\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 18 Shandong Nanshan Fashion Sci-Tech Co.Ltd(300918) )
Shandong Nanshan Fashion Sci-Tech Co.Ltd(300918) : mainly engaged in worsted and professional wear, cutting into the field of new materials and promoting the transformation of technical benefits
Founded in 2007, the company adheres to the development concept of "intelligent manufacturing as the basis, technological innovation as the driving force and brand operation as the core", covers the integrated worsted fabric and clothing business system, improves the wool textile clothing industry chain and realizes the closed-loop industrial information. By the end of 2020, the company has a worsted fabric production capacity of 16 million meters / year and a formal professional wear production capacity of 1.35 million sets / year, The production capacity of shirts is 450000 pieces / year.
The company cuts into the field of new material UHMWPE, develops special varieties and high value-added products, and promotes the long-term development strategy of "technical benefit type". The company expects that the 600 ton project will be put into operation in the first half of 2022.
The improvement of the epidemic situation + accelerated replacement of imported fabrics + stable demand in China + continued release of new product orders, boosting the high growth of performance. The company's revenue of 21q1-3 is 1.019 billion yuan. Thanks to the increase of product gross profit margin and the reduction of financial expenses, the net profit attributable to the parent company in 2021q1-3 increases by 25.2% to 96 million yuan. The company expects the net profit attributable to the parent company to be 132160 million yuan in 2021, an increase of 50.84% - 82.84% at the same time.
Worsted business: after the epidemic, the wool textile industry chain has accelerated its transfer to China. The company has dug deep into the market segments and continued to launch differentiated and high value-added products
The wool textile industry chain is transferred to China. Relying on the characteristics of high-quality and comfortable wool textile industry, the domestic wool textile industry will gradually expand and upgrade with the continuous growth of its high-quality and comfortable wool textile industry. Affected by the serious epidemic situation in Italy and other countries and the blocked industrial chain, the advantages of China's complete wool textile industrial chain are prominent, and the wool textile industry has shifted from export-oriented to China's industrial chain.
Differentiated brand operation strategy, increase R & D efforts and increase the proportion of high value-added products. The worsted fabric business of the company is positioned in the medium and high-end markets at home and abroad, adheres to the differentiated brand development strategy, and successively operates worsted fabric brands such as Nanshan and Ferrat. In recent years, the company has launched optim all wool waterproof fabric to achieve a functional breakthrough, has a full set of production patents for the product, and is the only enterprise in the world that can produce the product. Continue to scale up the intelligent upgrading project of production line, optimize resource allocation, realize brand promotion and intelligent manufacturing, so as to upgrade product structure and increase the proportion of high value-added products.
Future: the company will 1) improve high value-added products, upgrade the functionality of conventional products, make full use of its own equipment and technical advantages, strengthen the research and development of fist products and implement the research and development of new functional fiber products; 2) Build brand advantages around trend leading and innovation driving; 3) Face the high-end brand market, comply with personalized needs and provide high-quality and efficient services.
Professional wear business: consumption upgrading catalyzes the growth of advanced customization, independent brands and ODM / OEM work together, rich high-quality customer resources and stable cooperation
Under the background of consumption upgrading, advanced customization has become the trend of professional wear industry. At present, the concentration of China's professional wear industry is low, with most small and medium-sized enterprises and mainly low-end products. With the continuous fermentation of demand, the scale of China's professional wear market has grown steadily, and advanced customization has become a new growth point under the upgrading of consumption.
Highlight the advantages of integrated R & D, create high-quality and professional products and improve brand influence. The company operates the leading brand of professional wear in China, "tierma", the advanced customized brand "Zhishang", and three retail brands, "Paul BERTANI", "Bosa margini" and "mans Brighton"; At the same time, relying on the integrated R & D advantage of the complete industrial chain of "fabric + clothing", carry out ODM / OEM business to provide high-quality product R & D and production services for first-line brand customers at home and abroad; Join hands with the self weight Hall of Japanese enterprises to launch the "Yushan" brand, create high-quality professional tooling and protection products, and dig deep into the customers of central state-owned enterprises to improve the brand influence.
Future: strong stock system and zero shear service provide the source power for the company to grasp the upward opportunities of garment customization industry; Focusing on science and technology, the company provides more and better services to customers in the high-end market through scientific and technological innovation; The company will also continue to expand new markets and achieve all-round and multi field development.
UHMWPE business: the recognition of Chinese manufacturers in the international market has gradually increased, and the company's investment layout has opened the ceiling of performance growth
With the growth of downstream demand, the ultra-high polymer industry may flourish, and the domestic substitution will be gradually recognized. UHMWPE fiber has the advantages of high wear resistance and low friction coefficient. In recent years, the demand in the field of security and civil textiles has increased rapidly and has broad development prospects. The gradual broadening of downstream application scenarios will further promote the development of the industry. At present, China's ultra-high polymer products are still dominated by medium and low-end products. With the continuous breakthrough of technical barriers to the production and application of high-performance fibers, the product quality and international market recognition are gradually improving. In the future, China is expected to gradually establish a leading position in global supply.
The forward-looking layout will consolidate the foundation for rapid entry into the ultra-high polymer industry. The company has long paid attention to scientific and technological progress and technological development. With the digestion and absorption of introduced technologies, the company can quickly enter the field of high-tech fibers. In 2021, the company invested 128 million yuan to build a 600 ton UHMWPE project, which is expected to be commissioned and produced in April 2022.
UHMWPE project enables the company to new growth points, enrich the company's industrial chain, make up for the gap of China's high-tech fiber and realize diversified development. At the same time, its functionality can meet the urgent needs of military, aerospace, marine development and other industrial applications, and enable the company to maintain vitality and competitiveness in the international Chinese market for a long time. On the one hand, the ultra-high polymer project is expected to open the ceiling of the company's revenue and profit. On the other hand, the high profit margin is expected to improve the overall profit margin level of the company and improve the overall profitability of the company.
First coverage, buy rating
The worsted fabric company will continue to optimize the worsted fabric structure in winter and continue to make breakthroughs in worsted fabric technology, so as to maintain the leading performance of worsted fabrics in the four seasons; In the medium and long term, the company is committed to increasing the proportion of high-quality suits and shirts, giving full play to its industrial chain and technical advantages, and developing advanced customized services along the trend of consumption upgrading; New entry into the field of ultra-high polymer, creating a new engine for the company's growth, enriching the industrial chain, and is expected to open the ceiling of the company's growth.
We estimate that the operating revenue of the company from 2021 to 2023 will be 1.487 billion yuan, 1.757 billion yuan and 2.083 billion yuan respectively, the net profit attributable to the parent company will be 146 million yuan, 163 million yuan and 206 million yuan respectively, the corresponding EPS will be 0.41, 0.45 and 0.57 yuan / share respectively, and the corresponding P / E will be 27, 24 and 19 times respectively. The average PE valuation of comparable companies in 2022 is 31 times, giving the company a reasonable PE of 31 times in 2022, with a corresponding share price of 14.15 yuan.
Risk warning: business risks caused by force majeure such as "covid-19 epidemic"; Exchange rate fluctuation risk; Human resource risk; Raw material procurement risk, etc.
