Dong CAI Technology Acquisition Of China Textile And Kate Military Textiles To Accelerate Development

< p > the company acquired the "a href=" //www.sjfzxm.com/news/index_c.asp "equity > /a" of Tianjin Sino textile Kate 100%, and signed a cooperation agreement with the general quartermaster, which will speed up the development of the flame retardant polyester in the military uniform market. In addition, the recovery of PV industry has brought prosperity to the company, and sales of solar panels are expected to exceed expectations. UHV construction speed will bring power capacity film capacity to release. We expect the company's 2013-2015 year EPS to be 0.15/0.33/0.45, the current share price corresponding to PE is 56.2/24.8/18.4 times, maintaining the company's "recommended" rating. < /p >
< p > Event: the company announced that it had purchased the 100% stake in Tianjin's Sino Thai textile company at a price of 12 million yuan, and signed a cooperation agreement with the Quartermaster Equipment Research Institute of the General Logistics Department of the PLA. The general military quartermaster has its own carbon fiber reinforced composite technology, personal protective equipment technology, and the research achievements, patents and proprietary technology of the electron beam irradiation polyester fiber flame retardant and anti melting technology, with the company's cooperative research and development bulletproof, personal protection and flame retardant and anti melting droplet < a href= "//www.sjfzxm.com/news/index_c.asp" > polyester fiber < /a > material items. < /p >
"P > acquisition and cooperation to speed up the development of the military market: Tianjin China Textile Co., Ltd. is a high-tech enterprise. Its products mainly include high performance bulletproof materials, high-performance fire protection materials, special individual labor protection products, etc., and has obtained two level of confidential qualification certificate and weapons and equipment quality management system certification certificate. After the completion of the acquisition, Tianjin China Textile Co., Ltd. will become an important platform for the military production and military service of the company, and will carry out comprehensive technical cooperation with the general military Quartermaster's bulletproof materials, personal protection and flame retardant and melt resistant polyester fiber materials. < /p >
< p > flame-retardant a href= "//www.sjfzxm.com/news/index_c.asp" > polyester < /a > will open up in the military market and expand in the future. The company acquired the Sino Thai Textile Co., Ltd. and signed a cooperation agreement with the general Quartermaster. The long-term development goal is to enter the military market in an all-round way, and the short-term goal is to speed up the progress of the flame retardant polyester in military uniform. The company currently has halogen free flame retardant polyester production capacity of 30 thousand tons, last year's sales volume of 7000-8000 tons, mainly for low flame retardant products, the capacity is not fully released, but also did not play the company's high level of flame retardant differentiation advantage. The company has conducted in-depth cooperation with the general post Quartermaster on the application of flame retardant polyester in military uniform (training clothes, combat clothing, flame retardant standard V1 level). The signing of the acquisition and cooperation agreement will undoubtedly speed up its application in military uniform products. Due to the huge demand for military uniform products, the company's 30 thousand tons of production capacity is not enough. Once a breakthrough is achieved, a huge market will be opened for flame retardant polyester. In addition, the flame retardant grade of polyester in military uniform is high. It can give full play to the technical superiority of the company's products and gain higher profitability. < /p >
Less than P, sales of solar panel backplane will double, polypropylene film production capacity is expected to release as soon as possible: the company's main growth point this year is in the two parts of solar cell backplane membrane and power capacitor using polypropylene film. Among them, the solar panel back panel has more than 20 thousand tons of intent contract in 2014, and the annual sales volume is expected to reach 24 thousand tons. The rapid demand for solar panels is expected to exceed the market expectations. In the case of increasing demand, the price of backplane film is expected to enter the price raising cycle. In terms of polypropylene film, the investment plan for power grid has been promulgated in 2014, and the investment growth rate is close to 20%. The investment growth rate exceeds the market expectation. It is expected that a number of UHVDC projects will start this year, which will directly increase the demand for polypropylene film of power capacitors by more than 10 thousand tons. The company is expected to get more than 50% of the new demand. UHV construction speed up and good company's new capacity release, contribute to the company's performance increment. < /p >
< p > risk warning: PV industry recovery progress is lower than expected risk; UHV construction progress is lower than the expected risk; flame-retardant polyester is not up to the expected risk. < /p >