产品不断升级，下游客户持续拓展。依托生态功能性环保聚氨酯合成革和复合材料技术，公司持续在高端应用领域与下游达成合作。在汽车内饰领域，已成为丰田、比亚迪、小鹏、江淮、长城、奇瑞等国内外汽车品牌供应商，获得部分定点项目并量产。公司目前服务的汽车品牌逐渐增多，销售呈现“低基数、较高增速”的态势，未来提升空间广阔。在消费电子领域，公司2016 年与华为建立合作关系，2020 年与苹果签订开发与供应框架性协议，目前与三星、谷歌、ViVO、OPPO、小米、Realme、Beats 等国内外品牌客户合作态势良好，电子中高端客户的开拓将助力公司加快完成产品市场双升级，打开新的成长空间。Key points of investment:
The company is a leading domestic PU synthetic leather manufacturer. The company specializes in ecologically functional polyurethane synthetic leather and polyurethane composites, leading the world in scale. It has 40 dry and wet production lines, an annual production capacity of 88.5 million meters of ecological synthetic leather and 70,000 tons of PU resin. In the future, the company plans to develop a production capacity of about 100 million meters per year for ecologically functional polyurethane synthetic leather and composites during the 14th Five-Year Plan period.
Adhering to continuous investment in R&D, water-based solvent-free technology has a first-mover advantage. The company's R&D investment in the past three years is around 130 million yuan, and the share of R&D investment in revenue has risen to more than 6%. The company began to lay out R&D and production of water-based solvent-free polyurethane synthetic leather in 2011. After 2-3 years of verification and mass trial production, the company achieved stable mass production in 2018. In recent years, as the company actively promoted customer and product transformation and upgrading, cooperation with domestic and foreign brand customers increased, the production of water-based solvent-free products gradually increased around 2020. Currently, the company's water-based and solvent-free technology is mature, and can be quickly transformed into a competitive advantage. It is one of the important growth points for the company's future development. Currently, the company's water-based solventless solventless technology is mature. Product revenue accounts for about 20%.
Products are constantly being upgraded, and downstream customers continue to expand. Relying on ecologically functional and environmentally friendly polyurethane synthetic leather and composite material technology, the company continues to reach cooperation with downstream in high-end applications. In the field of automotive interiors, it has become a supplier for domestic and foreign car brands such as Toyota, BYD, Xiaopeng, JAC, Great Wall, Chery, etc., and has obtained some targeted projects and mass production. The number of car brands currently served by the company is gradually increasing, and sales are showing a “low base, high growth rate” trend, and there is plenty of room for future improvement. In the consumer electronics sector, the company established a cooperative relationship with Huawei in 2016 and signed a development and supply framework agreement with Apple in 2020. Currently, cooperation with domestic and foreign brand customers such as Samsung, Google, ViVO, OPPO, Xiaomi, Realme, and Beats is good. The development of high-end electronics customers will help the company accelerate the completion of product market upgrades and open up new growth space.
With the Vietnam factory layout, overseas business can be expected to grow. In line with industry trends, the company established a joint venture holding subsidiary in Vietnam, leveraging Vietnam's location advantages to develop overseas business and expand its international market share. In 2017, it invested in the establishment of Amway Vietnam. Construction of the Vietnam plant began in March 2019, and construction of 4 production lines is planned. Two of these production lines will be put into operation at the end of 2022. The remaining 2 production lines are expected to be completed in the second half of 2024. At that time, an operating scale with an annual output of 12 million meters will be formed, and the release of production capacity will boost performance growth.
Profit forecast and investment advice: We expect the company's revenue for 2024-2026 to be 22.44 billion yuan, 24.55 billion yuan, and 2,735 million yuan, respectively, and net profit to mother of 2.03, 2.64, and 326 million yuan respectively, corresponding to EPS of 0.93, 1.22, and 1.50 yuan, respectively. We will give the 2024 PE valuation 18 times, corresponding to the target price of 16.81 yuan, covered for the first time, and give a “buy” rating.
Risk warning: risk of developing emerging businesses falling short of expectations, risk of large fluctuations in raw material prices, risk of construction of new production capacity falling short of expectations, risk of trade friction, risk of increased market competition, risk of exchange rate fluctuations
