Main points of investment:
The domestic leader in the field of high thermal conductivity graphite heat sink, many stable suppliers of medium-and high-end well-known brands. The company focuses on the field of high thermal conductivity graphite heat dissipation materials, mainly used in mobile phone terminals. With the development of lightweight, diversified functions and complex internal structure of the mobile phone, the heat sink of the internal components of the mobile phone gradually highlights its importance. Graphite has become the new main force of mobile phone heat sink because of its many excellent properties, such as light and thin, high temperature resistance, high heat conduction efficiency, good heat soaking effect and so on. With its years of technical precipitation, the company has become the leader in domestic high thermal conductivity graphite heat dissipation materials, and has successfully entered the supply chain of many global middle and high-end well-known brand mobile phone manufacturers: Samsung, Huawei, OPPO, Vivo and so on.
Raise 290 million yuan to expand production capacity + 60 million yuan to enhance R & D capacity, bringing new room for growth. In order to seize more market share under the increasingly fierce market competition, the company plans to raise investment projects to increase production capacity and open up room for growth. The funds raised will be used for relocation and expansion projects and R & D center projects. Among them, the relocation project plans to invest 290 million yuan to expand 2 million square meters of new production capacity, with a construction period of 36 months.
The R & D center project plans to spend 60 million yuan on purchasing equipment, enriching existing product lines, optimizing existing product processes, and hopes to open up new business growth points by extending from the upstream and downstream of the industry.
With mature technology, it is expected to seize the opportunity of the rise of domestic machines and gradually catch up with and surpass the global leaders by making use of localization and price advantages. The production capacity and market share of the company are in the lead in the world, and the technical precipitation requirements of manufacturers in the field of high thermal conductivity graphite film are high. The company uses the first-mover advantage to master a number of patented technologies of high thermal conductivity graphite film with polyimide as raw materials, and retains the technical backbone through equity incentives. At present, the thinnest graphite film the company can produce is 10 μ m, which is equivalent to the technical level of large international manufacturers, and is expected to seize the opportunity of the rapid rise of domestic machines. Make use of price advantage and local advantage to seize more market share. At the same time, companies can use patent barriers, customer certification barriers, economies of scale to effectively prevent the threat of new entrants.
The downstream terminal demand broke out in an all-round way, and the prospect of heat dissipation materials is very clear. 1) the smartphone market has entered a period of steady growth, mobile phone manufacturers began to upgrade mobile phones to seize market share, comprehensive screen, wireless charging, large screen, OLED and so on came into being, promoting mobile phone heat dissipation materials to move towards high added value. 2) with the rapid rise of domestic brands, the company as a stable customer is expected to further seize market share. 3) the heat dissipation of graphite accelerates the infiltration of low-end smart phones, gradually entering a series of models with thousands of yuan, and the market space is further opened. 4) Multi-point blossom downstream promotes the expansion of the industry. The development of ultra-thin notebooks, detachable tablets, smart wearable devices and new energy vehicles further enhance the demand for the quality and quantity of heat sink.
Profit forecast: we predict that the net profit of the company from 2017 to 2019 is 1.08,1.19 and 127 million yuan respectively, corresponding to EPS of 0.52,0.57,0.61 yuan per share. With reference to the valuation of the comparable company, the PE of the comparable company varies greatly (2018 dynamic PE is at 70,140x), which is not rated for the first time, considering that the company's share price is volatile due to the market sentiment of the graphene plate (the actual business is not related to graphene for the time being).
Risk factors: there are alternative materials in the graphite heat dissipation industry, and the price of graphite heat sink fluctuates greatly.