Events:
The company released its semi-annual report for the first half of 2017 on the evening of August 28: during the reporting period, the company realized operating income of 166 million yuan, an increase of 15.33% over the same period last year; operating profit of 22.5387 million yuan, an increase of 13.52% over the same period last year; net profit belonging to shareholders of listed companies was 18.69 million yuan, an increase of 13.07% over the same period last year.
Comments:
1. The growth rate of the company's performance exceeds the industry average. The company is one of the leading domestic enterprises of PCB photosensitive ink, accounting for 25% of the domestic photosensitive line ink market and 10% of the domestic solder ink market. According to the growth rate of the domestic PCB board, the demand for PCB ink is expected to grow at a rate of about 8-9%. The company's electrostatic spraying ink has been supplied to Chongda Circuits and Shennan Company in bulk, the high-end market has been opened, and the performance growth rate has exceeded the industry average.
two。 The construction of the new capacity is orderly. The company has an annual production capacity of about 8000 tons of photosensitive ink, and the new production capacity of 10,000 tons will be put into production next year. At the same time, the company based on photosensitive inks to LCD photoresist market, the company currently has an annual production capacity of 50 tons of photoresist products, mainly LED, TN/STN liquid crystal display panel photoresist products, new production capacity of 1000 tons of photoresist chemicals, including 700tons of photoresist, 300tons of supporting chemicals, will be aimed at high-end TFT photoresist, currently in the pilot stage, is expected to be promoted to the market within the year.
3. The company has obvious technical advantages, through years of research and development, mastered the core technology of photosensitive ink, including resin synthesis technology, photoresist photosensitizer synthesis technology, formulation design and process control technology.
Profit forecast and rating:
As the company continues to achieve import substitution in the high-end electrostatic spraying ink market, as well as the development in the field of photoresist, we expect the company's EPS to be 0.40,0.50,0.66 yuan in 2017-2019, with a target price of 25.2 yuan.
Risk Tips:
The market verification process of new photoresist products is not as expected; the risk of over-concentration in the field of product application; the risk of bad debts in accounts receivable; the stock price of secondary new shares fluctuates greatly.
