Jinghua Laser: a leading manufacturer of anti-counterfeiting materials in China
Jinghua Laser is a national high-tech enterprise specializing in the manufacture, sales and technology development of laser holographic molding products. The company has 18 invention patents and 11 utility model patents, and has formed a series of products centered on laser holographic anti-counterfeiting film and anti-counterfeiting paper. The products are mainly used in anti-counterfeiting packaging in the fields of tobacco, alcohol, cosmetics, pharmaceuticals, food, etc. The company has now become an official group member and vice chairman unit of the China Anti-Counterfeiting Industry Association, and one of the top ten enterprises in China's anti-counterfeiting industry. From 2014 to 2016, the market shares of the company's products in the tobacco packaging field were 4.61%, 4.17%, and 4.36%, respectively.
Revenue has fluctuated slightly in recent years, and gross margin levels are basically stable
The company's revenue mainly comes from laser holographic anti-counterfeiting paper and laser holographic anti-counterfeiting film. From 2014 to 2016, the company's revenue increased by 19.83%, -9.43%, and 2.80%, respectively, over the same period last year. Among them, the decline in operating income in 2015 was mainly due to the economic downturn, cigarette tax increases, and tobacco control factors that adversely affected the cigarette market, which in turn led to a decline in sales of the company's anti-counterfeiting technology products. From 2014 to the first half of 2017, the gross margins of the company's main business were 32.02%, 35.11%, 34.74%, and 34.17%, respectively, and were basically stable. The gross profit margin in 2016 decreased by 0.37 percentage points compared to 2015, mainly due to a 7.40% increase in the sales cost of the laser holographic security film business unit compared to the previous year.
Demand in the upstream packaging market continues to grow, and R&D capabilities will become the key to industry competition
Holographic optical anti-counterfeiting products are widely used in consumer packaging fields such as cigarettes, alcohol, cosmetics, pharmaceuticals, food, etc. Driven by growing market demand from emerging and transition economies, the size of the global packaging market continues to grow steadily. The World Packaging Organization (WPO) estimates a compound annual growth rate of 4.10% from 2014 to 2017. According to data from the China Packaging Federation, the total output value of the domestic packaging industry reached 1.63 trillion yuan in 2015 and 1.70 trillion yuan in 2016. China maintains its position as the second largest producer of packaging products in the world. In the field of packaging materials, the equipment and original versions required for production can be purchased from the market. Market competition is fierce. Enterprises with a high level of technology in the industry can obtain orders with their advanced technical level and stable product quality, thus establishing long-term good cooperative relationships with customers.
Fundraising project priorities: expand the company's core production capacity and enhance core R&D strength
The company plans to publicly issue 22.78 million shares to the public, and is expected to raise 365.4679 million yuan. The capital is planned to be invested in: the construction project of accurately positioned laser holographic anti-counterfeiting packaging materials with an annual output of 50,000 tons, and the construction of a laser holographic anti-counterfeiting packaging materials research and development center project. Referring to Wind's consistent forecast, the corresponding PE of comparable listed companies in 2017 was in the 19-20 times range; in 2017, the PE of listed companies in the commercial services and supplies industry was in the 16-77 times range. The median value was 31 times, and the average value was 41 times.
Risk warning: Changes in market sentiment have led to a downward shift in the valuation center.