Main points of investment:
The first domestic enterprise with independent intellectual property rights and complete production technology to solve the problem of high heat dissipation of electronic products. Since its establishment, it has always focused on the development, manufacture and sales of high thermal conductivity graphite heat dissipation materials. In 2016, the company achieved operating income of 466 million, an increase of 41% over the same period last year; the net profit of shareholders belonging to the parent company was 82.34 million yuan, up 51% from the same period last year; based on the rapid expansion of the global smartphone market, sales in 2016 were 2.54 million square meters, an increase of 96% over the same period last year. Gross profit margin remains at a high level of 30%.
The national policy supports the development of the new material industry, and the high thermal conductivity graphite film belongs to the new material industry, with high technical barriers and supplier certification barriers. The main results are as follows: 1) the thermal conductivity of high thermal conductivity graphite film can reach dozens of times that of ordinary products, and it will be widely used in the electronic industry in the future. 2) as a technology-intensive new materials industry, the 2017 government work report pointed out that the development of the new materials industry should be accelerated. 3) High-hot graphite film technical barriers, high supplier certification barriers, the company has obtained Samsung, Huawei, VIVO, OPPO and other domestic and international well-known smartphone, tablet computer manufacturers certification.
The demand for consumer electronic products downstream is exuberant, driving the development of the industry for the better. The main results are as follows: 1) the trend of intelligent, ultra-thin and large screen of consumer electronic products is obvious, and heat dissipation is the key problem, which will improve the application proportion of high thermal conductivity graphite film. 2) the popularity of smartphones is rapid, the growth rate of the new market continues to rise, and the global market share of domestic mobile phones is increasing. The shipments of the three major domestic brands accounted for 21% of the global market in 2016. global smartphone shipments are expected to reach 1.56 billion and 1.77 billion in 2017 and 2018. 3) shipments of ultra-thin laptops, tablets and wearables are expected to reach 57 million, 455 million and 96.23 million units in 2017, with strong demand for heat dissipation. It is estimated that the total demand for high thermal conductivity graphite film in 17-18 years is 11.82 million square meters and 25.67 million 27.37 million square meters respectively in neutral and optimistic cases. In the past 17 years, only smart phones have conservatively predicted the demand for high thermal conductivity graphite heat dissipation film up to 6.22 million square meters, which is optimistically estimated to be more than 10 million; the company's production digestion is not a problem. According to the average price of high thermal conductivity graphite film is 215 yuan per square meter, it is estimated that the market scale of high thermal conductivity graphite film in 2017 is about 5.5 billion yuan.
The company plans to issue 52 million shares, raising a net fund of 350 million yuan for 1) relocation and expansion project (290 million): the construction period of the relocation and expansion project is 36 months, and an annual production capacity of 2 million square meters will be formed after reaching production. 2) R & D center project (60 million): the company currently has 48 patented technologies, and the R & D center project will further enhance the company's scientific research and innovation capability.
Considering that the quality of the company's products is comparable to the international level, customers bind Samsung, Huawei, OPPO and VIVO, etc., and the rapid rise of domestic brands, the demand for the company's graphite heat dissipation film is increasing, there is still a certain gap between the listed price-to-earnings ratio and the industry average level (about 48 times), and the future capacity expansion can better meet the downstream needs such as smartphones, ultra-thin notebooks and tablets. It is estimated that the net profits attributable to the owners of the parent company in 17-19 will be 8950,93.37 million yuan respectively, and the fully diluted EPS after the listing of new shares will be 0.43 yuan 0.45 pounds 0.48 yuan respectively. Compared with the situation of comparable A-share companies in the same industry, we give the company 40-45 times in 17 years, and the corresponding reasonable market capitalization and price range are 3.58-40 billion yuan and 17.2-19.4 yuan.
Special note: the IPO pricing predicted in this report is not the price performance on the first day of listing, but a reasonable price range when the existing market environment remains basically unchanged.