Jiemei Technology (002859): Paper Carrier Leads Vertical and Horizontal to Expand New Space
Component packaging consumables leader, vertical and horizontal integration moat creates high profitability. Jiemei Technology is a paper carrier tape leader for passive component packaging materials. It develops plastic carrier tape and release film business in a horizontal and coordinated manner. It has maintained rapid and stable growth in the past few years.Revenue from March 2012.
3 ppm increased to 13 in 2018.
100 million, CARG reached 25.
9%; net profit from 0 in 2012.
31 ppm increased to 2 in 2018.
7.5 billion, CARG reached 43.
The company’s gross profit margin has remained at about 35% -40% for a long time, and its net profit margin has been 9% in 2012.
5% to 21% in 2018.
Although the performance and profitability of the MLCC industry have improved in 2019, vertical and horizontal integration has become the leader of the company’s packaging and packaging consumables. The deep moat will ensure the company’s high profitability and short-term fluctuations will not change the long-term development trend.
Paper carrier tapes look at the downstream MLCC to pick up in the short term, and optimize the customer structure in the medium to long term. The company is a leader in the niche market of paper carrier tapes. From base paper manufacturing to division / cutting / punching / punching, the entire industrial chain is vertically 天津夜网 adjacent,Horizontal development and production of supporting tapes, plastic carrier tapes, etc.
In the short term, the downstream MLCC industry bottomed out in the fourth quarter of 2019, which led to the increase in the rate of Jiemei crops. It has now returned to normal levels (less than 60% in 2019H1) and added a paper machine capacity in 2020H2.
In the medium and long term, the trend of component miniaturization will increase the use of high-end punched paper tapes, and the company’s share of high-end customers in Japan and South Korea will expand smoothly. The optimization of product and customer structure will drive the average price and added value of paper tapes.
In the long run, the development of 5G / vehicle / IOT and other industries promotes the continuous growth of demand for passive components, which drives the steady growth of Jiemei’s paper tape business.
New products are expected to replicate the development path of paper carrier tapes and open up new growth space. On the basis of the stable development of paper carrier tapes, the company’s business has expanded smoothly.The self-development of raw materials is progressing smoothly, and some customers have started to switch to products using self-produced black PC particles.
2. The release film is widely used downstream, and the MLCC and polarizer application market alone exceeds 10 billion yuan.
The company’s existing five release film production lines, in the fourth quarter of 2019, added two wide-format Korean production lines, and in October 2020, another wide-format Japanese production line was added.
In addition, the company issued convertible bonds to construct offshore membrane raw material projects, which copied the preliminary integration path of paper tape in advance, and promoted the growth of performance relay.
Target price see 46.
8 yuan, maintaining the “buy” rating of the company’s paper carrier tape leader, high-level profitability has increased the cornerstone of growth, and on this basis, expand plastic carrier tape, release film business, performance relay growth in the future can be expected.
Expected 2019/2020/2021 net profit1.
5 ppm, corresponding to PE 55/27/21 times, maintain “Buy” rating, target price see 46.
Risk warning: downstream recovery is less than expected; new product development and customer advancement are less than expected.