Joy Zhixing (301198)
Joy Zhixing: a supplier of customized recyclable plastic packaging solutions in the field of household appliances and daily necessities based on automobiles. Joy wisdom provides customized recyclable plastic packaging and leasing operation services to customers. Since its establishment, the company has been focusing on the field of recyclable plastic packaging. At present, the products provided include combined complete sets of packaging products, thick wall blister packaging units, thin-wall blister packaging units, turnover box packaging units and other different series. As a customized recyclable plastic packaging enterprise that entered the automotive industry earlier, the company has the first mover advantage. Through deep involvement in the logistics and packaging links of downstream customers, the company realizes the binding with downstream customers and establishes its leading position in the market segment. The company is in good financial condition, leading in the comprehensive gross profit margin of the packaging industry, with a gross profit margin of 36.69% in 2021. From 2017 to 2021, the company's revenue increased from 252 million yuan to 363 million yuan. Among the company's main business income, product sales accounted for a relatively high proportion, and the scale of rental and operation service income showed an upward trend year by year, which was RMB 33 million, RMB 50 million, RMB 66 million and RMB 83 million respectively from 2018 to 2021. The company's main revenue source began to change from traditional vehicle enterprises to new energy vehicle enterprises. The revenue from Tesla increased from 4.65 million yuan in 2019 to 55.46 million yuan in the first half of 2021, accounting for 34.42%.
Policy promotion and economy promote the development of recyclable plastic packaging industry. Recyclable packaging is a logistics packaging container made of plastic, metal, wood or other durable materials that can be recycled and reused. Since 2016, the policy has been increasing to promote the development of recyclable packaging industry. According to the prediction of reportlinker, the scale of China's recyclable packaging market is expected to reach US $24.2 billion in 2027, of which recyclable plastic packaging accounts for 46.9% due to the excellent characteristics of materials. From the perspective of the whole life cycle, recyclable packaging has good economy. Herman Miller and Ghirardelli chocolate have saved costs by using recyclable packaging. Therefore, we believe that the economic advantage is conducive to the promotion of plastic recyclable packaging. The automobile industry began to use recyclable packaging earlier, and the parts are mainly recyclable plastic packaging. According to the research of the automobile industry association, about one-third of the automobile parts can use plastic recyclable packaging. According to the calculation of Shanghai packaging and the prospectus of joy Zhixing, the market space of recyclable packaging in the automobile parts industry is expected to reach 14 billion yuan in 2022. Driven by the policy, express, home appliances and other industries have carried out large-scale pilot applications of recyclable packaging. Zhongtong recently proposed a "one-to-one" circular packaging application system solution; Jd.com has explored the green recycling logistics packaging mode, and the recyclable green flow box made of resin plastic has been put into normal use in more than 30 cities across the country; Midea has used a large number of standard plastic pallets for transportation with sectors, and the consumption has exceeded 60000 by 2020; After the pilot large-scale promotion, recyclable packaging is expected to replace corrugated boxes, with a potential market space of more than 100 billion yuan.
Based on the automobile industry, expand household appliances and daily necessities, and the integrated heavy asset operation of leasing + transportation and packaging is expected to build barriers. In 2019, the company cooperated with Tesla to enter the recycling packaging market of new energy vehicles. At present, the self-developed new energy battery cell packaging polyphenylene oxide (PPO) modified material technology has completed basic research and development, and the battery cell packaging technology is leading in the industry. The standardization and safety of the company's packaging products have been endorsed by Tesla, which is expected to continue to expand customers in the new energy industry. The integrated mode of leasing and transportation package promoted by the company can alleviate the financial pressure of customers and reduce the difficulty of promotion through heavy asset operation, or help to form customer stickiness and improve the entry threshold of the industry at the same time. Driven by the demand, the company timely expanded its production. In March 2022, the company signed the investment cooperation agreement on the renewable packaging production base of new energy vehicles and household electrical appliance parts with Chaohu Municipal People's government, and plans to establish a renewable packaging production base of new energy vehicles and household electrical appliance parts. The project is expected to become a profit growth point of the company in the future.
As the leader of China's recyclable plastic packaging, the profit forecast and investment rating company expands the field of household appliances and daily necessities based on the automotive industry and provides customized overall solutions for recyclable plastic packaging. With the expansion of the company's business areas and the promotion of the leasing model, the future revenue is expected to increase. We expect the company's overall revenue to be 478 / 626 / 811 million yuan from 2022 to 2024, with a year-on-year growth rate of 32% / 31% / 29% and the net profit attributable to the parent company to be 97 / 127 / 166 million yuan, with a year-on-year growth rate of 59% / 32% / 30% respectively. According to the closing price on April 27, the dynamic PE is 22 / 17 / 13 respectively. For the first time, give a "buy" rating.
Risk Tips 1) the application and promotion of recyclable packaging is not as expected; 2) The proportion of plastic recycling packaging in recyclable packaging decreased; 3) Industry competition intensifies; 4) The company's production expansion progress is less than expected; 5) The downstream application expansion is not as expected.
