Global Printing (002799): The rapid development of the new contribution of the Internet precise marketing
1. The leader of domestic pharmaceutical packaging segmentation. The controlling shareholder is Shaanxi Pharmaceutical Group. The performance has continued to grow rapidly since 19 years. Global Printing was established on June 28, 2001. As a leading domestic supplier of pharmaceutical packaging solutions, it is mainly engaged in pharmaceutical packaging.Product development, production, sales, and provide customers with integrated packaging solutions such as graphic design, structural design, warehouse management, logistics and distribution.
In addition, in 2018, the company passed the acquisition of Horgos Lingkai Network Technology Co., Ltd. to provide customers with accurate Internet marketing services; in 2019, it acquired Beijing Jinyin Associates International Supply Chain Management Co., Ltd. to establish a supply chain management platform to integrate and integrate the industryDownstream resources.
The company’s equity structure is stable, and the actual controller is the SASAC of Shaanxi Province.
As of September 30, 2019, the company’s largest shareholder was Shaanxi Pharmaceutical Group, which has been holding the company 46 steadily since its IPO in 2016.
25% of the shares are the company’s main promoter, controlling shareholder and actual controller. It is a wholly state-owned company funded by the SASAC of Shaanxi Province.
Hong Kong Raw Stone and Bit Investment are mainly engaged in external equity investment and currently hold company shares respectively.
75% and 7.
5%, the second and third largest shareholders of the company.
The company’s main business of pharmaceutical packaging is stable. Since 19 years, it has benefited from the rapid development of mobile Internet advertising and its performance has accelerated significantly.
2014-2018 company revenue from 3.
92 ppm increased to 5.
550,000 yuan, a compound annual growth rate of 9.
10%; net profit attributable to mother from 0.
38 percent to zero.
28 ppm was mainly related to the increase in raw material prices and the increase in the proportion of corrugated cardboard business with a relatively high gross profit margin.
In 2019Q1-3, the company’s operating income was 8.
42 ppm, an increase of 130 in ten years.
23%; net profit attributable to mother is 0.
450,000 yuan, an increase of 177 in ten years.
The company’s consolidated gross profit margins for Q1-3 from 2014 to 2019 were 23 respectively.
93%, relatively stable overall. The improvement in gross profit margin in Q1 2019 was mainly due to changes in business structure.
In terms of products, 2019H1 company’s pharmaceutical carton products achieved revenue2.
40,000 yuan, fluctuating slightly 5 years ago.
04%, accounting for 45% of total income.
89%; Mobile Internet advertising has been consolidated since October 2018, and the company’s mobile Internet advertising in H1 2019 achieved revenue1.
99 ppm, an increase of 237 in ten years.
29%, accounting for 44% of total income.
With the overall packaging business steadily rising, the company’s mobile Internet advertising business has developed rapidly, bringing new growth points for the company.
2. Deeply cultivating the pharmaceutical packaging industry, with high-quality customer resources and orderly expansion of production capacity. Since its establishment, the company has been deeply cultivating in the pharmaceutical packaging field, constantly improving the pharmaceutical packaging industry chain, vigorously developing in the fields of pharmaceutical internal and external packaging, and forming an overall packaging marketing model.To enable pharmaceutical companies to enjoy one-stop services at Global Printing and help customers optimize supply chain management.
The company has a full range of products from pharmaceutical aluminum tubes, instruction manuals, packaging boxes, and outer packaging boxes. It has always integrated into the leading position in the domestic pharmaceutical packaging field, and coexists in the competitive advantages formed by pharmaceutical packaging, and has gradually expanded into the field of consumer product packaging.
The company maintains good cooperative relations with well-known pharmaceutical companies at home and abroad, and has excellent customer resources.The company has an excellent customer base composed of many well-known brand pharmaceutical companies including Bayer Pharmaceuticals, Johnson & Johnson Pharmaceuticals, Novartis Pharmaceuticals, Xi’an Janssen, Changchun High-tech, Hualan Biological and many other well-known brands.
Of the 13 pharmaceutical companies in the Fortune Global 500, 9 are long-term strategic partners of the company. At the same time, pharmaceutical companies and companies among the top 500 domestic enterprises have cooperated with more than 50% of the companies.
Therefore, the company’s main pharmaceutical packaging business will still maintain stable growth.
The domestic pharmaceutical packaging market has broad space, and the company’s production capacity has been expanded in an orderly manner to quickly meet customer needs.
According to the data of the “China Pharmaceutical Packaging Industry Market Prospect and Investment Strategic Planning Analysis Report” data, in 2018 China’s pharmaceutical packaging industry market size exceeded 100 billion yuan, reaching 106.8 billion yuan, maintaining stable growth.
Among them, the pharmaceutical packaging market is fragmented, and there are many companies in the industry, and the market concentration has decreased.
The domestic pharmaceutical packaging industry has large-scale and specialized production capabilities. The domestic pharmaceutical packaging enterprises are mainly Global Printing, Shenzhen Jiuxing, etc., and large-scale enterprises are still replacing.
With the country’s continuous evaluation in the generic pharmaceutical industry, environmental protection policy measures and raw material prices have risen, the market share of companies in the pharmaceutical market and pharmaceutical outsourcing market has continued to rise, and market concentration has been promoted.
The company’s production capacity expanded in an orderly manner, effectively covering the national market.
At present, the company has two major production bases in Xi’an Headquarters and Tianjin Global. The total design capacity of pharmaceutical packaging folding cartons exceeds 4 billion pieces per year. At the same time, it can seamlessly cover the domestic Northeast, North China, Central Plains, Northwest and Southwest regions, and replace services.Members of Congress, increase responsiveness.
In addition, the company’s business has gradually radiated into the field of consumer goods packaging, and has covered packaging services in the fields of fast-moving consumer goods, medical devices, health foods, fine chemicals, cosmeceuticals and electronic products.
In addition to producing outer boxes for ZTE mobile phones, the company also successfully entered Yili, L’Oreal, Betheny and other well-known fast-moving consumer goods supply systems in 2019.
3. The extension and transformation of the industrial chain, the rapid development of mobile Internet advertising business, the continuous layout of 无锡夜网 multiple fields to comply with the development trend of intelligent upgrading of the industry, centralized integration, and effectively improve business synergy and increase customer stickiness. The company has acquired Huo in 2018 and 2019 respectively.Ergos Lingkai Network Technology, Beijing Jinyinlian supply chain, by helping customers carry out comprehensive and accurate digital marketing and provide better value-added services based on the supply chain platform.
According to the company’s announcement on August 3, 2018, the company took 1.
Acquired 70% of Horgos Lingkai’s equity of 3.1 billion U.S. dollars, performance commitment, Horgos Lingkai’s 2018 net profit is not less than 45 million yuan, and the net profit should gradually be no less than RMB by the end of 2018-20201.
4 trillion, and maintain growth.
Horgos Lingkai’s main business is mobile Internet precision advertising, each with its own technology-driven integrated digital advertising platform, which can help advertisers achieve cost-controllable, transparent, secure and stable precision marketing for different customer requirements., Effectively reducing promotion costs.
It mainly provides mobile-end effect marketing for today’s headlines, Netease, Sohu, Dangdang, Gaode Map, Douyin and other well-known APPs.
Horgos Lingkai started consolidation in October 2018. From October to December 2018, Horgos Lingkai achieved operating income of 5942.
430,000 yuan, net profit of 779.
08 million yuan; of which net profit attributable to shareholders of listed companies was 545.
350,000 yuan, accounting for 19% of the company’s net profit attributable to its mother in 2018.
From January to June 2019, Horgos Lingkai achieved operating income1.
99 trillion, accounting for 44% of the total revenue of the company in 2019H1.
52%; net profit 2027.
760,000 yuan, of which the net profit attributable to shareholders of the listed company was 1,419.
420,000 yuan, accounting for 49% of net profit attributable to mothers in H1 2019.
The mobile internet advertising business for Horgos Lingkai brings new growth points for the company. Through the company to carry out all-round accurate digital marketing for existing customers through Horgos Lingkai, effectively helping customers improve brand awareness,Broaden sales channels, promote customer business development, and gradually strengthen good and stable cooperative relations between the company and customers.
In addition, the company announced on May 20, 2019 that 1.
Acquired 70% of Beijing Jinyinlian International Supply Chain Management Co., Ltd. for $ 2.2 billion.
Beijing Jinyinlian promised that the net profit in 2019, 2020 and 2021 will not be less than 20 million yuan, 22 million yuan and 24 million yuan, respectively, and maintain the growth trend.
Beijing Jinyinlian is a comprehensive solution provider focusing on providing printing materials and services for printing enterprises. It has established a complete sales and technical service network in developed areas of the major printing and packaging industries in the country including Beijing, Tianjin, Hebei, the Pearl River Delta, and the Yangtze River Delta.The parent company and its subsidiaries have accumulated more than 1,000 high-quality customer resources in the publishing and printing, pharmaceutical packaging, food packaging, and tobacco packaging industries.
After the acquisition of Beijing Jinyinlian, the company will use the industry supply chain management as the starting point to build a supply chain management platform covering the information flow, logistics, and capital flow of the printing and packaging industry, integrate the upstream and downstream resources of the industry, and synchronize the Jinyinlian customer expansion.With more market shares in the pharmaceutical and even fast-moving consumer goods sectors, industry consolidation is further promoted.
4. Implement the first phase of employee stock ownership plan to promote long-term development of the company According to the announcement on August 3, 2018, Global Printing intends to implement the first phase of employee stock ownership plan.
As of January 31, 2019, the company’s first employee shareholding plan has completed stock purchases, and the company’s stock has been gradually purchased through the secondary market 143.
140,000 shares, accounting for 0 of the company’s total share capital.
95%, the total transaction amount is 1753.
260,000 yuan, with an average transaction price of 12.
25 yuan / share, the stock lock-up period is 12 months.
We believe that the implementation of the first phase of the company’s employee stock ownership plan further binds the interests of company executives and core employees, improves the level of corporate governance, and promotes the company’s long-term, sustainable and healthy development.
5. Investment suggestion Global Printing is a leader in the domestic pharmaceutical packaging industry. It has a state-owned background, high-quality customer resources, and rapid development of new businesses such as mobile Internet advertising.
We estimate that Global Printing’s operating revenue for 2019-2020 will be 12 respectively.
71 ppm, an increase of 117 per year.
52%; net profit attributable to mothers is 0.
03 million, an increase of 125 each year.
53%, corresponding to PE of 47.
1x, first time coverage with “Buy” rating.
6. Risks indicate the policy environment of the pharmaceutical industry, the development situation is less than expected; changes in raw material prices; new business development is less than expected, etc.