\u3000\u3000 Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) (300993)
Catch up against the trend under the epidemic situation, and the raised investment project will be put into operation soon. The company is the leader of functional sunshade in China. The actual controller is Mr. Sun Chengzhi. He is now the vice president of China State Construction Engineering Corporation Limited(601668) sunshade Association and has won the lifelong achievement award for architectural sunshade. The core team holds equity through the employee stock ownership platform. From 2017 to 2020, the compound growth rate of the company’s revenue was 15% and the compound growth rate of its profit was 28%. Under the epidemic situation, the company went against the trend and surpassed it, and its performance ranked first among comparable companies. In June 2021, the company will have a production capacity of 32 million square meters. With the continuous production of raised investment projects from 2022 to 2023, the production capacity will increase by 19.6 million square meters.
Overseas demand is strong, and China’s penetration rate is expected to increase. The performance of functional sunshade products is better than fabric curtains. The market scale of European sunshade industry is 50 billion euros, and the penetration rate of functional sunshade products is more than 70%. The products enter building materials stores and have C-end attributes. The market scale of China’s sunshade industry is 631.2 billion yuan, with a penetration rate of only 3%. The penetration rate of sunshade industry in China is expected to reach 663-6014} in 2025, and the composite growth rate of sunshade industry in 2019 is expected to reach 663-6018%.
Excellent performance under stress test. In 2021, the company raised the price twice to deal with the price rise of raw materials, and the gross profit margin in the first three quarters decreased by only 2.45 percentage points compared with the whole year of 2020. Due to the high proportion of high-end products and the advantages of large customers, the net interest rate in the first three quarters of 2021 was 28.51%, an increase of 0.45 percentage points over the whole year of 2020. Under the pressure of increased costs, soaring sea freight and RMB appreciation, the company’s revenue and net profit in the first three quarters of 2021 increased by 45% and 46% year-on-year, with excellent performance.
Investment suggestion and Valuation: it is estimated that the company’s EPS 1.5 from 2021 to 2023 09 / 1.49/2.01 yuan, corresponding to pe24 / 18 / 13 times. The company’s business is mainly export-oriented, and its performance and profitability are better than comparable companies. There should be a valuation premium, and the company will be given a valuation of 20 times in 2022. The relative valuation method of P / E ratio is adopted, according to the EPS 1.1 in 2022 49 yuan, giving a target price of 29.82 yuan in the next 6-12 months. “Buy” rating is given for the first time.
Risk factors: rising cost of raw materials; Appreciation of RMB; Tight shipping capacity; The epidemic situation has intensified; The ban on restricted shares was lifted.
