Shanghai Nar Industrial Co.Ltd(002825) (002825)
The company is a leading enterprise integrating R & D, production and sales in China’s digital inkjet material industry, with the first market share in China. The main business is the R & D, production and sales of two wings (digital inkjet ink and automobile protective film) of one (digital inkjet materials), and actively layout the field of hydrogen energy to create a new material platform.
The market share of the main industry of digital inkjet materials is expected to continue to increase. The company is the leader of digital inkjet materials in China, with a market share of more than 30%. The company’s digital spray painting materials mainly include body stickers and single transparent films, which are widely used in the fields of signs, streaming media advertising and building decoration. With the implementation of raised investment projects, the company will continue to seize the incremental and stock market in the industry based on the advantages of scale, further consolidate the leading position in the market, and the market share is expected to continue to increase. At the same time, it continues to extend upstream raw materials (PVC film, silicon paper and adhesive) to gradually realize self-production and reduce the impact of raw material price fluctuation.
Digital ink has been replaced by imports, and the products continue to be in large quantities. Compared with traditional screen printing, digital printing has the advantages of small batch, personalized characteristics and environmental protection. At present, China’s penetration rate is less than 5%. With the development of e-commerce, China’s consumption demand for digital printing ink is expected to continue to explode. In the past 18 years, the company entered the digital ink market through the acquisition of Shenzhen ink library. The product structure is mainly digital ink for textiles, achieved breakthroughs in key products and technologies, broke the monopoly of foreign manufacturers, realized import substitution, and continued to produce large quantities of products; At the same time, actively layout UV ink for advertising to achieve synergy with the main business.
The car protective film is stuck in the blue ocean track, and the market space is broad. Automobile protective film (invisible car clothes) can protect the original car paint, self repair the damage and improve the beauty of the whole car. At present, there are nearly 300 million cars in China, and the annual demand for film coating exceeds 500000 cars. The blue ocean market of car protective film is beginning to appear, and the market space is broad. The production process of car protective film and digital spray painting materials belongs to soft substrate coating technology, and the company has been deeply engaged in this field for nearly 20 years , the relevant technologies are mature, and the price advantage is obvious compared with imported brands. With the continuous promotion of products and the capacity expansion of raised investment, the sales volume of automobile protective film is expected to continue to double.
Layout hydrogen electric materials and embrace the new energy industry chain. Hydrogen energy vehicles have the advantages of good low-temperature performance, long range and fast hydrogenation. At the same time, hydrogen energy, as a zero carbon fuel, will also play a key role in promoting energy transformation. In recent years, the company continued to track the progress of hydrogen electric materials, and officially entered the field this year. It cooperated with Dr. Hu Liqing, a senior expert of China’s hydrogen fuel cell, to establish a joint venture to develop core materials such as membrane electrodes, with a planned production capacity of 2 million pieces in phase I.
The first coverage is given a “buy” rating. This year, the company’s profits were periodically affected by the rise of upstream PVC prices. With the gradual return of upstream raw material prices to rationality and the continuous extension of the company to the upstream, the company actively stuck at the blue ocean track, determined the growth attribute under the strategic layout of one body and two wings, developed hydrogen and electric materials, embraced the new energy industry chain and created a new material platform. The company’s future performance growth has been determined, and the inflection point has come. We expect the company to realize a net profit attributable to the parent company of 98 / 203 / 275 million and an eps0.1 million in 21-23 years 57 / 1.18/1.60, corresponding to pe36 1 / 17.5 / 12.9x, with “buy” rating for the first time.
Risk warning: raw material price fluctuates and product demand does not meet expectations
