Financial reporter Liu Jian
After the holiday, the capital market will welcome new listings. On the morning of October 11, Anhui Qiangbang New Materials Co., Ltd. (hereinafter referred to as "Qiangbang New Materials") was officially listed on the main board of the Shenzhen Stock Exchange. Qiangbang New Materials opened 800% higher, and triggered a temporary stop twice during the session, with an increase of more than 2400%. Behind the soaring stock price, Qiangbang New Materials is the first A-share listed printing plate leader, and coincides with the country's introduction of a series of policy measures to boost the capital market, but the company also has potential risks such as declining net profit, over-reliance on dealers, rising raw material prices, and increasing accounts receivable.
The intraday rose more than 24 times, and the highest profit in the first sign was 117,700 yuan
Founded in 2010, Qiangbang New Materials is one of the largest printing plate manufacturers in China, mainly engaged in the research and development and application of photosensitive materials in printing plates, the main products include CTP version, PS version, CTCP version, UV-CTP version, flexible resin plate, developer and related accessories, etc., the products are widely used in printed books and newspapers, album manuals, corrugated boxes, food packaging boxes, pharmaceutical packaging, etc.
According to the announcement, in this IPO, Qiangbang New Materials issued 40 million shares to the public, accounting for 25% of the total share capital after the issuance. The company's issue price per share is 9.68 yuan per share, and it plans to raise funds of 668 million yuan, with a total share capital of 160 million shares after issuance, which is mainly used for environmental protection printing plate capacity expansion projects, R&D center construction projects, intelligent technological transformation projects, repayment of bank loans and replenishment of working capital.
After ringing the bell on the 11th, Qiangbang New Materials opened 800% higher, and the opening increase quickly expanded to more than 1000%, triggering a temporary suspension, and then continued to attack, rising to more than 1300%, triggering a second temporary suspension. Since then, Qiangbang New Materials has continued to rise, with an increase of more than 2400%, and the price has fallen since then. As of the close of the day, the stock was quoted at 178.01 yuan / share, an increase of 1738.95%. If calculated according to the highest intraday stock price of 245 yuan per share, shareholders can make a maximum profit of 117,700 yuan in one signature (500 shares). Regarding the huge increase in the company's stock price on the first day of listing, Fengkou Finance contacted Qiangbang New Materials, but the company's staff did not reply positively, saying that they "do not know".
Before the issuance, the members of the Guo Liangchun family, the actual controller of the company, directly held 35.00% of the company's shares, and indirectly held 54.40% of the company's shares through Yuanbang Partnership, Qiangbang Partnership and Yulong Partnership, holding a total of 89.40% of the company's shares. After the completion of this issuance, the total proportion of shares held by Guo Liangchun's family is 67.05%.
Source: Company announcement (the same below)
Net profit fluctuated and declined
It is worth noting that the company's performance has fluctuated greatly in recent years, and its net profit has declined.
From 2019 to 2023, the operating income of Qiangbang New Materials will be 1.235 billion yuan, 1.093 billion yuan, 1.503 billion yuan, 1.585 billion yuan, and 1.425 billion yuan respectively, and the net profit will be 125 million yuan, 76.6772 million yuan, 70.467 million yuan, 98.8916 million yuan, and 93.5138 million yuan respectively. The data shows that the company's revenue has fluctuated greatly in the past five years, and the net profit has also been unstable, and it will decline again in 2023.
The company said that the company's revenue remained on a large scale, and in 2023, affected by the decline in the unit price of offset printing plate products and the demand in overseas markets was less than expected, the revenue declined slightly, and the company's net profit remained at a high level in 2022 and 2023, except for the relatively low impact of the sharp increase in the purchase price of aluminum coils, the main raw material.
In the first half of this year, the company's operating income was 735 million yuan, a year-on-year increase of 8.94%, and the net profit attributable to the parent company was 46.1271 million yuan, a year-on-year increase of 8.34%. The company said that it was mainly due to the gradual recovery of market demand for printing plates. However, the net cash flow generated by operating activities in the first half of the year was -2.3027 million yuan, a significant decrease of 120.71% year-on-year, mainly due to the recovery of the margin of notes payable at the end of 2022 from January to June 2023, and the inflow of funds of the same nature from January to June 2024.
In addition, the company also announced the performance forecast for the first three quarters of this year in the report. According to the forecast, the company's revenue in the first three quarters was 1.069 billion yuan to 1.208 billion yuan, a year-on-year increase of 1.69% to 14.92%, and the net profit attributable to the parent company was 68.5 million yuan to 76.9 million yuan, a year-on-year increase of 2.92% to an increase of 8.98%.
Highly dependent on distribution, the scale of accounts receivable has expanded
From 2021 to 2023, the sales revenue from the distribution model in the company's main business will be 1454.5199 million yuan, 1532214300 yuan and 1373.6042 million yuan respectively, accounting for 98.65%, 98.35% and 98.18% of the main business income respectively. According to the data, the company's dealers at the end of 2023 were 260, a decrease of 6 from 2022. The dealer network covers Europe, East Asia, Southeast Asia and other regions, and the products are sold to 28 provinces in China and more than 60 countries and regions abroad.
The distribution model accounts for a relatively high proportion of revenue, which brings stable performance to the company but also has potential management risks. The data shows that from 2021 to 2023, 40, 64, and 57 new dealers will be added that year, and the number of dealers will be reduced by 48, 39, and 63 respectively. The company also said that if the dealers cannot be managed continuously and effectively in the future or the cooperative relationship with dealers deteriorates, the company's marketing network channel construction and brand image will be negatively affected, which will have a certain degree of adverse impact on the company's operating performance.
In addition, the scale of the company's accounts receivable is also continuing to increase, accounting for a long time in the proportion of revenue at a high level, and the risk of bad debts needs to be vigilant. According to the announcement, from 2021 to 2023, the company's year-end accounts receivable balances will be 220.048 million yuan, 224.2335 million yuan, and 225.9856 million yuan respectively, accounting for 14.56%, 14.12%, and 15.85% of the revenue in each period respectively. The company also said that with the fluctuation of the scale of production and operation and the company's income and the changes in the market operating environment of the printing plate industry, the company's accounts receivable also fluctuated. However, if there is an adverse change in the future operation of the company's major customers, it may lead to the company's inability to collect the accounts receivable in full as scheduled, which will adversely affect the company's performance.
The price of aluminum coil is at a high level
The company uses aluminum coil as the substrate material for the production of offset printing plates, and aluminum coils account for about 85% of the direct materials of offset printing plates, accounting for a relatively high proportion, and the changes in the price of aluminum coils directly affect the company's product costs. Since the second half of 2020, the prices of some commodities have risen sharply, especially since 2021, the purchase price of aluminum coil has further increased, and the net profit realized by the company in 2021 is still lower than that in 2020 under the condition of operating income growth.
Fengkou Finance noticed that the price fluctuation of aluminum coil has been relatively small since the beginning of this year, but it is still at a high level, which has brought certain pressure to the company's profits. Fengkou Finance contacted Qiangbang New Materials on the price of aluminum coils, and the staff said that they would find relevant personnel to answer, but as of press time, no reply has been received from the company.
From the perspective of gross profit margin, the company's comprehensive gross profit margin in the past three years was 11.48%, 12.72% and 13.17% respectively, and the overall gross profit margin continued to rise. However, the company's gross profit margin in 2019 and 2020 reached 19.45% and 15.26% respectively, far exceeding the current gross profit margin.
The company adheres to the sales strategy of paying equal attention to the domestic market and overseas markets, and actively invests various resources to expand overseas markets to maintain the stability and growth of overseas market share. From 2021 to 2023, the company's overseas sales revenue will be 602.291 million yuan, 720.6904 million yuan and 591.5479 million yuan respectively, accounting for 40.85%, 46.26% and 42.28% of the main business income respectively, and overseas sales account for a relatively high proportion. Therefore, it is more obviously affected by the exchange rate. The company said that in recent years, the international political and economic environment has become increasingly complex, and the instability and uncertainty factors have increased significantly, and the foreign exchange rate may fluctuate greatly in the future, which will adversely affect the stability of the company's performance.