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Chuan Hua Shares: China'S Textile Chemicals Expert With High Growth Potential

2010/10/23 11:58:00 47

Zhejiang

Pass shares

Ltd. belongs to the textile chemicals industry, and is specialized in providing integration for the textile and dyeing industry.

printing and dyeing

The system integrator of the solution is the leading enterprise in China's printing and dyeing auxiliaries industry and the first listed company in the industry.

At present, the company's main business mainly includes three parts, such as dyeing auxiliaries, dyestuff, leather chemical fiber oil agent and so on, and the three business accounts for 42.3%, 31.4% and 26.3% respectively.

The long-term and stable development of the textile industry has ensured the steady growth of the demand for textile chemicals in China.

In addition, with the upgrading of domestic residents' consumption and the green barriers in international trade, the elements of comfort, health and environmental protection in textiles are becoming more and more popular, bringing new growth to the textile chemicals industry.

At present, the company has 130 thousand tons of printing and dyeing auxiliaries, 50 thousand tons of chemical fiber oil and 35 thousand tons of activity.

dyestuff

Capacity and market share reached 8%, 27% and 18% respectively.

In addition, in October 2010, the company's active dyestuff technical pformation project was put into operation, and its capacity increased to 60 thousand tons. In June 2010, 50 thousand tons of chemical fiber oil additives and 30 thousand tons of silicone softeners will be put into operation in the 1 quarter and the 4 quarter of next year.

Capacity expansion has laid the foundation for the company's future growth.

Over the past 20 years, the company has been focusing on the main textile chemicals industry, and actively promoted the extension of the industrial chain and the optimization of product structure, thus forming a "dyeing and aid integration" business mode to help textile and dyeing enterprises obtain excellent products.

The operation mode of "integration of dyeing and aid" will help companies save sales resources, and on the other hand, it will continuously enhance the "Stickiness" of downstream customers to the company and enhance the competitiveness of the company in the field of textile chemicals.

According to the model, the EPS per share of the 2010-2012 companies is 0.71, 0.98 and 1.27 yuan / share respectively.

Combined with the current overall valuation of the industry, we believe that the PE valuation given to the company 30 times in 2010 and 25 times in 2011 is more reasonable, corresponding to the reasonable stock price 21.3-24.5 yuan, giving the "recommended" investment rating.