IXPE electron irradiated crosslinked polyethylene products have leading properties and are widely used in many growth subdivisions. (1) IXPE has strong ductility and is used in many growth subdivision areas: flooring, baby climbing mat, automobile interior decoration, consumer electronics, etc. (2) it is a high-performance foam with outstanding comprehensive performance advantages:
Environmental protection, earthquake resistance, antibacterial, noise reduction, strong stability; (3) IXPE plastic foam belongs to industrial products, and its performance is better than that of EVA and XPE to gradually replace traditional plastic foam.
One of the application areas: PVC flooring sales of vinyl plastic flooring in the global market reached US $21.25 billion in 2015, accounting for 8% of the world's floor coverings. Export: (1) the penetration rate of US / European PVC floor is 21.4%, 28.53% respectively, and there is still infiltration space; (2) the scale of China's export PVC floor is expected to reach US $10.3 billion in 2027, and the industry growth rate of CAGR in 20-27 is expected to reach 9.4%. Domestic sales: assuming that the configuration rate of PVC floor in hardcover room is 5%, according to 200 yuan / square meter, the scale of PVC floor in domestic residential hardcover market may reach 4.9 billion yuan. The second application field: baby climbing pad, the company cooperates with the well-known brand "Keyoubi" of baby products to develop a high rebound series of IXPE products as inner tank materials. The third application field: automobile interior, the global / domestic passenger car production in 2019 is 67.1492 million respectively. If calculated according to the matching value of 4000 yuan, the global / domestic market scale of automobile interior parts is 268.6 billion yuan respectively. According to ModernPlastics Global data, polypropylene (32%), polyurethane (17%) and PVC (16%) account for 66% of the total automotive high-performance plastics with excellent performance or gradually replace the share of traditional materials.
The company is the leader of the industry, bringing new impetus to the core supply chain and capacity expansion of the industry. Income:
In the first three quarters of 20, the revenue was 302 million yuan, the net profit was 95 million yuan, and the gross profit margin / net profit rate of 2020Q3 was 48.37% and 31.26% respectively. Cost: various cost management and control capabilities are leading in the industry. in 2019, the company's sales / management / R & D expense rates are 2.52% 5.95% 3.24% respectively. Customers: the first advantage is obvious, and the head PVC floor enterprise is deeply bound, the company's direct customers in the field of home building decoration, including Taizhou gorgeous, Yihua Rundong, Aili home, Kentiya and other domestic PVC plastic floor manufacturers, in the field of automotive interior decoration into the Volvo supply chain system. Products: China's leading IXPE production enterprises, products to achieve global certification. In 2019, the sales volume of the company's antibacterial / popular series is 5208 / 29.59 million square meters respectively, and the antibacterial enhanced series IXPE is targeted at high-end products with higher added value, with a unit price of 5.66 yuan per square meter in 2019 and 3.63 yuan per square meter.
The company has high quality customer resources and obtains HOME DEPOT recognition together with downstream customers. Earlier, the company entered the Home Depot PVC floor supply chain system and obtained the certification of the third-party testing organization designated by Home Depot. The revenue of the top five customers in the first five years of 2019 was 240 million yuan, accounting for 66.17% of the total revenue. Yihua Rundong, Eli home for the company's main customers, 2B customers have strong stability, the vast majority of the top 20 domestic PVC plastic floor export enterprises are the company's main customers.
Profit forecast and investment rating: in 20-22, the company is expected to achieve a net profit of 1.36 million RMB 215 IXPE. As the leading manufacturer and seller of PE, the company has a competitive advantage, giving it 30 times PE in 21 years, with a target market capitalization of 6.446 billion yuan and maintaining a "buy" rating.
Risk tips: international trade frictions, intensified market competition, raw material price fluctuations, production safety risks, etc.
