3New BOPE film project raises profit forecast
Yongxin shares (002014): Proposed annual output of 3.
3New BOPE film project raises profit forecast
Proposed annual output 3.
3 The initial new BOPE film project, the product is environmentally friendly, in line with the company’s and customer’s development strategy: the company issued an announcement plans to invest 100 million U.S. dollars in Huizhou District of Huangshan City to establish a wholly-owned subsidiary-Huangshan Yongxin New 北京桑拿洗浴 Materials Co., Ltd. (tentativeName), which will invest in the construction of a new BOPE film project with an annual output of 33,000 tons, with a total investment of 300 million yuan.
It is understood that the key performance of BOPE film can meet the performance standards of PE film, but the thickness is thin and can reduce the bag breaking rate of composite packaging materials.
The development of this project is in line with the brand’s “Packaging 2025” strategy. It is also conducive to the company’s rich product structure, opening up differentiated markets and consolidating brand advantages. It is a fusion of new environmental protection materials, new technologies and new processes.
According to the announcement, the project construction period is two years, and the annual output value is 5 after completion.
940 thousand yuan, with an annual profit of 49.37 million yuan, accounting for about 21 of the company’s total profit in 2018.
37%.
The third and fourth quarters are the traditional peak season for sales, and gradually achieved steady progress.
The company’s operating income in the first three quarters increased by 11 each year.
85%, net profit attributable to mothers grows by 23.
.
95%.
The single quarter and third quarter revenue and profit growth have been accelerated, and the company’s single quarter and third quarter revenue and growth have increased by 15.
22%, net profit attributable to mothers grows 36.
.
30%.
The third and fourth quarters are the traditional peak sales seasons. It is expected that the company’s fourth quarter results are expected to maintain a higher growth trend and show a steady improvement.
The profitability of the subsidiaries improved, and production capacity was maximized.
The subsidiary Hebei Yongxin achieved net profit of 815 in the first half of this year.
310,000 yuan, an increase of 156 in ten years.
62%, the performance is dazzling, mainly because the number of days of production suspension of the Hebei subsidiary has dropped significantly, and the positive effects of early environmental protection investment have gradually become apparent.
In addition, the subsidiary Huangshan Yongxin increased its capacity utilization rate to 60% this year, crossed the break-even line, and gradually realized the present value of customer reserves in the early stage, achieving a net profit of 670 in the first half of the year.
980,000 yuan.
Upgrade earnings forecast and maintain “Buy” rating.
Increase the company’s net profit attributable to mothers from 2019 to 2021.
63/2.
96/3.
2.4 billion forecast to 2.
87/3.
39/4.
110,000 yuan, corresponding to a PE of 15 in 2019-2021.
31x / 12.
97x / 10.
68x.
The company’s long-term main interests are expanding steadily and maintaining stable relationships with brand customers in the downstream FMCG industry.
With the long-term understanding of downstream customers on the environmental protection and safety of packaging, the relationship between the company and customers is getting closer.
Benefiting from the expansion of downstream customers’ market share and the active development of new customers, the company’s performance continued to grow.
The competitive advantage obtained from the preliminary environmental budget and the research and development of new materials has gradually contributed to the performance end, and the dividend ratio is high. The company is judged by PE at 20-20 times in 2019, corresponding to a target price of 10.
26-11.
40 yuan, maintain “Buy” rating.
risk warning.
Raw material price fluctuations, new project construction and production progress is not as expected, etc.