Main points of investment

This Wednesday (August 2), there is a gem listed company "Hengda Xincai" inquiry.

Hengda New Materials (301469): the company specializes in the research and development, production and sales of special paper base paper, and has made a leading position in the field of middle and high-end medical and food packaging base paper. From 2020 to 2022, the company achieved operating income of 672 million yuan / 758 million yuan / 953 million yuan, YOY of 15.19% 12.77%, 25.79%, compound annual growth rate of 17.78%, net profit of 90 million yuan / 104 million yuan / 97 million yuan, and YOY of 179.83%, 15.40%, 5.95%, respectively, and the annual compound growth rate of three years' net profit was 44.82%. During the latest reporting period, the company's operating income from January to June 2023 was 385 million yuan, down 13.38% from the same period last year, and the net profit was 42 million yuan, down 29.98% from the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit of 65 million yuan to 78 million yuan from January to September 2023, an increase of-24.21% to-9.05% over the same period last year.

Investment highlights: 1, the company's high-end medical and non-container food packaging base paper products have a strong competitiveness, into the well-known customer supply chain system. The quality of the primary packaging base paper of middle and high-end medical and non-container food produced by the company is comparable to that of Arjowiggins, Sterimed, BillerudKorsnas and other international giants, and the products have entered the terminal well-known customer supply chain system. In the medical field, the company supplies to domestic well-known medical supplies and equipment manufacturers, such as Zhende Medical, healthy Medical and Weihai Weigao, for final sterilization (first packaging and then sterilization) packaging bags and paper packaging of medical supplies and instruments. In the food field, the company's products are finally applied to the primary packaging of fast food chains such as KFC, Dexter, Burger King, Subway and other fast food chains through Deutsche League Group, Zijiang Enterprise, Nanwang Technology and other large food packaging enterprises at home and abroad. as well as paper straws of chain beverage stores such as Starbucks Corp, Xi Cha and Honeyue Ice City, breaking the monopoly of foreign investors in the field of non-container food packaging base paper. 2. Under the output caliber, the company is ahead of the market share at the present stage, and the new production capacity is expected to further consolidate the market share. In 2021, the company's domestic output of medical packaging base paper accounted for 16.84%. In 2021, the company's food packaging base paper output accounted for 12.71% of the national non-container food packaging base paper output. In order to further consolidate the company's share advantage, the company actively expanded its production capacity; according to the company's prospectus, the IPO Hengchuan New material Line 3 project was completed and put into production in April 2022. At the same time, according to the company's website, the "Hengchuan New Materials annual production line of 50,000 tons of new packaging paper and 10,000 tons of food and medical products deep processing project", which started in the second half of 2022, is expected to start production in the fourth quarter of this year. At that time, the company will form an annual production capacity of 166000 tons, an increase of 56.60% over the existing production capacity (106000 tons as of the date of the prospectus).

Comparison of listed companies in the same industry: comprehensively considering business and product types, Xianhe shares, Kane shares, Minfeng Special Paper, Hengfeng Paper, Wuzhou Special Paper, Huawang Technology and Qifeng New Materials are comparable listed companies of Hengda New Materials; from the above comparable companies, the average income in 2022 is 3.682 billion yuan, and the sales gross profit margin is 13.94%. Excluding negative and extreme values, the comparable PE-TTM (arithmetic average) is 22.36X; comparatively speaking, the revenue scale of the company is lower than the industry average, and the gross profit margin is higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.