Hangzhou Youngsun Intelligent Equipment Co.Ltd(603901) (603901)
event
The company plans to acquire 70% equity of Langfang Baiguan and Zhongjia intelligence held by 25 shareholders such as Du Zhenqing and Zhang Wenge in cash.
Key investment points
It is proposed to acquire 70% equity of Langfang Baiguan and Zhongjia intelligence to boost performance growth and increase market share
Langfang Baiguan Packaging Machinery Co., Ltd. is a comprehensive liquid food packaging solution supplier specializing in design, manufacturing, sales and service, with an operating revenue of 160 million yuan and a net profit of 7.71 million yuan in 2020; From January to September 2021, the operating revenue was 220 million yuan and the net profit was 12.16 million yuan. Langfang Baiguan’s service field covers many packaging industries such as beverage, dairy, condiment, wine and oil. Its high-speed and multi-functional aseptic cold filling production line is widely used in China’s beverage packaging industry. Its main customers include Yuanqi forest, Huiyuan Juice, Jianlibao, Bright Dairy & Food Co.Ltd(600597) , nongnongshan spring, unity, foreigners, etc.
Langfang Zhongjia Intelligent Technology Co., Ltd. is jointly invested by the shareholders of Langfang Baiguan Packaging Machinery Co., Ltd. up to now, it mainly holds some land and plants for the production and operation of Langfang Baiguan, and has no other substantive business.
The completion of this equity acquisition will expand the company’s packaging equipment category in drinking water, carbonated drinks, fruit juice, tea and other beverages, especially the product series of medium and high-end beverage filling equipment such as PET blowing, filling and spinning high-speed multifunctional aseptic cold filling equipment, which will help to accelerate the layout of the company’s packaging equipment in the beverage industry and improve the market share of the company’s products, Have a positive impact on the company’s future performance.
The packaging equipment industry has opened up incremental market space, and the company’s accelerated production expansion is expected to lead the same industry
Since 2021, China’s packaging equipment industry has developed well, and is gradually expanding and sinking from the traditional downstream market dominated by large-scale production to new market demand such as Shenzhen Agricultural Products Group Co.Ltd(000061) processing and packaging. Driven by China’s promotion of domestic consumption, the downstream consumer goods industry represented by food has experienced strong growth, and its dependence on high-speed, intelligent and flexible packaging equipment has further increased, indirectly promoting the rapid development of the company’s business.
The company’s continuous technology optimization is applied to aseptic filling system in dairy and beverage market. It has improved the stability, advanced and intelligent degree of products, and has formed a relatively complete packaging equipment product system. With the gradual development of China’s Chinese Baijiu technical transformation project and the continuous improvement of low temperature milk permeability, the company has cut into the downstream key customers by improving its technological superiority and product quality, and the market share of China has further improved. The company’s downstream main customers include Yili, Budweiser beer, Gree and other consumer goods industry leaders to help the company improve its brand effect. The company actively expanded its production capacity and promoted the construction of the “construction project of 40000 sets of packaging equipment per year”, so as to alleviate the company’s current production capacity bottleneck as soon as possible; and through the intelligent transformation of the original production equipment, improve the production efficiency and shorten the delivery cycle.
Profit forecast and valuation
It is estimated that the operating revenue from 2021 to 2023 will be RMB 2.56/3.23/3.92 billion, with a year-on-year increase of 27% / 26% / 21%; The net profit attributable to the parent company was 270 / 360 / 470 million yuan, with a year-on-year increase of 58% / 33% / 32%, corresponding to 28 / 21 / 16 times of PE. Maintain the “buy” rating.
Risk statement
The prosperity of downstream industries is lower than expected, and the growth rate of fixed investment slows down; Industry competition intensifies and price war breaks out; The prices of raw materials such as steel, plastic particles and aluminum fluctuated sharply
