Bao Lijia (301037) issued a notice on November 11, 2021, saying: Hai Chuang Fund Zhang, Su Guangning, Fan Shenglong, Lu Chen Wei, and Debang Fund Jin Ye investigated our company on November 10, 2021.
The main contents of this survey are as follows:Q: recently, there has been a shortage of large areas of electricity and energy throughout the country. does this have any impact on the production and operation of the company?
A: in September this year, Foshan Baolijia Chemical Co., Ltd., the only wholly-owned subsidiary of the company, limited electricity and production due to the restrictions on the use of electricity in industrial production in Guangdong Province, but the impact was not significant, and there was no power outage waiting for production. At present, Foshan Baolijia has resumed normal electricity production. Other factories are not affected by the power cut policy.
Q: what is the company's pricing model and price adjustment mechanism for downstream customers?
Answer: the company's product pricing has different pricing policies for different types of customers. Public bidding products for large direct sales customers generally determine the product price according to a specific formula according to the bulk raw material price information released by Anxunsi, and adjust the price regularly. Non-public bidding products are usually determined by consultation with reference to the market price; cost addition method is generally adopted for small and medium-sized direct selling customers, with reference to the market price. The cost addition method is generally adopted for dealers, which is determined through consultation with reference to the market price between the two parties.
Q: how is the company's production cost higher than the industry average?
Answer: on the one hand, due to the company's large procurement scale and certain raw material procurement bargaining power, the purchase unit price agreed between the company and some suppliers will generally be based on the market quotation of Anxun system and float a certain amount. Procurement also through the combination of contract and spot, through early price locking and other ways to alleviate the impact of raw material price fluctuations, so that the company's raw material procurement price is generally lower than the market quotation. In addition, the company will also purchase some raw materials in advance to prepare goods to alleviate the impact of raw material price fluctuations. On the other hand, due to the relatively perfect production capacity layout of the company, it has formed a national production capacity layout, and there are production plants in East China, South China, North China and Southwest China, which are more suitable for the delivery distance of customers. therefore, the transportation cost also has a certain advantage over other companies.
Q: upstream enterprises such as satellite petrochemical are also actively expanding similar business with the company. what are the competitive advantages of the company?
A: we think it is mainly reflected in two aspects: production capacity and technology.
Q: capacity barriers
Answer: due to the trend of intensive development, downstream manufacturers have put forward higher requirements for the supply stability and product quality of waterborne acrylic emulsion, so waterborne acrylic emulsion production enterprises need to have a certain scale of production capacity and supply capacity. However, the input amount of equipment and facilities for the production of waterborne acrylic emulsion is higher, and the construction period is longer. At the same time, with the increasingly stringent environmental protection policy in China, the environmental protection investment in the production and operation of waterborne acrylic emulsion will be further increased. At present, the company has formed a higher production capacity with a dominant position in the industry (376800 tons in 2020) and a national capacity layout, so it is difficult for other enterprises in the industry to form alternative production capacity for the company in the short term.
Q: technical barriers
A: the acrylic emulsion industry is an industry with high technical requirements. At present, the market for high-end products in the industry is mainly foreign-funded production enterprises such as Dow Chemical and BASF, while a small number of large domestic production enterprises such as Poly Lijia also have a certain competitive advantage. At the same time, due to the rapid iteration of downstream customer products, it is required that the research and development of upstream acrylic emulsion also need to continue to develop new products and functions. At present, the company has a R & D team of more than 60 people, the main core members are experienced and work for a long time, which can meet the constantly updated R & D needs of customers. With the improvement of the level of economic development, the market demand for waterborne acrylic emulsion is increasing, and the R & D investment required by production enterprises will gradually increase to meet the new needs of customers and the rapid change of technology. Therefore, if the waterborne acrylic emulsion production enterprises want to become bigger and stronger in the future, they need to have a certain technical strength.
Q: what is the competition pattern of the acrylic emulsion industry and the trend of the company's judgment of the industry?
A: we believe that there are two trends in the emulsion industry: first, environmental protection policies are becoming increasingly stringent, and small and medium-sized enterprises are under greater pressure of rectification or closure. Second, the downstream demand is more intensive, and downstream customers have high requirements for the stability of acrylic emulsion supply and product quality, so large customers are more willing to choose large-scale emulsion enterprises with large production capacity and strong R & D strength. Combining the above two trends, the integration of acrylic emulsion industry will be accelerated. In the domestic market, the main enterprises in the waterborne acrylic emulsion industry are Polijia and Badford, while other emulsion production enterprises, including Dow Chemical, BASF and other foreign-funded enterprises, account for a relatively small share. It is unable to form a greater competitive pressure on the above two companies in the short term.
Baolijia's main business: research and development, production and sales of waterborne acrylic emulsion
According to the third quarterly report of Baolijia 2021, the company's main income was 2.473 billion yuan, up 74.31% from the same period last year; the net profit was 46.8722 million yuan, down 38.65% from the same period last year; and the non-net profit was 43.5456 million yuan, down 41.58% from the same period last year. Among them, in the third quarter of 2021, the company's main income in a single quarter was 998 million yuan, up 71.79% from the same period last year; and the net profit in a single quarter was 1.7755 million yuan, down 93.9% from the same period last year. The non-net profit in a single quarter was 1.5597 million yuan, down 94.53% from the same period last year; the debt ratio was 68.59%, the financial expenses were 28.1078 million yuan, and the gross profit margin was 11.39%.
The stock has no agency rating in the last 90 days. In the past three months, the net outflow of financing was 8.4627 million, and the financing balance decreased; the net inflow of securities was 0, and the balance of securities lending increased. According to the Securities Star valuation analysis tool, Poly Lijia (301037) has a good company rating of 3 stars, a good price rating of 1 star, and a comprehensive valuation rating of 2 stars. (rating range: 1-5 stars, up to 5 stars)