Main points of investment
The company takes the lead in breaking through the technical barrier to realize the batch supply of high-end HVLP copper foil. Copper foil production requires very high technology, and the production capacity of high-end copper foil is an important competitive barrier for enterprises in the industry. The company's high-frequency and high-speed PCB copper foil has significant advantages in domestic enterprises, in which RTF copper foil production and marketing capacity ranks first in domestic enterprises, and in 2022 HVLP1 copper foil has been supplied to customers in batches, HVLP2 copper foil has passed the end customer full performance test, HVLP3, RTF2 and RTF3 copper foil has broken through the core technology. 5G RTF copper foil, the company can achieve sales volume of 300t / month, production and marketing capacity ranked first among domestic enterprises, that is, the company has significant advantages in the field of high-performance PCB copper foil; lithium battery copper foil, the company ranked fifth in 2020 shipments of domestic lithium battery copper foil manufacturers, is one of the domestic head lithium battery copper foil manufacturers.
The customer base is good, and most of them are the top customers in the industry. The company is one of the leading enterprises in the production of high-performance electronic copper foil products in China. It has established long-term cooperative relations with well-known manufacturers such as Shengyi Technology, Taiwan Technology, Taiwan Optoelectronics, Shanghai Power, South Asia New Materials, BYD, Ningde Times, Guoxuan Hi-Tech, Xing Heng shares and other well-known manufacturers, and has become its long-term supplier and won its recognition of the company's products and services.
Continue to promote the construction of production expansion projects to lay a solid foundation for the company's volume expansion. The total production capacity of the company's electronic copper foil products is 55,000 tons / year, of which PCB copper foil is 35,000 tons / year, lithium battery copper foil is 20,000 tons / year, and the production capacity under construction is 25000 tons, which is expected to reach production in 24 years.
5G, cloud computing and other industries are developing rapidly.
With the vigorous development of industries represented by 5G technology, cloud computing, data center, Internet of things, artificial intelligence, new energy vehicles, intelligent driving and smart home, including low profile copper foil for high-frequency and high-speed electronic circuits, extremely thin copper foil for IC packaging substrate, copper foil for high-end flexible circuit boards, and high-end electronic copper foil products such as ultra-thick copper foil for high-current and high-power substrate, will be the future development direction of copper foil for electronic circuits.
According to estimates, in 23-25, the demand for high-end standard copper foil is expected to reach 610 plus 7.13 million tons respectively, with an industry growth rate of 7.4 percent 16.7 percent and 3.1 percent respectively. Superimposed domestic substitution continues to promote, to 2025 market demand for HVLP series of high-end copper foil is about 11.01t, overall, 2025 standard copper foil market space is expected to reach 15.407 billion yuan.
Profit forecast
It is estimated that in 2025, the company will achieve an operating income of 45.07max 60.93 / 7.587 billion in 2025, an increase of 16.31%, 35.20% and 24.52% respectively over the same period last year; and the net profit returned to its home will be 3.25%, 5.16%, 691 million yuan, respectively, an increase of 22.41%, 59.09%, 33.80%, and the corresponding EPS is 0.390.62, 0.83 respectively. Taking the closing price of 14.23 yuan on July 3, 2023 as the benchmark, the corresponding PE of 2023-2025E is 39.90, 25.08 and 18.75 times respectively. Cover for the first time, giving a "buy" rating.
Risk Tips:
The macro economy fell short of expectations; the Federal Reserve raised interest rates more than expected; and capacity construction fell short of expectations.