Domestic polypropylene filament bibcock. The company's main products are polypropylene filament. The output of polypropylene filament from 2017 to 2020 is 23000 tons, 24600 tons, 27000 tons and 27400 tons respectively. According to the statistics of China Chemical Fiber Industry Association, the company ranks first in the output and market share of domestic polypropylene filament industry from 2017 to 2019, and ranks first in 2020.
The output of polypropylene fiber has increased steadily at home and abroad. According to the statistics of the Japan Chemical Fiber Association, the global output of polyolefin fiber (including polypropylene and ethylene, mainly polypropylene) increased from 2.258 million tons in 2010 to 2.757 million tons in 2015, with an average annual compound growth rate of 4.07%, achieving steady growth. According to the data of the National Bureau of Statistics and the China Chemical Fiber Industry Association, China's polypropylene output in 2017, 2018 and 2019 was 294100 tons, 347800 tons and 385000 tons respectively, maintaining a steady growth.
According to the data of China Chemical Fiber Industry Association and Chemical Fiber Blue Book, from 2014 to 2019, the export volume of all polypropylene products increased rapidly, from 30800 tons to 58000 tons year by year.
The domestic demand for polypropylene fiber is exuberant. In the field of industrial fabrics, the global demand for nonwovens continued to be strong in 2019. For the whole year, the output of nonwovens produced by enterprises above the scale of China's industrial textile industry reached 5.03 million tons, an increase of 9.9 percent over the same period last year. In the civil field, there is a large market demand and growth space for luggage ribbons and sportswear.
The application of the product is broadened and the market prospect is good. The country vigorously promotes the development of green industry and has stricter requirements for environmental protection, and the green manufacturing of polypropylene fiber will usher in new opportunities for development. With the increase of disposable income of residents, the improvement of living standards and the increasing attention to environmental protection, the application market of polypropylene fiber is constantly expanding. Smaller polypropylene enterprises will face the situation of being eliminated, large-scale polypropylene production enterprises will get further growth opportunities, and market concentration will be further improved.
The net profit of homing continues to grow. In 2020, under the influence of the epidemic abroad, export orders decreased and business income declined. Polypropylene fiber income was 370 million, 2.4% lower than the same period last year. In 2020, the price of raw material polypropylene declined, the company's operating cost decreased, with a gross profit margin of 30.8%, an increase of 2.6 pct over the same period last year, and a net profit of 80.071 million yuan, an increase of 16.4% over the same period last year. The company has always attached importance to R & D and innovation. In 2020, we will continue to increase investment in research and development, continue to develop new products, processes and applications, and enhance the competitiveness of products. In 2020, R & D expenditure was 14.363 million yuan, accounting for 3.89% of operating income.
Profit forecast: we expect the company's EPS in 2021-2023 to be 1.16,1.23,1.39 yuan respectively. According to 2021 BPS 9.06yuan and 3.54.0times PB, corresponding to the reasonable value range of 31.7136.24yuan, we give the investment rating of "better than the big market".
Risk tips: the price of raw materials has risen sharply, the progress of projects under construction is not as expected, and the growth of downstream demand is not as expected.
