A: Basic Information of the Company
Company Full Name: Zhonglun New Materials Co., Ltd.
Stock Code: 301565
Stock Abbreviation: Zhonglun New Materials
Region: Xiamen, Fujian Province
Industry: Rubber and Plastic Products Industry
Establishment Date: April 2, 2004
Issue Price: 11.88 CNY/share
Founder: Yang Qingjin
Company Website: https://www.sinolong.net
Registered Address: No. 268-1 Wengjiao Road, Haicang District, Xiamen, Fujian Province
Total Share Capital: 198 million shares
Market Capitalization: 79.06 billion CNY (as of October 24, 2024)
Business Scope: Research, development, production, and sales of functional BOPA films, biodegradable BOPLA films, and polyamide 6 (PA6) and other related material products.
Company Profile: Zhonglun New Materials is a world-leading ecological integration technology company in the film industry, committed to providing green technology materials for human health and safety through material technology innovation. The company focuses on new energy film materials, biodegradable film materials, functional film materials, high-performance polyamide materials, and other fields, with a global leading production and sales scale, and has developed into a global supply chain for functional film materials.
B: Value Investment Analysis
Key Financial Indicators:
Revenue: 1.812 billion CNY for the period of January-September 2024, a year-on-year increase of 6.92%.
Net Profit: 115 million CNY for the period of January-September 2024, a year-on-year decrease of 29.41%.
Market Capitalization: 79.06 billion CNY (as of October 24, 2024).
PE (TTM): 34.83, Price-to-Book Ratio: 3.47.
Company Investment Value:
Zhonglun New Materials, as a leading global company in the field of film industry ecological integration technology, demonstrates a high investment value with its advantages in the research, development, production, and sales of functional BOPA films, biodegradable BOPLA films, and polyamide 6 (PA6) and other material products. The company's products have entered the supply systems of well-known terminal brand manufacturers such as CATL and BYD, and are widely recognized by customers, with significant market share and brand influence.
Company Growth Potential:
The growth potential of Zhonglun New Materials is mainly reflected in the following aspects:
Technological Innovation: The company has a deep technical accumulation in the field of biaxial stretch technology and is one of the few enterprises in the world that has mastered the processes of step stretching, mechanical synchronous stretching, and magnetic levitation linear motor synchronous stretching, with 199 patent authorizations, having significant advantages in technological innovation and R&D.
Market Demand: With the continuous significant trend of consumer upgrading, the global flexible packaging market as a whole shows a steady growth trend, providing a broad market space for the company.
Industrial Chain Integration: The company has built an integrated upstream and downstream film material industry ecology strategy, laying a solid foundation for the sustainable development of the business.
Industry Support Policies:
National support policies for new materials, environmental protection packaging, and other strategic emerging industries provide a favorable external environment for Zhonglun New Materials. With the development of related industries, it will further promote the growth of the functional film materials industry, bringing more development opportunities for the company.
International Policy Risks:
Zhonglun New Materials may face risks such as changes in trade policies and exchange rate fluctuations in the process of internationalization. The company needs to closely monitor international market dynamics and flexibly adjust market strategies to cope with potential policy risks.
A.Top's Investment Review:
Zhonglun New Materials, as a leading global company in the field of film industry ecological integration technology, shows strong investment value and growth potential due to its technological strength, market prospects, and industrial chain integration. However, the company may also face certain policy risks in the process of internationalization. Investors should comprehensively consider the company's technical capabilities, market prospects, and potential risks when considering investing in Zhonglun New Materials, and make rational investment decisions.