Incident: On May 28, the company announced that it plans to set up an office in Thailand, with an investment amount of about 2 million yuan. The Thai office is the company's first regular overseas office. It is expected that business personnel will be permanent. The purpose is to further deepen strategic partnerships with overseas customers, speed up response to overseas markets and customer needs, further develop business in the Southeast Asian market, and strengthen localized services. The company's overseas competitiveness is expected to be further strengthened.
Global competitiveness is leading, and the logic of going overseas is smooth. The company has accumulated a deep accumulation of major customers, accompanied multinational customers to the global market, and strengthened the expansion of new overseas customers. 23H1/23H2 overseas business revenue was 207 million yuan/173 million yuan (+20.3%/-4.4% year over year). The 23H2 overseas market fluctuated slightly and the base declined. We expect the 24H1 overseas core market to continue to recover and develop new markets at an accelerated pace, and export sales revenue is expected to maintain rapid growth.
Color printing sales grew steadily, and film production contributed to an increase. 1) Color printing: Crude oil prices were high in the same period last year, the average price base of the product was high, and the average price is expected to continue to decline; with the increase in the share of old customers & the introduction of new products, new customers & the continuous expansion of the new circuit, the company's color printing sales will continue to grow steadily, and Q2 color printing revenue is expected to remain stable; 2) Film: Benefiting from the commissioning of BOPE/BOPP film, and business improvement season by quarter. We expect Q2 film revenue to continue to grow rapidly and profitability to recover steadily.
The proportion of functional films is gradually increasing, and materials such as single material, degradable, and high barrier have excellent innovation capabilities, driving increased profitability and deepening customer binding.
Profit forecast: The company's net profit for 2024-2026 is estimated to be RMB 470 million, RMB 530 million, and RMB 60 billion respectively, corresponding to PE of 13.1X, 11.6X, and 10.2X, maintaining a “buy” rating.
Risk warning: Raw material prices fluctuate, downstream demand recovery falls short of expectations, overseas markets fluctuate.