\u3000\u3 Ping An Bank Co.Ltd(000001) 212 Sinostone(Guangdong) Co.Ltd(001212) )
Investment summary
Artificial quartz stone is a leading enterprise. As the first artificial stone enterprise listed on China's A-share main board, the company has obvious advantages in the field of artificial quartz stone production and manufacturing. In the first three quarters of 2021, the company achieved an operating revenue of 513 million yuan, a year-on-year increase of 42.41%, and a net profit attributable to the parent company of 104 million yuan, a year-on-year increase of 12.16%.
The industry has great growth potential, and the downstream demand for fine decoration of real estate and customized home furnishings has expanded, supporting the gradual opening of the market demand for artificial quartz stone. At present, the artificial quartz stone industry is still in the growth stage. In recent years, the markets of refined decoration of commercial houses, customized homes and customized kitchen cabinets have expanded. The artificial quartz stone has ushered in the golden stage of industry development. The market share of the industry will continue to expand and the brand concentration will further improve. Under the new growth mode, large customized kitchen cabinet manufacturers will pay more attention to the quality, color design, additional functions and other factors of artificial quartz table. For the artificial quartz industry, enterprises with core technology, high product quality and strong R & D and design ability will meet and face more market opportunities.
Increase R & D investment, actively expand production capacity and consolidate industry leading advantages. The company actively expands production capacity, breaks through the existing production capacity bottleneck, enhances R & D strength, and creates a solid software and hardware foundation. In addition, the company is committed to the transformation from "product manufacturing" to "product + service" mode, has accumulated a number of high-quality customer groups, and has become a supplier of major well-known customized home furnishings, Kitchenware and foreign quartz brand enterprises in China.
Profit forecast and valuation
As a manufacturer of artificial quartz stone, the company complies with the increase of downstream hardcover penetration, the market demand for house customization and public dress is gradually opened, and the market space of quartz stone is gradually expanded. In addition, the company attaches importance to improving product quality, optimizing channel sales and coping with the challenges brought by the change of business environment. We estimate that the operating revenue of the company from 2021 to 2023 will be 722 million yuan, 906 million yuan and 1.15 billion yuan, with a year-on-year increase of 30.16%, 25.44% and 26.89% respectively; The net profit attributable to the parent company was 149 million yuan, 179 million yuan and 221 million yuan respectively, with a year-on-year increase of 9.2%, 20.2% and 23.5% respectively. The EPS was 1.64/1.98/2.44 yuan / share respectively. Corresponding to the stock price on March 11, the valuation was 21 / 17 / 14 times respectively. It was covered for the first time and given a "buy" rating.
Risk tips
Price fluctuation risk of main raw materials; Intensified market competition; International trade friction risk.
