Main points of investment:
Huibo new materials: deep ploughing high-end composite materials of the overall solution provider: the company is mainly engaged in special formula modified epoxy resin research and development, production and sales. Is a high-tech enterprise focusing on high-performance composite materials, integrating epoxy resin product research and development, production and sales.
From 2020 to 2022, the company achieved operating income of 1.432 billion yuan / 1.689 billion yuan / 1.775 billion yuan, YOY of 159.79%, 17.89%, 5.14%, and a compound annual growth rate of 47.69%. The net profit of homing was 56 million yuan / 67 million yuan / 64 million yuan, and the YOY was 148.42%, 19.21%, 4.54%, respectively, and the annual compound growth rate of three years' net profit was 41.40%. During the latest reporting period, the company's operating income from January to June 2023 was 715 million yuan, down 23.46% from the same period last year, and its net profit was 31 million yuan, up 99.14% from the same period last year.
The company has a strong ability of product innovation and process innovation: in 2020,2021,2022, the total R & D cost of the company is 108.2534 million yuan. The company pays attention to the R & D investment in technology and products, and the company's R & D investment has formed a number of new patents and patent applications, constantly optimizing and upgrading existing products, expanding product application fields, and ensuring that the company has continuous innovation. it opens a broader space for future development.
The company has formed 20 core technologies based on hypoallergenic hand paste technology, including 23 invention patents and 68 utility model patents, which are mainly summarized by the company through independent research and development, innovation and production practice.
The company's main business: four plates parallel development: in 2022, the company's main business income can be divided into four sectors according to product type. they are epoxy resin for wind turbine blades (1.493 billion yuan, 84.13%), epoxy resin for new composite materials (199 million yuan, 11.22%), epoxy resin for electronic and electrical insulation packaging (82 million yuan, 4.62%), quantum dots related products and other products (500000 yuan). 0.03%).
Valuation and investment advice: we choose an analogy with the company's main business, which currently gives Shangwei New Materials a market capitalization of 3.137 billion yuan and PE (TTM) 39.4 times (as of October 19, 2023). We continue to be optimistic about the future development of the company, and expect the company to maintain steady revenue and profit growth from 2023 to 2025. The EPS from 2023 to 2025 is 1.05,1.18,1.43 yuan. According to the FCFF valuation, the value per share is 24.57 yuan, corresponding to the 2023 PE is 23.4 times, close to the company's offering price, given a neutral rating.
Risk tips: industrial policy adjustment risk, raw material supply and price fluctuations, high customer concentration risk, product application field concentration and competition aggravate risk, the risk of gross profit margin decline.