IXPE is a leading R & D manufacturer. The company ploughs the electron irradiation crosslinked polyethylene (IXPE) plate, focusing on the research and development, production and sales of IXPE foam, the main products are electron irradiation crosslinked polyethylene (IXPE), including antibacterial enhancement series, popular series and special series. In 2019, the company has a production capacity of 74.14 million square meters per year, which is in a leading position in the industry. The company's production capacity utilization rate is 110% in 2019, which is in short supply. The downstream of the company's products are mainly used in PVC flooring and other fields, in the stage of sustained and rapid growth.
The IXPE space is huge. IXPE has the characteristics of non-toxic and environmental protection, and can replace traditional foam in many fields.
The downstream market of IXPE is mainly in the fields of PVC flooring, car interior decoration, baby activity protection pad, electronics and medicine, etc. Among them, PVC floor with green environmental protection, recycling and other advantages, rapid volume in the United States and other markets, 2011-2018 compound growth rate of 15.39%, we estimate that the global PVC floor potential IXPE market space of about 10.4 billion yuan in 2020. The automobile interior decoration industry benefits from people's growing awareness of environmental protection, IPXE is expected to gradually increase volume, we estimate that the potential market space of domestic IXPE is about 6.7 billion RMB.
Master core technology, customer resources are of high quality. The company now has 83 patented technologies (including 2 overseas patents and 32 invention patents), ranking in the forefront of the industry. The company's products have passed the formaldehyde, VOC and other harmful substances tests of Intertek, one of the largest consumer goods testing, inspection and certification companies in the world. In the field of home building decoration, the company's direct customers include domestic large PVC plastic floor manufacturers such as Taizhou gorgeous, Yihua Rundong, Eli Home, Kentiya, etc., and enter the supply chain of HomeDepot; the field of automotive interior decoration will enter the Volvo supply chain system; the field of crawling pad will be comparable supply.
Fundraising opens up room for growth. The company raised 612 million yuan for "annual output of 100 million square meters IXPE expansion project", "annual production increase of 16 million square meters IXPE automation technical renovation project", "R & D center construction project"
And "Intelligent Storage Center Construction Project", after the project is put into production, on the one hand, it will effectively expand the company's production capacity, on the other hand, it will further improve the company's R & D strength. The company increases the capital of Vietnam Runyang by 10.2 million US dollars or equivalent RMB to promote Vietnam Runyang to expand its production capacity and further enhance the company's market competitiveness and profitability.
Profit forecast: the company's operating income from 2020 to 2022 is expected to be 422 million yuan, 593 million yuan and 866 million yuan respectively, the attributable net profit is 141 million yuan, 200 million yuan and 295 million yuan respectively, and the PE is 31, 22 and 15 times respectively.
Risk hints: "raw material price fluctuation risk", "risk of high customer concentration", "production safety risk", "market size calculation is based on certain assumptions, there is actual lower-than-expected risk", "fund-raising project promotion and capacity investment is less than expected risk", "the public data used in the research report may lag behind or not update in a timely manner"