Shenzhen Tongyi Industry Co.Ltd(300538) (300538)
Event: the industrial investment fund Gongqingcheng AVIC digital No. 1 jointly initiated by the company and AVIC Nanshan has completed industrial and commercial registration.
Core competitiveness: customer resources + project experience + first mover advantage + flexible production to build a leader in the plasticization industry. 1) Channel advantages and customer resources: upstream raw materials and downstream brands are world-famous enterprises; 2) Project experience and industry understanding: it can provide customized solutions for different segments; 3) First mover to enter the market segment: dig deep into the pain points of downstream customers and choose to intervene in the early stage of project development; 4) Inventory management and flexible production: from order acquisition to product listing, improve the overall efficiency of the supply chain; The core competitive advantage of the company is obvious, and it is expected to build a leading enterprise in the plasticization industry.
Plastic plate and bar of raised investment project: the Pearl on the crown of engineering plastics, striving to build a leader in subdivided fields in 3-5 years. 1) Market space: due to the advantages of wear resistance, vibration resistance, corrosion resistance, recyclability and high strength, plastic plate and bar products are widely used in automobile, household appliances, consumer electronics, construction units and other fields. In 2019, the total sales revenue of plastic plate and bar in China market was 330 billion yuan. Compared with developed countries in Europe and America, the market competition pattern in China is relatively scattered, In 2019, the revenue of the first six leading enterprises accounted for only 0.35% of the market share. 2) Development trend: at the policy level, key policies supporting the development of material industry continue to be implemented; Consumption upgrading, automobile lightweight, new energy vehicles and household appliances use plastic instead of steel to accelerate the promotion of plate and bar products; Import substitution, technological progress, transformation and upgrading create opportunities for the development of Chinese enterprises. Therefore, multiple favorable factors catalyze and enhance the prosperity of the industry. 3) Company objective: after the completion of the raised investment project, the monthly production capacity will exceed 1500 tons, which is 300% of the production capacity before the raised investment project. By introducing automatic and intelligent plate and bar production equipment for extrusion of special engineering plastics and building high-quality and intelligent production lines and workshops, the company strives to become a leading enterprise in the field of plate and bar in China within 3-5 years.
Modified engineering plastics for raised investment projects: product formula is the core barrier, and the company has project experience and R & D advantages. Plastic material modification takes general, engineering or special engineering plastics as the main raw materials, various organic and inorganic fillers and functional additives as auxiliary materials, and improves the properties of the original plastics through technical means such as filling, toughening, reinforcement, blending and alloying, so as to meet the needs of different application fields. Due to its customized characteristics, the formulas of various high-performance and professional modified plastics are mastered by leading enterprises in the subdivided field. As a material supply chain solution service provider, the company has accumulated a deep understanding of the industry and a variety of core material formulas in the process of deeply cultivating the industry for 20 years, which can ensure product quality, reduce comprehensive costs, provide whole process technical services and strengthen inventory management. After the construction of the engineering plastics modification project and R & D center invested by the company, it will realize the transformation from material application development to material basic formula development, and independently own the formulation system of spray free, 5g materials, lightweight materials, wear-resistant materials and biomaterials; At the same time, build a scientific injection molding + injection molding industry 4.0 application development center to reduce the cost of the industrial chain.
Profit forecast and investment rating: we expect the net profit attributable to the parent company from 2021 to 2023 to be 0.64, 1.24 and 2.10 yuan respectively, and PE to be 75, 39 and 23 times respectively. We are optimistic about the market in China's plate and bar field. As a leader in the industry, the company maintains the "buy" rating.
Risk warning: the market demand is less than the expected risk; Risk of insufficient supply of raw materials and price rise; The easing of Sino US trade friction is lower than expected risk
