On April 11, Hangzhou Honghua Digital Technology Stock Company Ltd(688789) ( Hangzhou Honghua Digital Technology Stock Company Ltd(688789) ) released its first annual performance report since listing. During the reporting period, the company achieved an operating revenue of 943 million yuan, a year-on-year increase of 31.74%; The net profit attributable to the parent company was 227 million yuan, a year-on-year increase of 32.38%. The basic earnings per share of the company is 3.49 yuan, and it is planned to distribute a cash dividend of 0.90 yuan per share (including tax) to all shareholders.
Hangzhou Honghua Digital Technology Stock Company Ltd(688789) is the first enterprise in China to apply digital jet printing technology to industrial production. In 2000, it successfully developed China’s first digital jet printing machine. Under the business model of “equipment first, consumables follow-up”, the company’s equipment and ink sales complement each other and jointly achieve high-speed growth.
According to the data, in 2021, the sales volume of Hangzhou Honghua Digital Technology Stock Company Ltd(688789) equipment increased by about 35% year-on-year, among which the sales volume of digital direct injection machine with global advanced technology level and scale advantage increased significantly. Ink sales increased by about 89% year-on-year, and the proportion of ink revenue in main business revenue increased from 28% to about 35%.
It is worth mentioning that downstream users usually choose the consumables from the original factory from the perspective of spray printing operation stability. The company provides equipment users with the sales of ink and other consumables and accessories, locking in the huge space in the stock market, and further improving the comprehensive market competitiveness of the company’s digital printing equipment and consumables.
It is understood that after the completion of the project of “intelligent chemical plant with an annual output of 2000 sets of industrial digital printing equipment and consumables”, the company will have the independent production capacity of 5000 tons of digital printing ink per year, further improve the market competitiveness of the company’s ink and vertically extend the industrial chain.
In addition, Hangzhou Honghua Digital Technology Stock Company Ltd(688789) 2021 announced to build a flexible fast reaction demonstration platform through Huzhou joint venture, and jointly invest in the construction of digital textile flexible fast reaction supply chain demonstration project with partners in Changxing County, Huzhou City, the largest distribution center of domestic textile industry in China. This project provides the company’s customers with an integrated solution of digital spray printing, and creates a large-scale small-scale textile single quick reaction demonstration platform through “digital equipment + intelligent chemical plant + quick reaction supply chain” to layout downstream industries.
In terms of horizontal expansion, the company actively pays attention to applications in emerging markets. At present, the company has provided customers with the core printing unit of digital printing equipment for books and periodicals, and will gradually empower customers in terms of machine design and production capacity in 2022. The company said that it will rely on the leading technical capacity and scale advantages in ultra-high speed direct injection to further achieve a higher market share in the book printing industry.
According to Citic Securities Company Limited(600030) research and calculation, the global and Chinese digital printing equipment markets are expected to reach 21 billion and 9 billion yuan respectively in 2025, and the compound growth rates from 2019 to 2025 are 19.9% and 15.2% respectively; In 2025, the global and Chinese digital printing ink markets are expected to reach 10 billion yuan and 2.6 billion yuan respectively. The compound growth rate from 2019 to 2025 is about 10%, and the market space is huge.
Hangzhou Honghua Digital Technology Stock Company Ltd(688789) said that in the future, the company will continue to focus on the core technology of digital inkjet printing, choose opportunities to enter emerging markets in line with the strategic direction and seek new business growth points.
