Fenglin Group (601996): Proposed to build a new 500,000-square-meter super-strand particleboard production capacity and actively promote the new coastal port strategy
On November 12, the Fenglin Group issued the proposed “Agreement on the Development of an Ultra-strong Particleboard Project with an Annual Output of 500,000 Cubic Meters” and the Announcement of Establishing a Subsidiary for Foreign Investment.
The company plans to invest in the establishment of a project company in Fangchenggang, Guangxi, to construct the “Fenglin Group Super-Strength Particleboard Project with an Annual Output of 500,000 m3”. The total planned investment for the project is 700 million U.S. dollars. Within the year.
It is planned to invest in Fangchenggang to produce an ultra-strong particleboard project with an annual output of 500,000 cubic meters, and actively promote the announcement under the coastal port strategy. In order to meet the strong demand for high-end functional wood-based panels and further enhance the company’s industry competitiveness, Fenglin Group intends to establish a Zhuang nationality in Guangxi.The Fangchenggang city of the autonomous region has invested in the establishment of a project company to construct the “Fenglin Group Super-Strength Particleboard Project with an Annual Output of 500,000 m3”.
The project has a total planned investment of 700 million yuan and is located in the Jiulong Lake Ecological Science and Technology Industrial Park of Fangchenggang City, covering an area of 400 acres. The construction period is within 2 years after the Fangchenggang City People’s Government completes the official completion of the five connections and one leveling.
Among them, the project company is Guangxi Fangchenggang Fenglin Wood Industry Co., Ltd., with a registered capital of 300 million U.S. dollars, and its business scope is the research and development, production and sales of wood-based panels and related further processed products. The project company is 100% controlled by Fenglin Group.
At the same time, in order to carry out the project smoothly, the company intends to amend the Fangchenggang Municipal Government’s “Development Agreement for Fenglin Group’s Annual Production of 500,000m3 Super-Strand Particleboard Project”.
In terms of production capacity, the company’s three fiberboard factories currently have a total capacity of 680,000 cubic meters; the two particleboard factories have a total capacity of 620,000 cubic meters; at the same time, the company’s Kawerau New Zealand annual production of 600,000 cubic meters of particleboard production line construction project is being implemented.
In addition, the company’s capacity utilization rate has been maintained at 100% in recent years. Nanning and Chizhou factories realized full production in the year when they were put into production. Huizhou and Chizhou factories 成都桑拿网 realized losses and turned into profits in the same year.
It is estimated that the annual production capacity of 500,000 cubic meters of super particleboard will be 2.4 million cubic meters after the completion of the project.
We believe that after the company’s annual production of 500,000 cubic meters of super particleboard project is completed, the capacity scale, especially the capacity of SSPB (super particleboard) will be significantly increased, gradually increasing the market share of high-end functional wood-based panel products with strong market demand;At the same time, advancing productivity construction in Fangchenggang in Beibu Gulf City will help the company to use overseas high-quality large-diameter material resources, actively promote the coastal port strategy, continue to enhance the company’s core competitiveness and sustainable development capabilities, 北京夜网 and promote the company to achieve “China’s leading”.
World-class “long-term strategic goals.
Focus on environmental protection high-end market, high-value-added products continue to develop, and short-term profits are expected to continue to increase. The company continues to meet the high-end market segments by continuously increasing the proportion of environmentally-friendly high-value-added artificial board products such as milled panels, moisture-proof boards, and formaldehyde-free boards.Strong demand.
In terms of products, in 2018 the company’s fiberboard, particleboard and forest trees achieved revenue 9 respectively.
48 ppm, an increase of 15 each year.
With the technical renovation of the Nanning plant in 2018 (300,000 cubic meters of super particleboard) and the acquisition of the Chizhou plant, the technical renovation (200,000 cubic meters of fiberboard) project is completed, and the company’s proportion of high value-added artificial board products will continue to increase.
In addition, the company actively promotes forestation and afforestation, and continues to build the “forest-board integration” industry chain. Currently, it has about 200,000 mu of fast-growing and high-yielding forest land in Guangxi.
At the same time, the company’s environmental protection construction leads the industry, focusing on the safe and environmentally friendly high-end market.
At present, all the company’s particleboard and fiberboard production lines are continuous continuous press production lines. The main equipment is imported from Germany, Italy, Switzerland and other countries. It is the most advanced production line in the world at present, and the average single-line scale is much higher than the national average.
The product structure of fiberboard is based on high-end products such as formaldehyde-free boards, millboards, moisture-proof boards, and E0-level low-odor boards. Particleboard is mainly environmentally friendly products. E0-level low-odor boards, aldehyde-free boards, and Japanese F boards have been introduced.
In recent years, the company has invested more than 200 million US dollars in environmental protection. Each factory has established advanced exhaust gas dust removal systems, and the actual flue gas emissions far exceed national standards.
We believe that the company focuses on the environmental protection high-end market. With the company’s continuous increase in the proportion of high value-added products and the Nanning plant, the Chizhou plant increased production capacity and put it on the market. Short-term profits have continued to grow.
Investment suggestion: The company’s product structure is continuously optimized, production capacity is continuously upgraded and expanded, and future growth is expected.
We expect the company’s operating income to be 20 in 2019-2020.
7.8 billion, an increase of 26 each year.
36%; net profit attributable to mothers is 1.
1.8 billion, an increase of 26 each year.
02%, corresponding to the latest PE is 17.
7 times and 14.
2x, maintain “Buy” rating. Risk warning: less than expected production capacity; sluggish downstream demand.