Since its inception, Tongyi Co., Ltd. has always focused on the distribution of upstream chemical materials and electronic materials for brand terminal manufacturers, and continues to consolidate the ability of professional materials consultancy services to link upstream material manufacturers and downstream demands. to form an upstream materials integrated solution business model for terminal brands and contract manufacturers.
Main points:
Core competencies: 1) in the past 20 years, focusing on the chemical and electronic materials distribution in the upper reaches of the 3C industry chain and the ability of high performance-to-price ratio to meet the needs of terminal manufacturers and platform attributes. 2) the resource precipitation advantage of customers and suppliers.
The main growth drivers are as follows: 1) the resonance effect between customers and suppliers is significant, and the distribution revenue will grow at a compound annual growth rate of 30.21% in the next three years. 2) the capacity of plate and bar is released continuously, and it is expected to reach 305 million yuan in 2021, with the corresponding net profit increment of 11.6678 million yuan. 3) the production capacity of modified plastics is expected to be accelerated in 2022, corresponding to the annual revenue and net profit increment of 546 million yuan and 36.6903 million yuan respectively. 4) the investment enabling effect shows that Jusailong is expected to succeed in IPO this year, bringing net profit increment of at least 46.76 million yuan after lifting the ban.
Profit forecast and valuation: since listing, the company's revenue has always maintained a healthy growth trend, and the integration effect of the industrial chain has been released. It is estimated that the revenue from 2020 to 2022 will be 2182.53, 3293.27, 5090.28 million yuan respectively, with a compound growth rate of 41.75% in the next three years. The corresponding return net profit is 31.73pm 70.47 / 178.26 million yuan, respectively, and the compound growth rate in the next three years is 65.35%. The material manufacturing and investment based on the attributes of the traditional distribution platform can show good sustainable growth prospects. Tongyi shares are given a price-to-earnings ratio of 55 times the net profit in 2021, with a corresponding valuation of 3.876 billion yuan and a target price of 25.56 yuan. First coverage, "buy" rating.
Risk hint
The risk of declining demand in the terminal market, the risk that the operating data of the investment project is lower than expected, the time of the listing process of the investment project and the scale of final income are uncertain, systemic risk and liquidity risk and so on.