Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) (688323) is the leader of high-performance PI films in China. The company’s main products include thermal control PI film, electronic PI film, electrical PI film, etc., which are widely used in flexible circuit board, consumer electronics, high-speed rail transit, wind power generation, 5g communication, flexible display, aerospace and other fields. Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) has become one of the global suppliers of high-performance PI film products. The company’s product sales account for about 6% in the world, breaking the technical blockade and market monopoly of DuPont and other foreign manufacturers on China’s high-performance PI film industry. The total revenue of the company in 2020 was 350 million yuan, and the CAGR reached 22.49% from 2017 to 2020.
PI film is polyimide film, which is a new type of high temperature resistant polymer film. It has excellent electrical insulation performance, high and low temperature performance, mechanical performance, chemical stability, low dielectric loss and flame retardant performance, and these properties will not change significantly in a wide temperature range (- 269-400). The performance of PI film is at the top of the pyramid of polymer materials. It is one of the best super engineering polymer materials in the world. It is known as “golden film”. Together with carbon fiber and aramid fiber, PI film is known as one of the three bottleneck key high molecular materials restricting the development of high-tech industry in China. With the steady increase of demand for folding screen, 5g, smart phone, high-speed railway, wind power and aerospace, it is expected that the annual average growth rate of global PI market demand will be higher than 10% from 2021 to 2025, and the market scale will exceed 20 billion yuan in 2025. Due to the excellent performance of PI membrane, it has a wide range of applications. Once the cost is reduced, the space will expand rapidly.
With the rapid growth of downstream demand, Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) is expected to give priority to import substitution with the complete PI film R & D and industrialization system. PI film has a wide range of applications. With the rapid development of downstream industries, the market capacity of PI film continues to expand. PI film has high technical barriers, capital barriers and certification barriers. PI film manufacturers worldwide are mainly distributed in the United States, Japan and South Korea, including DuPont, Zhongyuan Chemical, skpi and a few other companies, with a production capacity of more than 2000 tons. The above-mentioned enterprises have implemented a strict technical blockade on China’s high-performance PI film industry, which has a large space for import substitution. It is estimated that in 2022, the total scale of China’s PI film market will reach more than 7 billion yuan, including 950 million yuan of thermal conductivity grade PI film, 2.63 billion yuan of electronic grade PI film, 970 million yuan of electrical grade PI film and 2.69 billion yuan of special grade PI film. The company’s existing PI film production capacity is about 900 tons, accounting for about 5.5% of the global market. The 1600 T / a capacity of Jiaxing project will be gradually put into operation in the second half of 2022, and the capacity will increase significantly at that time.
The company is accelerating the production and application of CPI film (transparent polyimide film). In the CPI film market, CPI film for flexible display has the characteristics of high light transmittance and bending resistance. It is mainly used for OLED screen cover sector, touch sensor panel, etc; With the technological breakthrough and capacity increase of flexible OLED screen, the market scale of CPI film is expected to reach US $820 million in 2021. The technical difficulty of CPI film is very high. As of June 2021, only a few Japanese and Korean enterprises such as Kolon of South Korea and Sumitomo chemical of Japan have the supply capacity, and no enterprise in China has the mass production capacity of CPI film for flexible display. The company independently grasps the core technology of CPI film preparation. After the construction of CPI special production line, it is expected to fill the Chinese gap in this field. The 50 t / a CPI film project will be commissioned and produced in the first quarter of 2022. The products are mainly used for folding screen mobile phones. At present, folding screen mobile phones are expected to usher in an industrial explosion period. In the future, with the project put into operation, the company’s performance is expected to usher in rapid growth.
Haitong Securities Company Limited(600837) said that the company is the leader of high-performance PI film in China. With the continuous production of raised investment projects, the company is expected to expand the production capacity of advantageous products and improve product competitiveness and market share. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 67 million yuan, 113 million yuan and 206 million yuan, corresponding to EPS of 0.37 yuan, 0.63 yuan and 1.15 yuan respectively. Referring to the valuation of comparable companies in the same industry, the reasonable valuation is 55 times to 60 times PE in 2022, and the corresponding reasonable value range is 34.65 yuan / share to 37.80 yuan / share. The rating of “better than the big market” is given for the first time.
Sealand Securities Co.Ltd(000750) said that the company is a pioneer in China’s high-performance PI film industry. The industry competition pattern is clear and there is large room for import substitution. The company has multiple R & D reserve projects, covering a wide range of products. The expansion of PI film production is expected to further improve the market share of the company and grow rapidly into a leader in the industry. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 68 million yuan, 98 million yuan and 217 million yuan respectively, with year-on-year growth rates of 18%, 42% and 122% respectively, maintaining the “buy” rating.
