Guangdong Leary New Material Technology Co.Ltd(688683) (688683)
Core view
Functional coating film integration leader, benefiting from the simultaneous improvement of supply and demand. Focusing on the integration strategy of “adhesive film material + application”, the company has deeply cultivated the functional coating adhesive film industry chain for nearly 20 years, maintained a leading position in China in terms of technical system, business model, product structure and product competitiveness, and fully competed with international manufacturers in subdivided application fields such as FFC and LED flexible circuit board The reserve of new products with high technical barriers such as thermoforming process has growth potential. In the future, on the one hand, the company will benefit from the vigorous ecology of the downstream application market and the green process trend under the goal of “double carbon”; On the other hand, it will benefit from the supply chain reconstruction opportunity under domestic substitution and grow from the explorer of the application of new functional coating film materials in China to a leader;
Downstream technological innovation drives the rapid growth of demand. With the continuous innovation in consumer electronics, semiconductors, new energy, automotive electronics and other fields in the 5g era, driving the upgrading of functional coating film and product technology and the continuous improvement of demand, there is a large market potential. 1) The demand for electromagnetic shielding and glass casing of 5g mobile phones has increased, driving the demand for magnetic shielding adhesive film and glass process protective film of the company. 2) The trend of high-definition and large screen display drives the volume and price of FFC to rise. 3) LED linear lighting has broad prospects. The company’s LED flexible circuit board products have the advantages of cost, environmental protection and high efficiency. The adoption of innovative technology has gradually been recognized by the market. 4) At that time, the semiconductor was replaced by domestic products, and the company added the protective film in the wafer manufacturing process, and large-scale mass production is imminent;
Embrace the era of new energy vehicles and energy storage. Driven by the pressure of energy conservation and emission reduction and the demand for performance improvement of new energy vehicles, the demand for vehicle lightweight is prominent. FFC flexible flat cable has the characteristics of small volume, thin thickness and good bending resistance. It can replace the traditional automobile harness. With the two-dimensional growth of consumption and product technology, the market space of vehicle FFC will continue to be released. In addition, the company recently announced the acquisition of Foshan Dawei and cut into the field of carbon coated aluminum foil, the main material of lithium battery collector. It has established cooperation with major manufacturers of energy storage and power batteries in China. While fully benefiting from the performance increment brought by the general trend of new energy vehicles and energy storage, it is expected to have synergy with the company in terms of technology, business and customers.
Profit forecast and investment suggestions
We predict that the company’s earnings per share in 21-23 years will be 0.51, 0.80 and 1.20 yuan respectively. According to the 22-year average PE valuation level of comparable companies, the corresponding target price is 30.34 yuan, and the buy rating will be given for the first time.
Risk statement
Raw material price fluctuation risk, new product market expansion is less than expected, and downstream demand is less than expected.
