We believe that the future of textile printing and dyeing auxiliaries - Chuanhua shares is promising, mainly because we believe that the textile printing and dyeing auxiliaries industry will at least maintain a rapid growth momentum of more than five years. The demand for textile printing and dyeing auxiliaries is mainly due to the fact that domestic demand for textiles will continue to grow rapidly due to the continuous increase in the income of Chinese residents (especially rural residents), and the increase in income will definitely bring about the demand for upgrading textile and apparel consumption. It has brought rare development opportunities for the development of textile printing and dyeing auxiliaries industry; in recent years, China's textile exports still maintain a growth rate of more than 20%, and it is expected that the growth rate will remain in the future; in addition, China's textiles have already accounted for 30% of the world textile trade. If the market share above % continues to rely on the substantial increase in production, it will inevitably be opposed and restricted by some countries. The upgrading of export products will become the main trend of the industry. Lcd Tft Display,Tft Lcd Screen,1.14 Inch Tft Lcd,1.14 Inch Lcd Display Shenzhen Yetai Optoelectronics Technology Co.,Ltd. , https://www.yetailcd.com
Some of the company's fund-raising projects (20,000 tons of fabric coating agent, 22,000 tons of fabric finishing technology and 20,000 tons of dyeing auxiliaries) have been completed and put into operation in June 2006, which has long plagued the company's development. The production capacity bottleneck was solved and the performance growth was guaranteed.
The company's main raw material prices are expected to be in a downward channel, and there is room for improvement in future earnings.
The development of the textile industry and the rising prices of raw materials are the main risks that the company may face.
According to the price-earnings ratio of listed companies and small and medium-sized enterprises listed in the chemical industry, we believe that the company's reasonable price is 21.36~23.68 yuan (the median equivalent to the dynamic price-earnings ratio of 23.63 and 19.07 times in 2007 and 2008 respectively), we believe that the company's stock price is still undervalued 50 Around %, continue to maintain the "Buy" investment rating.