Daya Icon (000910): Underrated brand wood flooring and wood-based panel faucet

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Daya Icon (000910): Underrated brand wood flooring and wood-based panel faucet

Leaders in the wood flooring industry and wood-based panel industry are firmly attached.

The company’s main business segment is two-wheel drive, with a total annual production capacity of 53 million square meters of floor production and an annual output of 1.85 million cubic meters of medium and high density board and particleboard.

After more than 20 years of deep cultivation of the main business, the company’s profitability improved significantly after the divestiture of assets in 2015.

The flooring industry has grown steadily, and the concentration is expected to further increase.

The total sales volume of the flooring industry has steadily increased, but the industry’s competitive landscape is scattered.

From 2010 to 2018, the total annual sales of wood and bamboo flooring 杭州夜网 in China’s flooring companies with a certain scale have been compounded to 0.

57%.

At present, there are about 2,000 companies in China directly producing flooring products, and the industry CR5 is only over 25%. TOP2 flooring companies Daya Icon and Nature Home have market shares of 11 respectively.

13% and 9.

58%.

The increase in the proportion of engineering channels in the initial flooring industry, the increase in material costs, environmental protection costs, logistics costs, and labor costs have all contributed to the industry’s concentration on large-scale leaders.

The wood-based panel industry is fiercely competitive and the industry is moving from scale expansion to structural optimization.

The proportion of chipboard and plywood in the advanced wood-based panel industry is constantly increasing.

Industry competition is fierce, and the competition pattern is more fragmented than the wood flooring industry.

Taking Daya Wood-based Panels with the industry’s highest production capacity as an example, based on volume caliber, the wood-based panels produced by them accounted for about 0 of the market share in 2017.

546%.

In terms of MDF caliber, Daya’s MDF market share also only accounted for 2 in 2017.

About 19%.

Along with the industry supply-side reform, the improvement of environmental protection standards and the increase in supervision, and the increase in the concentration of downstream industries, the wood-based panel industry has gradually realized a transformation from scale expansion to structural optimization.

The tooling business benefited from the rapid growth of the full renovation policy.

The company’s engineering business partners basically cover the top 100 properties.

By the end of 2018, there are more than 80 real estate partners in the “Shenxiang” flooring, of which Vanke is the company’s largest customer.

As the leading real estate is the main force for the construction of hardcover houses in the country, and the concentration of the real estate market has continued to increase, the “Shenxiang” flooring can also steadily increase its market share through deep cooperation with leading real estate.

The entire green industrial chain, brand + product power + service capabilities create the company’s moat.

The company implements the “green industry chain” strategy. At present, it has comprehensively covered seven major changes in forestry resources, substrates, factories, research and development, design, marketing, and services, and formed a comprehensive and complete quality intelligent control system.

“Shenxiang” flooring is widely known, and “Daya” wood-based panel is the preferred substrate supplier for well-known brands in the industry, and the brand value of the two brands remains the first in their field.

Continuous R & D investment, advanced technology and equipment and excellent service capabilities ensure that the company’s flooring and wood-based panel product strength always maintains a leading position in the industry.

Covered for the first time and given a “Buy” rating.

The company is expected to achieve revenue of 75 in 2019-2021.

88/79.

49/83.

10 ppm, a ten-year increase4.

5% / 4.

8% / 4.

5%, realizing net profit attributable to mother 7.

86/8.

41/9.

02 trillion, an annual increase of 8.5% / 7.

0% / 7.

1%.

The closing price on May 7, 2019 was 12.

00 yuan corresponding to PE is 8.

45X / 7.

90X / 7.

37 times.

Refer to comparable company average PE (TTM) 32.

91 times, considering that the company’s performance growth is the fastest but the leader is solid and currently estimated to be at a historically low level, giving the company a PE of 19-12 times, corresponding to 12.

78-17.

04 yuan, the first coverage given a “buy” rating.

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