The largest exporter of chloro-vinegar resin in China. The company is mainly engaged in the research and development, production and sales of vinyl chloride-vinyl acetate copolymer resin and vinyl chloride copolymer emulsion series products. At present, the company's production capacity has been expanded to 40000 tons / year, and the products are widely used in the fields of ink, paint, paint, color film, record substrate, magnetic card substrate and adhesive. Since 2009, the company has become the largest exporter of chloro-vinegar copolymer resin in China for six consecutive years.
Products into the domestic and foreign ink, paint well-known enterprise supply system. In the first quarter of 2016, the company achieved operating income of 65.29 million yuan, of which foreign sales revenue was 32.43 million yuan, accounting for 49.7% of the total revenue. The company has successfully entered the procurement system of global ink and paint manufacturers such as DIC ink, solar chemical, Imperial Chemical, MICRO ink, Flint ink, Sheng Weike ink, PPG Industrial Group, Akzo Nobel paint and so on, as well as the sales system of DKSH, the world's largest chemical trader.
Downstream demand is growing steadily, and water-based coatings are more environmentally friendly. As one of the main resins of inks, paints, colors and adhesives, special vinyl chloride copolymers are mainly used in food packaging, pharmaceutical packaging, artificial leather, household appliances, construction, furniture, cars, bank cards, etc., most of the application fields are closely related to people's daily life, and are less affected by macroeconomic fluctuations, but with the rapid growth of demand for aluminum foil adhesives, smart cards, plastic floors, flexible packaging and so on. It makes the market demand of special vinyl chloride copolymers grow steadily. With the advantages of environmental protection, energy saving, economy and the support of national industrial policy, waterborne industrial coatings have gradually become one of the main products to replace traditional solvent-based coatings, representing the development direction of the coating industry.
Raise and invest in water-based industrial paint base materials to enhance the company's profitability. The company will issue 27 million shares this time, and the funds raised will be used for the construction of an annual production capacity of 60, 000 tons of water-based industrial paint base materials, new materials research and development center projects and repayment of bank loans. The company's main investment project waterborne industrial paint base material-vinyl chloride copolymer emulsion, is an environmental protection, economic products, in line with the future development direction of the industry. Through the implementation of this project, we can effectively improve the company's existing product structure, enrich the product variety, reduce the company's operating risk, enhance the company's scale advantage, and enhance the company's profitability.
Profit forecast and valuation range. We expect the company's net profit from 2016 to 2018 to be 55.31 million yuan, 67.75 million yuan and 118.51 million yuan respectively, an increase of 21.92%, 22.48% and 74.92% respectively over the same period last year. Based on the total share capital of 108 million shares after issuance, the diluted EPS is 0.51,0.63 and 1.10 yuan respectively. As the company's main business and downstream PVC, paint ink paint correlation is relatively large, so we select the current listing of PVC auxiliaries, paint ink enterprises as comparable companies, comparable companies in 2016, the average PE of 41 times, taking into account the company's investment in water-based coatings is the future development trend of industrial coatings, give the company in 2016 35-40 times PE, reasonable value range of 17.85 to 20.40 yuan, it is recommended to purchase.
Risk hints: the risk of raw material price fluctuations; the risk of intensified competition in the industry; the risk that the return on investment of the fund-raising project is lower than expected.