The hottest industry integration creates the futur

2022-10-22
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Industry integration creates a white card giant, and the future profit center will continue to rise

release date: Source: gf's impact on products Securities - Bohui paper

Bohui paper's white cardboard production capacity (2.15 million tons) ranks second in the industry; The new version of "plastic limit order" + the clearance of white board production capacity stimulates the growth of white card demand

the clearing of white board production capacity stimulates the growth of white card demand

according to the company's 2019 annual report, the company's main business is white board and other papermaking businesses, with a total pulp and paper production capacity of 4.6 million tons, including 800000 tons of pulp production capacity, 215 tons of white board production capacity. This part of consumer demand shows a rigid 10000 tons, 650000 tons of box board production capacity, and 525000 tons of corrugated paper production capacity. The plastic restriction order will increase the long-term demand of the industry. It is expected to bring a replacement demand of 10000 tons of white cardboard from three aspects: replacing takeout lunch boxes, packaging boxes in the catering industry, and non degradable plastic bags

On August 28, 2020, Bohui paper disclosed that the actual controller of the company and golden light paper (China) Investment Co., Ltd. successfully completed the equity change in accordance with the equity transfer agreement. After the acquisition, Jinguang and Bohui account for 50% of China's total production capacity of white cardboard. The concentration of the white cardboard industry has increased significantly, and the leading bargaining power has been enhanced. In the future, the price center of white cardboard is expected to move up, and the profitability of the industry has been significantly improved. At the same time, the company is expected to form a broader coverage with Jinguang nationwide, coordinate and coordinate orders and production resources, reduce transportation costs and give full play to synergies

it is estimated that the annual revenue will be 13.061 billion, 17.474 billion and 21.609 billion respectively

as the production capacity of the company's projects put into operation in 2019 gradually climbs, it is expected that the utilization rate of the production capacity of various kinds of paper will increase, promoting the revenue to maintain a rapid growth rate. Regardless of the business integration with golden light paper after the acquisition, it is expected to achieve revenue of 13.061 billion, 17.474 billion and 21.609 billion respectively, with year-on-year growth of 34.1%, 33.8% and 23.7% respectively. According to the valuation level of comparable companies, considering that the company ranks second in the capacity of the white cardboard industry (regardless of the golden light paper industry, 2019), has strong pricing power, and the demand for white cardboard in the future is strong, many charged hydraulic servo universal testing machines are often used for high-load operation. The name of Suning bank was found to be highly prosperous in the industry and Commerce Bureau last year, giving the company the valuation of eps15xpe in 2021, with a corresponding reasonable value of 20.4/share, Give a "buy" rating

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