The largest manufacturer of special vinyl chloride copolymers in China
The company is a professional manufacturer of chlorine-vinegar copolymer resin with the largest scale, the most complete variety and the best quality in China. at present, it has formed three categories of products, such as high-performance and environment-friendly binary series, carboxyl ternary series and hydroxyl ternary series. It has a production capacity of 40,000 tons per year, ranking first in China, with an output of 24300 tons in 2015. Among them, the output of binary series, carboxyl ternary series and hydroxyl ternary series is 1.68,0.30 and 4600 tons respectively. In 2015, the company realized revenue of 293 million yuan (YoY-4.3%) and net profit of 45 million yuan (YoY 46.9%).
The prospect of downstream development is good, and the space for domestic enterprises is broad.
In recent years, the industries of ink, paint, adhesive, artificial leather, smart card and plastic floor in China have developed rapidly, which has directly led to the development of special vinyl chloride copolymer industry. Although China has become one of the major production bases of special vinyl chloride copolymers in the world, the development of domestic enterprises lags behind, there is still a gap in production capacity compared with the top several manufacturers in the world, and the industry concentration is low. Domestic leading enterprises have a broad space for development in the future.
The company has technical and market advantages.
The company's existing technical team has rich industry experience and R & D strength, currently has 20 product production methods, 11 invention patents, 6 production technologies or environmental treatment technologies, 3 proprietary formulations. The company's products have successfully entered the procurement system of global ink and paint manufacturers such as DIC ink, Solar Chemical, Imperial Chemical, MICRO ink, Flint ink, Shenwei Ink, PPG Industrial Group, Akzo Nobel paint and so on.
Fund-raising projects focus on environmentally friendly products
The company intends to raise a net fund of 228.5 million yuan for projects such as "annual output of 60,000 tons of water-based industrial paint base material-vinyl chloride copolymer emulsion". The product is a water-based paint emulsion, which is environmentally friendly and economical, and is in line with the future development direction of the industry. all of them are expected to increase production capacity by 60,000 tons and increase income by about 500 million yuan.
Reasonable price range 14.6-17.3 yuan
We estimate that the diluted EPS of the company from 2016 to 2018 will be 0.54,0.70,0.90 yuan respectively, and the performance growth rate of the company in the next three years will be about 30%, and its downstream ink, paint and other industries have a certain periodicity; on the other hand, the valuation of comparable companies is relatively high because of small market capitalization, including transformation expectations and other factors. Taking all things into consideration, we think we can give the company 27-32 times PE in 2016, and the corresponding price range is 14.6-17.3 yuan.
Risk tips: raw material price fluctuation risk, downstream industry demand decline risk.