from 2023 to 2025 will be 7.53,9.37 and 1.149 billion yuan, the net profit will be 0.55,0.81 and 107 million yuan, the EPS will be 0.40,0.58,0.78 yuan per share, and the PE will be 36.60,25.14,18.90 times. In the past three years, the company's PE TTM has mainly run between 40 and 100 times, giving a target PE of 50 times in 2023, with a target price of 20.00 yuan. Recommend for the first time, give a "buy" rating.

Risk hint

Major raw material price fluctuation risk, market price fluctuation risk; core technology leakage and core technical personnel loss risk; international trade risk; exchange rate fluctuation risk; goodwill impairment risk.