The company's main products are color printing composite flexible packaging materials, business contribution company more than 70% of revenue. The company mainly produces and manages high-tech products such as vacuum coating, multi-functional film, color printing composite flexible packaging materials, paper-based composite packaging materials, new pharmaceutical packaging materials, plastic products, fine chemical products and so on.
The company has established Huangshan as the industrial center and developed its layout to the whole country. at present, it has set up subsidiaries in Guangdong, Hebei and Shaanxi.
The color printing composite flexible packaging materials produced by the company are lightweight and plastic, with the characteristics of high barrier, cooking resistance, freezing resistance, fresh preservation and so on, and the cost is relatively lower than that of metal, glass and other packaging materials, so it is widely used in food, daily chemical, medicine and other fields. In 2022, the company's revenue increased by 3.3 billion with an increase of 9.3%. The company's revenue scale showed a steady growth trend from 2018 to 2022. 2023H1 realized operating income of 1.605 billion yuan, an increase of 4.71% over the same period last year. In terms of products, the company's revenue is mainly contributed by the color printing packaging materials business, which accounts for about 77% of the plastic flexible packaging film business revenue in 2022, reaching 13.88% in 2022.
Plastic packaging is an important part of the packaging industry. According to the data of China Business Industry Research Institute, plastic film / plastic packaging and containers accounted for 28% and 20% of the packaging industry in 2021. Flexible packaging based on plastic film plays an important role in all kinds of packaging products, accounting for more than 40% of the total plastic packaging materials.
The market value of single material is expanding, and it is becoming the leading direction of flexible packaging industry. The single material packaging material can greatly reduce the process complexity of recovery and reuse while ensuring the necessary functions such as packaging barrier and printability, without the need to peel off different plastics, it is expected to achieve 100% recycling.
Single material can not only reduce plastic pollution, but also provide important resources for economic development.
The company continues to make efforts in the new material business, and the construction process of thin film production capacity is accelerated. Yongxin New Materials, a subsidiary of the company, actively promotes the "new BOPE film project with an annual output of 33000 tons", innovates and develops single material "zero carbon packaging", single material recyclable packaging and sustainable packaging, which has been successfully applied to many customer packaging products. The company continues to promote the construction of new multi-functional film material projects, actively cultivate new performance growth points, and promote the healthy and sustainable development of the company.
After the entry into force of RCEP, the tax revenue of some export places of the company's products has been reduced, which will help to establish a stable, continuous and smooth supply chain with overseas customers, or provide more opportunities for the company. Among the RCEP members, Japan, Australia, New Zealand, Vietnam, Malaysia and Thailand are all more than 40 per cent dependent on imports of Chinese plastic products. The company's current international business market is mainly in Southeast Asian countries, and the entry into force of RCEP may provide new opportunities for the company's business expansion in Australia and other regions.
Profit forecast and valuation: the company's comprehensive strength is in the forefront of the plastic flexible packaging industry, based on the domestic while opening up the international market, actively exploring the extension of the industrial chain upstream and downstream, the development of new materials business & international market development brings growth space. It is estimated that the homing net profit for 23-25 years will be 4.2 13/10/9xPE 5.1 / 600 million respectively, corresponding to the average PE of comparable companies, the company will be given 16 times PE for 23 years, with a target price of 11.0 yuan, with a "buy" rating for the first time.
Risk tips: raw material price fluctuation, new project investment, policy risk, competition aggravating risk and so on.