Zaisheng Technology (603601) In-depth Tracking Report: Leading Micro Glass Fiber Cotton Products Enjoy Industry Dividends
The company is a leading company in micro-glass fiber cotton products, committed to clean air and efficient energy-saving solutions. The entire industry chain has significant advantages, and the downstream market space has grown rapidly.
We predict that the company’s EPS for 2019-2022 will be 0.
61 yuan per share, CAGR for 2020-2022 is 34%.
According to PEG estimates, 34 times PE in 2020 is given, corresponding to a target price of 12 yuan, and maintain a “buy” rating.
Glass fiber cotton faucet, dedicated to clean air and energy-efficient solutions.
Zaisheng Technology focuses on the application development research of ultra-fine fibers, membrane materials, adsorption materials and sound-absorbing insulation materials, etc., with materials as the cornerstone, deeply digging the advantages of materials, functionalizing, compounding and productizing materials
The company continues to explore the market through endogenous epitaxy, using glass fiber wool production capacity6.
6 mm, filter paper production capacity of 9,000 tons, VIP core material (including fiber cotton) production capacity 2.
5 Every day, AGM chip capacity is 6000 tons, 8 air filter production lines and 6 FUU production lines. It is expected that capital expenditure will be invested in the future to continue to increase market share.
Opening up and downstream to form the advantages of the entire industry chain, the business model is unique.
The company makes full use of product performance advantages and brand advantages to build a “design + production + sales + service” business module to create an industrial chain layout of “core material production” + “smart equipment manufacturing” + “system solution services”.
The upstream three raw material construction cost advantages; the midstream filter paper controls the addition and replaces the market; the downstream equipment opens up new fields of application.
The company’s business model is leading, and the leader is expected to further consolidate.
With 100 billion yuan of clean air, the company enjoys market dividends.
The field of clean air downstream applications is broad. According to our calculations, the total space of the clean air market in the next three years will exceed 100 billion US dollars, of which chips, panels, medicine, breeding and 南京桑拿网 other are 86.4 billion, 51.6 billion, 30 billion, 60 trillion, 150trillion.
In terms of filter paper, it is estimated that the new market will total nearly 10 billion US dollars in three years and the annual replacement demand will reach US $ 4.8 billion.
As a leading company in the industry, the company has significant competitive advantages. It is expected to benefit from the continuous development of downstream application areas and the continuous expansion of the market size to achieve rapid volume growth.
Demand for high efficiency and energy saving has steadily increased, and expansion of production capacity has contributed to the increase.
In terms of VIP core materials, under the dual impetus of energy saving and environmental protection, its penetration rate in the field of refrigerators and freezers promotes a rapid increase. According to our calculations, the potential market space for VIP core materials on domestic refrigerators and freezers alone has reached $ 11.4 billion.
On the two sides of AGM, downstream battery demand is solid.
The company has advantages in cost and scale, expands production capacity, and is expected to further contribute to performance increase.
Risk factors: intensified market competition; fluctuations in product prices; capacity construction is less than expected.
Investment suggestion: The company is a leading company in micro glass fiber cotton, and the downstream market space is developing rapidly.
Taking into account the trade friction between China and the United States in 2019 that delays clean air orders in the electronics sector, other sectors such as farming are expected to contribute performance gains and drive the company’s performance growth to resume growth. We adjusted the company’s 2019-21 return to net profit attributable to1.
2.2 billion (previous forecast was 2.
68 ppm), with a net profit forecast of 4 in 2020.
30 ppm, corresponding to EPS prediction of 0.
61 yuan per share, CAGR for 2020-2022 is 34%.According to PEG estimation, PEG = 1 is given 34 times PE in 2020, corresponding to a target price of 12 yuan, maintaining a “buy” rating.