Voyage Shares: Status Quo Of Textile Printing And Dyeing Industry

Event:

We did some research recently. Voyage shares We have communicated with our company about the company's operation and future development plan. Our views are as follows.

Comment:

　　 Spin Printing and dyeing business: production capacity has increased and profits are basically stable.

The concentration of textile and dyeing industry is low, and the scale advantage of the company is remarkable.

The company's leading product printing and dyeing and dyeing and finishing textiles are located at the lower end of the textile industry chain.

Spin printing and dyeing The industry level and market concentration of the industry are relatively low. Due to the pressure of increasing labor costs and increasing environmental and resource constraints, resource integration is increasingly heading for leading enterprises. At present, the company's textile printing and dyeing capacity reaches 910 million meters, while most of the textile and dyeing industries have capacity between tens of millions of meters and 100 million meters.

At the same time, the company has a thermoelectric service which is matched with printing and dyeing, so that the company's production is not affected by factors such as insufficient heat, sluice and power restriction, etc.

From the existing capacity utilization rate, we can maintain full load production. From the perspective of the new capacity release: (1) in 2012, two workshop of Dyestuff Chemical Transformation and dyeing and dyeing in Qianjiang printing and dyeing chemical industry Co., Ltd. was completed and put into operation for 72 million meters, but due to the running in and debugging of human-machine, the efficiency of the new production capacity was low. It is estimated that the new capacity efficiency will be truly reflected in 2013. (2) the second workshops of printing and dyeing branch have completed the overall transformation and put into operation after the Spring Festival this year. (3) in 2013, the printing and dyeing branch will have an additional capacity of 20 million meters.

　　 Printing and dyeing and printing and dyeing textiles have maintained steady growth and their profits are basically stable.

The company's textile printing and dyeing products are located in the high-end and have strong bargaining power. Since 2011, the prices of their products have continued to rise, and the price of different products has increased by 4%~10%. After the Spring Festival this year, the price has been raised three times. The total price has increased by about 0.3 yuan per meter. At the same time, the company has increased its output by improving its technology and cost.

Volume and price drive textile printing and dyeing business to maintain steady growth, 2010~2012 textile printing and dyeing business revenue compound growth rate of 12.79%, revenue contribution increased year by year, accounting for 70% from 2010 to 75.86% in 2012; 2012 textile printing and dyeing business income reached 1 billion 928 million yuan, an increase of 7.68% over the same period last year.

Improve production efficiency, optimize product structure, reduce dye auxiliaries consumption and control.

Under the combined effect of energy costs, the gross profit rate of textile printing and dyeing has also increased slightly year by year, from 20.16% in 2010 to 21.35% in 2012.

　　 Weaving cloth profits grew steadily, and nonwoven profit declined.

The company's weaving business is based on purchased polyester thread as the main raw material, nonwovens mainly focus on synthetic leather substrates and sanitary materials. These two kinds of cloth are a useful supplement to the whole development of the company.

From the profitability of the two kinds of fabrics: (1) weaving fabrics, 2010~2012 weaving fabric revenue compound growth rate of 49.32%, gross profit margins due to the air jet loom production increased faster, from 2010 to -0.19% significantly increased to 17.47% in 2012, the proportion of income rose from 3.11% in 2010 to 5.26% in 2012; 2012 weaving income to achieve 134 million yuan, an increase of 13.63% over the same period. (2) nonwovens, the compound income growth rate of nonwoven fabrics in 2010~2012 was 1.32%, gross profit margin decreased from 12.49% in 2010 to 11.69% in 2012, and the proportion of income decreased from 7.93% in 2010 to 6.35% in 2012. In 2012, the income of nonwoven fabrics was 161 million yuan, down 20.5% from the same period last year.

　　 Supporting businesses such as electricity, steam and coal: relatively stable operation

In recent years, the proportion of electricity, steam and coal business has been maintained at 30%. Among them, in terms of power generation business, because of the higher cost of coal power generation, lower electricity price and poor profitability, steam business is better. At present, part of the company's steam is used for dyeing and weaving of subsidiary companies. Some of them are used to meet the needs of enterprises in Guali Lei Industrial Park and Jiangdong Industrial Park, and steam prices are regulated by the market according to the guidance price standard of price departments. In 2010~2012, the composite growth rate of electricity and steam revenue was 3.58%, and the proportion of income decreased year by year, accounting for 23.36% from 23.36% in 2010 to 594 million in 2012.

With the upgrading of technology and equipment, the efficiency of power generation and steam has been increasing. The gross profit margin has been continuously increased, from 15.72% in 2010 to 21.73% in 2012.

　　 Transportation business: deterioration of operating environment, loss for two consecutive years

At present, the company has three bulk carriers and 65 thousand and 800 tons of gross tonnage. Coasting trade Part of the capacity is used for coal transportation.

Since 2011, the shipping industry has been deteriorating in operation environment, low transport price, insufficient supply and high cost of maintaining fleet. The company's transport business has been losing money for two consecutive years. In 2012, the revenue of transportation business was 55 million 190 thousand yuan, up 34.51% from the low base level, and the income was 2.17%. Gross profit margin dropped from -0.71% in 2011 to -12.96% in 2012. Net profit deficit expanded from 6 million 880 thousand yuan in 2011 to 2012 24 million 630 thousand yuan in 2012. It is expected that the profitability of the company's transport business is difficult to change under the condition of the overall operation of the shipping industry, but this business has a greater contribution to the synergy effect of the overall operation of the company, and the possibility of peeling off is very small.

Shale gas business: to break through the bottleneck of the main business development, and to cultivate new profit growth points, the company and the seventh geological team of Zhejiang province began to participate in the tendering of shale gas prospecting rights in 2012. Although they did not win the bid, they established a good relationship. Seventh the geological brigade has strong professional and technical ability and has certain geological and mineral resources (mainly in Zhejiang province). At the beginning of 2013, the two parties signed the framework agreement on mineral exploration and development cooperation. Mineral resources exploration and development is a strategic direction for the company in the future. The company will push forward and control risks. But taking into account the fact that investment in mineral resources really forms production and benefits, it will take a long time (5 years without meeting benefits, such as applying for prospecting right to report for 3 years, and then mining for 5 years).

Investment rating: maintaining "prudent recommendation" rating

The EPS forecast for 2013~2015 increased by 0.77, 0.88 and 1 yuan respectively. The current stock price corresponding to the 2013 PE is 13.9 times that of the "prudent" investment rating.

Risk warning

The loss of transport business has expanded, dragging down performance growth, overcapacity and weak market demand.