Event: (1) on March 30, Zhi Chi Science and Technology announced that it planned to raise 700 million yuan from no more than 35 specific investors. After deducting the issuing expenses, 300 million yuan is used for the construction project of optical film production base, 200 million yuan is used for the construction project of solar packaging film production base, and 200 million yuan is used to supplement working capital.
(2) it is proposed to invest 27 million yuan to set up a holding subsidiary Tianyuan New material (53% shareholding) layout optical glue.
Comments: the increased funds will be used for the construction of optical film production base, the expansion of photovoltaic film products, etc.; in addition, the company plans to invest in the layout of optical glue. Downstream LCD industry demand is strong, the company raises money to increase optical film, expand production and increase efficiency; investment layout optical glue, industrial coordination, help the company to maintain competitive advantage. Raise money to expand new photovoltaic film products, cooperate with photovoltaic backplane film, the company drove into the new photovoltaic track, functional thin film platform enterprises are emerging. New products bring new space, it is optimistic that the company will enter a period of rapid development.
1. Raise funds to build optical film production base, expand photovoltaic film products, and optimize capital structure.
Chi Chi Science and Technology announcement intends to raise an additional 700 million yuan from no more than 35 specific investors. (1) 300 million yuan is used for the construction project of optical film production base, and the project has a construction period of 3 years. The production of high-end optical film products such as small-size brightening film, composite film and quantum dot film will effectively enhance the company's production capacity and profitability. (2) 200 million yuan is used for the construction project of solar packaging film production base, which is undertaken by Anhui Jizhi, a newly established wholly-owned subsidiary of the company, with a construction period of 3 years, which is helpful to form the industrialization ability of solar packaging film and meet the construction needs of photovoltaic industry. (3) in view of the company's continuous high R & D investment, 200 million yuan is used to alleviate the pressure of working capital and optimize the company's capital structure.
two。 Downstream demand is strong, the company raises money to add optical film + investment layout optical glue to maintain competitive advantage.
The downstream LCD industry is booming, the market demand for LCD modules is increasing year by year, and the company's optical film business has benefited significantly. The fundraising project focuses on high-end optical film products, and after successful completion, (1) optimize the product structure to meet downstream needs: effectively enhance the production capacity of optical films such as small-size brightening film, composite film, quantum dot film, etc., to solve the capacity bottleneck caused by the rapid growth downstream. (2) help the company to expand its production capacity and give full play to the large-scale economic benefits of optical films. (3) the company plans to invest abroad and lay out optical glue, which is an indispensable fitting material for middle and high-end touch display modules, which forms a synergistic effect with the company's existing optical film business, and is expected to provide a new profit growth point.
3. Expand the new products of packaging film, cooperate with photovoltaic backplane film, and the prototype of functional thin film platform enterprise is emerging.
Since the company cut into the photovoltaic track, the revenue of the company's photovoltaic division has grown rapidly, and the sales of 2020H1 solar backplane film have increased by 78% compared with the same period last year, and the contribution to the main revenue has continued to increase. This increase, the company plans to build a solar packaging film production base, (1) under the background of "carbon neutralization", downstream photovoltaic to maintain a high boom, this project will help the company to grasp the growing market demand of the photovoltaic industry. (2) the photovoltaic backplane film of the company's existing products is developing rapidly, expanding the plastic film products and the backplane film to form a synergistic effect, at the same time, it can make full use of the company's resources, strengthen the advantages of the industrial chain, and drive into the new photovoltaic track.
4. Investment suggestion: as a leading enterprise of domestic optical film, the company continues to add optical film through fund-raising projects to develop new optical glue products; photovoltaic film new products + backplane film cut into the new photovoltaic track, new products bring new space, it is optimistic that functional thin film platform enterprises have entered a period of rapid development. We raise the company's profit forecast and estimate that the net profit for 20-22 years will be $4.2 billion (original value $1.32 billion) and EPS will be $0.87 billion ($1.59 billion) for 20-22 years respectively, and the net profit for 20-22 years is estimated to be 1.83 billion yuan ($1.59 billion) for 20-22 years, and the net profit for 20-22 years is estimated to be 1.83 billion yuan (1.59 billion yuan) for 20-22. We give the company 22-year PE 28X, raise the target price to 76.72 yuan (original value 59.08 yuan), and maintain the buy rating.
Risk tips: fund-raising projects are not up to expectations; downstream panel demand is not as expected; photovoltaic industry development is not as expected; fixed growth is facing the risk of examination and approval.
