Industrial paper bag packaging & cheese bar packaging leader, providing "integrated software packaging solution". Shanghai Elu, the predecessor of Elu Co., Ltd., was founded in 2006 and is one of the first companies in China to enter the field of industrial paper bag packaging. Its products include valve pockets, square bottom bags, heat-sealed pockets, sewing belts, etc., after years of technology and production capacity accumulation, the company's product matrix has been continuously enriched. In 2018, it entered into the field of cheese bar packaging with high technical barriers, and signed a strategic cooperation agreement with Miaoke Lando. It is currently the largest supplier of Miao Ke Lando cheese stick packaging. The subsidiary Ruipai Packaging mainly deals with intelligent packaging system, which is an important part of the integrated packaging solution, which complements with other products, comprehensively serves the diversified packaging needs of customers, forms a synergistic effect and enhances customer stickiness.
The industrial paper bag packaging industry is stable and far away, and the growth rate of the cheese packaging market is bright, and the room temperature cheese packaging is expected to enter the larger blue ocean market. From 2014 to 2020, the global industrial paper bag packaging market is expected to grow steadily to US $31.316 billion with a CAGR of 4.19%. The company's composite plastic packaging is mainly based on cheese stick packaging. according to Euromonitor statistics, the retail scale of China's cheese market reached 9.982 billion yuan in 2020, with a compound growth rate of 27.92% from 2019 to 2020, with a year-on-year growth rate of 38.52% from 2013 to 2020. The cheese market showed explosive growth. In addition, Miao Ke Lando has launched room temperature cheese stick products, the potential market space in the terminal market is higher, and room temperature products require higher antibacterial properties of packaging materials. Head packaging enterprises with R & D strength are expected to benefit from the outbreak of new categories in the future.
Precipitate a large number of downstream diversified high-quality customers, intelligent and flexible production capacity leading the industry. The company's customers cover food, building materials, chemical, pharmaceutical and many other industries. In the past three years, the top five customers of the company include Miaoke Lando, Libang Investment, Oriental Yuhong, Shenyang Chemical Industry, Deco Industry and RoyalFrieslandCampina. In addition to Miao Ke Landuo, the concentration of the top five customers before 2020 is 33.12%, and the customer concentration is relatively low. In addition, the production automation level of the company is leading in the industry, the proportion of production personnel is less than the average level of the industry, and the per capita output value is leading in the industry, with flexible, intelligent and automatic production capacity.
Fund-raising projects to promote product optimization & capacity upgrading to match downstream demand and enhance the overall competitiveness of the company.
The company's revenue performance has increased steadily, and the CAGR of income / net profit in 2016-2020 is 23.05% / 46.65% respectively. Under the background that the packaging industry has certain cyclical and asset-heavy attributes, the company has realized the improvement of profit margin by constantly expanding new categories and new areas and strengthening technical R & D barriers, thus improving the level of ROE. The company's fund-raising projects around the main business, continue to promote product optimization and capacity upgrading, supporting intelligent and flexible production capacity, the turnover rate is expected to continue to improve, 22 years of production can be gradually put into production to consolidate long-term growth.
Bind high-quality customers to release volume quickly, industrial paper bags are stable and far away, covering for the first time, giving a "strong push" rating. The company's cheese bar business is bound to core high-quality customers, with a solid share under high-tech barriers and strong bargaining power. in the context of the rapid expansion of the downstream market, the first-mover advantage is obvious. in addition, the company's industrial paper bag business is growing steadily, and large customers continue to sell volume. in the future, with the production capacity expansion to ensure performance growth, the improvement of environmental protection demand is expected to further open up the growth space. We estimate that the company's net profit from 2021 to 2023 will be RMB 164,000,000, EPS 0.41 and PE 0.87, respectively. Considering that the company has a solid leading position in the industry and broad space for the development of its own brand, the company has been given a list price of 21 yuan for the first time, corresponding to 33 times of PE in 2022, which is given a "strong push" rating. In view of the firm position of the company's leading position in the industry and the broad space for the development of its own brand, it has been given a "strong push" rating for the first time.
Risk hint: production capacity is not as expected, large customers are not as expected, and competition in the industry is intensified.