Voyage Shares: Quality Printing And Dyeing Enterprises, Looking Forward To Extension Development

　　 printing and dyeing The leading industry benefited from the industry concentration. The printing and dyeing industry in China has been dispersed. In the past 13 years, 1906 printing and dyeing enterprises in China have produced an average output of only 28 million meters. With the serious pollution of printing and dyeing industry and increasingly stringent environmental requirements, the elimination of backward production capacity in the domestic printing and dyeing industry has also been pushed forward. Over the past 4 years, it has eliminated more than 11 billion meters. It is expected that this trend will continue in the future. Voyage shares are the leading industry of the printing and dyeing industry in China. The capacity is about 900 million meters, and the market scale is the first. It has formed a complete industrial chain mode that integrates the development of thermal power, weaving / nonwovens, and marine logistics. Future Ltd is expected to benefit from the upgrading of industry concentration, and the market share will further improve.

Yutian technology is expected to be integrated. The company announced that it would not buy more than 200 million yuan to acquire more than 50% of Yutian technology. The company also has a deep experience in the dyestuff industry, and entered the dyestuff industry in 87 years. After the fierce competition in the industry, it withdrew in 2010, and the company has integrated strength, and the company has advantages in wastewater treatment, financial strength, and government relations. At present, we are entering the stage of completion, and we expect to complete the acquisition in the first half of this year.

Yutian technology has 25 thousand tons of dispersion. dyestuff Production capacity has been low due to environmental problems. It is estimated that the output will reach more than 20 thousand tons after completion. At present, the price of dyestuffs is higher and can be maintained under the pressure of environmental protection.

Cash is abundant and acquisition expectations are strong. The cash flow of the company is 920 million yuan. In the past years, the cash flow has achieved net inflow and cash is abundant. Even after deducting 200 million yuan of cash acquired from Yutian technology, there is still 720 million yuan in hand. Considering the frequent takeover intentions in the past, we believe that Future Ltd still has strong M & A intentions. Mergers and acquisitions can be carried out along two main lines: first, the "epitaxy" M & A, which is not related to the main business or group of the company, such as the big data, shale gas and other useful attempts; the two is "intentional" M & A, which may include mergers and acquisitions in the same industry, upstream and downstream integration, and group asset injection.

Earnings forecasts and Valuation: expected company The 15-16 year performance was 0.85 yuan and 0.97 yuan respectively, corresponding to the latest stock price PE of 14 and 13 times. As the industry leader, the company has benefited from the industry concentration degree, and the merger is expected to be strong. At present, the valuation is low, and for the first time, it is strongly recommended.