Chapter 283: Look for opportunities in the hottest sectors
November 27, 2023 is week 1, Yuansheng found a good stock in a hot sector through the weekend review, please see its information------------------------------------------
High-barrier industrial flexible packaging advantage enterprises, first-class customers to build the company's moat: Hujiang Materials was established in 1995 and has entered the field of industrial special packaging since 2002. The company's main products include five series of products: aluminum-plastic composite heavy bags, aluminum-plastic composite inner bags, PE heavy bags, PE inner bags, and functional films, which are mainly used in special packaging for chemical, food, pharmaceutical, high-purity metals, precision instruments and other products. In 2020/2021H1, the company achieved operating income of 231 million yuan/166 million yuan, a year-on-year increase of 11.27%/65.85% respectively; In 2020/2021H1, the net profit attributable to the parent company was 32.67 million yuan/24.63 million yuan, a year-on-year increase of 13.58%/64.24%, respectively, and the revenue and net profit both achieved rapid growth. The company's 2020/2021H1 comprehensive gross profit margin was 36.15%/34.28% respectively, and the gross profit margin remained at about 35% over the years.
The downstream of the industry is widely used, and the polarized large and medium-sized enterprises in the industry have high competition: the downstream application range of the plastic packaging industry is broad, mainly including chemical, food, pharmaceutical and other fields, and it is the second highest category in packaging materials. According to the BIS forecast, China's plastic packaging demand will increase from US$47.7 billion in 2019 to US$58.2 billion in 2025, with an average annual compound growth rate of 3.38%. According to the data of the China Packaging Federation, as of 2017, there are 1,604 plastic packaging enterprises above designated size in China. The leading position of the subdivision track builds the relative advantage of gross profit margin: the company is mainly engaged in the research, production and marketing of high-barrier industrial flexible packaging, and there are few comparable companies in the industry, so the scope of comparable companies is expanded to the packaging industry, and Zijiang Enterprise, Yongxin Co., Ltd., Wang Zixin New Materials and Huanshen Co., Ltd. are selected as comparable companies. From the perspective of scale, the company's revenue and profit scale are relatively small compared with those listed on the main board of the same industry. From the perspective of gross profit margin, the gross profit margin of major enterprises in the industry is in the range of 15%-25%, and the main products are general consumer product packaging; Since the company's downstream customers are mainly in the chemical industry, the company's packaging performance requirements are high, and the gross profit margin has been around 35% in recent years, which has certain advantages compared with comparable companies in the same industry.
The company is deeply engaged in the high-barrier industrial flexible packaging industry, and is an advantageous enterprise in the domestic high-barrier industrial flexible packaging industry, and has been the No. 1 supplier in the relevant packaging procurement of major customers such as BASF in China for many years, with strong customer stickiness, and is expected to benefit from the stable growth of the packaging industry. From the perspective of valuation, the average valuation of comparable companies is 24XPE, 2.8XPB, of which the highest valuation is Wang Zixin (an integrated supplier of new environmentally friendly packaging materials), with a PE-TTM of 42 times.......................................................................................................................................................................
It's the river stock.
Write in the evening.
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