Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) (300993)
Key investment points
Deep ploughing industry for many years, China's functional sunshade industry leader
Since its establishment in 2014, the company has been focusing on the R & D, production and sales of functional sun shading materials. It has 13 series and thousands of products in three categories: shading fabrics, dimmable fabrics and sunshine fabrics. Its products are sold to more than 70 countries and regions on six continents around the world. From 2017 to 2020, the company's revenue increased from 256 million yuan to 385 million yuan, with a CAGR of 14.55%; The net profit attributable to the parent company increased from 51 million yuan to 108 million yuan, and the CAGR was 28.22%; The revenue of 21q1-q3 was 375 million yuan (+ 45.12%), and the net profit attributable to the parent company was 107 million yuan (+ 46.17%). The company adheres to the high-end product line, continuously upgrades the product structure through new product R & D, and steadily enhances its profitability.
Industry: low overseas market share, low penetration rate in China, leading enterprises are expected to reap market dividends
Functional sunshade products will become the main development trend of building sunshade. Functional sunshade products can play an important role in reducing building energy consumption. They have diversified functions, high performance and wide price band. Under the trend of energy conservation, emission reduction and consumption upgrading, they will gradually replace traditional sunshade products.
Under the broad market, overseas China is growing. At present, China's functional sunshade market is still in its infancy, with a penetration rate of only 3.1%, which is far from more than 70% in developed countries. It is expected that the CAGR of China's industry will reach 17% in the next five years. Under the high overseas penetration rate, the product replacement cycle is 3-5 years, and the market demand is high. After years of development, the product quality of China's leading companies can be comparable with that of overseas local products, and the price is only 20% - 40% of the price of overseas products. Under the high cost performance of products, it is expected to seize the overseas market and increase the market share.
Strong R & D and production capacity, build a solid moat, and the company's growth potential is strong
The company has mature production technology and strong R & D ability, which helps the company implement key customer strategy and bind customers in depth. The production process of functional sunshade material industry is complex. After long-term industry experience, the company has a complete industrial chain production capacity of integrated processing from primary raw materials into products through multiple processes, has industry-leading core technology and key production processes, and has established a strong and experienced R & D team, Be able to continuously improve the formulation of raw materials and bring forth the new products. Based on this, the company has formed three categories, 13 series and thousands of products, which can meet the diversified needs of customers, quickly respond to the customized needs of customers at different levels, and provide customers with perfect service solutions, so as to help customers realize one-stop procurement. The company implements the key customer strategy. Competitive price, high-quality product quality, strong R & D ability and long-term accumulated professional customer service experience help the company deeply bind customers.
Profit forecast and valuation
We expect the company to achieve a revenue of RMB 531 / 689 / 920 million in the year of 21 / 22 / 23, with a year-on-year increase of 37.90% / 29.76% / 33.49%, and a net profit attributable to the parent company of RMB 146 / 191 / 257 million, with a year-on-year increase of 35.01% / 30.84% / 34.83%, corresponding to PE of 26x / 20x / 15x. Considering that the company has strong R & D and production capacity and can enjoy the double dividend of market growth at home and abroad, it is given a buy rating for the first time.
Risk statement
Risk of covid-19 pneumonia; Risk of deterioration of foreign trade environment; Raw material price fluctuation risk
