Zhejiang Xidamen New Material Co.Ltd(605155) (605155)
Small and beautiful series of high-quality targets have long been equipped with the dual logic of "China penetration + overseas market share", waiting for the formation of Chinese leaders with global layout, integrated industrial chain and multi business coordination.
Key investment points
China's leading functional sunshade materials are exported to more than 70 countries around the world
Zhejiang Xidamen New Material Co.Ltd(605155) since its establishment in 1997, it has always focused on the R & D and production of functional sunshade materials. Its products include nearly 1000 varieties of sunshine fabrics, coated fabrics and dimmable fabrics, which are widely used in airport stations, office buildings, shopping centers and other public buildings. From 2016 to 2019, the CAGR of the company's income / net profit attributable to the parent company was 9.7% / 21.3%; In 2020, affected by the epidemic, the revenue / net profit decreased by 13% / 12% year-on-year to RMB 354 / 78 million; Return to high growth in 2021.
Double click "China's penetration rate + overseas market share", and the imagination space is broad
China's penetration rate: functional sunshade materials have significant energy-saving and consumption reduction effects, and have special functions such as flame retardant, antibacterial and antifouling. They have a strong substitution trend for traditional cloth curtains. However, at present, China's penetration rate is only 3% (mainly used for commercial buildings, and the home decoration market is in the blank stage), which is far from 80% in Europe and America. It is expected that China's CAGR will reach 17% in the next five years.
Overseas share: after more than 70 years of development, the European and American building sunshade industry has been relatively mature, and a number of famous industry giants have emerged; There are many participants in the Chinese market, but Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) and Zhejiang Xidamen New Material Co.Ltd(605155) are few enterprises with international competitiveness, and their overseas market share is still at a very low level (for example, Zhejiang Xidamen New Material Co.Ltd(605155) only accounts for 0.6 ‰ of the U.S. market). With the improvement of domestic technology and brand strength, China is expected to go out of the world's leading enterprises with the advantages of high cost performance and high production efficiency.
High Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) in the traditional textile industry and high multi-dimensional barriers of the company
Functional sunshade materials not only have extremely strict requirements for flatness in weaving, but also the key is that the formulation of its polymer raw materials requires profound industrial experience and continuous R & D investment.
The design and development capacity of the company is leading the industry: ① the equipment are first-class equipment imported from Germany, France and South Korea, and the product technology has reached the global medium and high-end market level. ② It has 14 independent R & D technologies, and is promoting 7 R & D projects according to market demand to continue to build differentiated competitiveness.
Product systematization and customized production: ① it is one of the suppliers with the most complete product categories and specifications in the industry, and can provide customers with one-stop procurement services; ② It can meet customers' personalized needs for product improvement, R & D and customization, and obtain more high value-added orders.
Integrated industrial chain: a production chain integrating monofilament coating, weaving, coating, heat treatment and finished product assembly has been formed, which can effectively reduce labor cost and material consumption, improve yield and shorten delivery cycle.
Global sales network: expand the service radius with multi-point promotion, with customers in more than 70 countries and regions around the world. At the same time, adopt differentiated pricing mode and pay attention to maintaining their bargaining power.
The core main business has entered the capacity climbing period, and the secondary entrepreneurship has entered the C-end market
Capacity expansion of sunshade fabric: the company will add 16.5 million square meters on the basis of 30 million square meters, with an increase of more than 50%. It is expected that 22q1 will be put into operation by about 50% and reach production by the end of 22.
Cultivate the C-end market of finished products: develop China's C-end market with its own brand " Zhejiang Xidamen New Material Co.Ltd(605155) ", guide China's penetration and seize the minds of consumers; Amazon and other e-commerce are used to develop overseas C-end market to make up for the lack of service radius. The laying of channels outside China can not only ensure the smooth digestion of the new production capacity of 2 million square meters of sunshade products, but also feed the front-end product R & D as the tentacle of the end market.
Open up new fields of soft decoration software: we are committed to building an ecosystem of "bedroom experts". The core mattress products adopt Adidas boost popcorn technology, with significant differences. The goal is to cultivate another source of performance for the company.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company in 21-23 years will be RMB 100 / 1.3 / 170 million respectively, with a corresponding growth rate of 28% / 33% / 31%. The current market value corresponds to PE of 20 / 15 / 12x. Zhejiang Xidamen New Material Co.Ltd(605155) and comparable company Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) are the leading enterprises of functional sunshade materials in China. Both companies will benefit from the improvement of "China penetration rate + overseas market share" for a long time, and their growth will enter an accelerated period in the future. We believe that there is room for improvement in the current valuation of Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) and Zhejiang Xidamen New Material Co.Ltd(605155) , of which Zhejiang Xidamen New Material Co.Ltd(605155) is relatively more cost-effective. It is covered for the first time and given a "buy" rating.
Risk statement
Price fluctuation risk of raw materials; Risk of deterioration of foreign trade environment; The development of software business was less than expected
