Backed by Ten Home Appliance Giants: Ding Sheng New Materials IPO Daily Limits

At 9:30 am on April 18th, Dingsheng New Material opened its daily limit, and the stock price rose sharply by 20.02%. After that, on April 19 and 20, the hot limit of the opening limit was continued.

After the listing on the Shanghai Stock Exchange, Dingsheng Xincai (603876) hit a daily limit of three consecutive days. The industry generally believes that this is related to Dingsheng New Materials' endorsement of the 'unicorn' status in the aluminum foil industry and endorsements of many well-known big names.

Industry 'Unicorn' : Occupy a number of first in the aluminum foil market

The prospectus disclosed before the listing shows that Dingsheng Xincai was established in 2003 and has been engaged in the research, development, production and sales of aluminum foil and foil. The main products are air-conditioning foil, single-zero foil, double-zero foil, aluminum strip, and new energy battery. Foil, etc., Products are widely used in green packaging, home, home appliances, lithium batteries, transportation, architectural decoration and other fields.

The broad aluminum industry includes bauxite mining, aluminum smelting (aluminum oxide and electrolytic aluminum production) and aluminum processing. According to different processing technologies, aluminum processing can be divided into rolling and extrusion processing. New materials belong to Aluminum rolling processing industry.

The prospectus shows that Dingsheng New Materials in 2015, 2016 and 2017, aluminum foil production and sales volume, export volume and market share ranked first in domestic similar enterprises, aluminum foil products in the air-conditioning foil, single and double zero foil production and marketing The quantity also ranks first in the domestic similar enterprises. At the same time, the products are exported to more than 60 countries and regions such as USA and Europe.

According to a written certificate issued by the China Non-Ferrous Metals Processing Industry Association, the sales volume of Dingsheng New Materials' battery foil products was the largest in the industry during the reporting period. The battery foil customers covered CATL, ATL, BYD, and Guoxuan. Gaoke and other domestic basic large-scale lithium battery manufacturing enterprises.

'Can be the first in many industries, and there are few in the two cities!' An unnamed investor believes that Dingsheng New Materials can be described as 'Unicorn' in the 'Unicorn'.

Corresponding to the competitiveness of enterprises, Dingsheng New Wood’s revenue growth is also singing all the way. From 2015 to 2017, Dingsheng New Materials realized operating income of RMB 6.418 billion, RMB 7.089 billion and RMB 9.200 billion respectively. The net profit of the parent company's shareholders was 161 million yuan, 334 million yuan and 272 million yuan. Among them, 2017 operating revenue increased by 29.78% year-on-year.

Dingsheng Xincai expects operating income of RMB 2.3 billion to RMB 2.7 billion in the first quarter of 2018, an increase of approximately 14.89% from the same period of the previous year to 34.87%. It is expected that the net profit attributable to owners of the parent company in the first quarter of 2018 will be 5,300. Ten thousand yuan to 63 million yuan, an increase of approximately 16.65% from the same period last year to 38.66%.

China National Grid learned that from 2015 to 2017, sales revenue of air-conditioner foil, single-zero foil and double-zero foil accounted for 80.44%, 77.31% and 78.36% of the sales revenue of main products of Dingsheng New Materials respectively.

Big-name endorsement: Hovering more than ten well-known home appliance giants

As a new stock, if you want to drive the stock price up, strength alone is not enough. The reason why Dingsheng New Materials can attract a large amount of funds in a short time and stir-fry, but also benefited from dozens of well-known home appliance giant's 'assist'.

The information disclosed in the prospectus shows that as the world’s largest air-conditioning foil manufacturer, downstream customers of Dingsheng New Materials include Midea Group, Gree Group, Hisense Group, Haier Group, Japan Daikin Group, LG Group, Panasonic Group Etc., is the air-conditioning foil core supplier for almost all major air-conditioning manufacturers.

In 2015, 2016 and 2017, the top five customers of Dingsheng New Materials accounted for 19.55%, 19.91% and 23.55% of the total sales revenue, respectively, as follows:

China National Grid inquires about the sales records of Dingsheng New Materials major contracts, and found that in addition to the above Oaks, Chigo, Galanz It also ranks among its top ten domestic customers. In addition, Dingsheng McQuay, Mitsubishi, Fujitsu And other well-known enterprises have established cooperative relations.

In addition to air-conditioning foil, Dingsheng New Materials has accumulated a deep customer base in the field of battery foil. BYD, Zhuhai Yinlong, Ningde Times Well-known battery companies are also Dingsheng new materials 'teammates'.

The industry believes that, in addition to leading position in the industry and endorsement by big names, the international aluminum price surge is also one of the direct factors for the rising price of Dingsheng New Materials. It is reported that LME aluminum prices have risen by 30% in the past 10 days.

'Aluminium prices may inflate inventories of the company.' An investor said in an exchange that the rise in aluminum prices will lead to the appreciation of Dingsheng New Materials, which will also lead to an increase in the cost of raw materials in the later period. This is both good and bad. .

Listed fundraising: 600 million for investment in battery foil projects

According to public information, Dingsheng New Materials has a total share capital of A shares of 430 million shares, of which the number of new public offerings is 65 million shares, which will be listed on April 18, 2018.

The prospectus shows that the nominal value of new shares offered by Dingsheng New Materials is RMB1.00 per share and the issuance price is RMB13.54 per share. Of this IPO, about RMB600 million will be used to generate an annual output of 50,000 tons. Aluminium alloy foil project for battery electrode.

Dingsheng Xinzi believes that with the promotion of national policies, the energy density of new energy power batteries will increase, and the infrastructure including DC charging piles will become increasingly perfect. The demand for new energy power vehicles will usher in explosive growth. Lithium-ion rechargeable battery positive current collector is of great significance for improving the performance of hybrid battery and electric vehicle power battery. The market prospect is broad.

And from the perspective of improving profitability, compared to air-conditioning foil, single-zero foil, double-zero foil, Dingsheng new material, the battery foil gross margin is more than 20% for three consecutive years. By increasing the proportion of battery foil business to enhance profitability. Ability, is also an important path to enhance the competitiveness of enterprises.

At 9:30 on April 23rd, Dingsheng Xincai (603876) reported 25.96 points, up 10.00%, and closed at 25.96 yuan.

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