Cigarette industry getting better price

Cigarette industry getting better price Background Cigarette industry mainly includes two aspects The main industries include enlarging enlarging enlarging printed materials and two links. Cigarette industry is the packaging and printing industry sub-sectors, generally involves enlarging printed materials and enlarging the two links. Upstream enlarging materials include paper, original film, through material handling (enlarging material) and printing (enlarging print) two links to the downstream cigarette factory packaging. Enlarging its current form, the main material for vacuum aluminum paper and attached to the membrane. Metallized paper with environmentally friendly recyclable qualities, is currently widely used in high-grade cigarettes. Enlarging print closer to the downstream customers, the relatively high profitability underlying A Shanghai company for the new green, Jin Jia shares and Dongfeng shares. Currently involved in enlarging vacuum aluminum material mainly Shanghai Green New (002,565), in addition to shun shares (300,057), and Zijiang (600,210) are also part of the business involved. Involves enlarging for printing Jin Jia shares (002,191). The Dongfeng shares (601,515) of the whole industry chain more involved enlarging printed materials and enlarging two links provided upstream raw material prices low earnings elasticity Cigarette smoke is the main raw material card (a white cardboard). White cardboard industry profits in previous years due to better attract a lot of capital investment. 20,132,014 was the peak of the sub-sectors of white cardboard production release of new products, including Sun Paper, Bo Paper, Nine Dragons Paper, APP and other companies can continue to release white cardboard industry expected annual capacity utilization will remain 20132014 continued to fall. White cardboard prices expected to rise from the previous pass to cigarette card club card industry, expected future prices tobacco card is a high probability event, will offer classes cigarette tobacco control lead to lower corporate earnings elasticity downstream cigarette limited growth China is the world's largest tobacco consumer market, the consumption of tobacco products accounted for about one-third of the global total. Chinese tobacco system from the 1980s, the management of local small and scattered, the tobacco monopoly to the 1990s introduced legislation in 2000 to implement a unified administrative and economic management functions at the same time by the National Tobacco Administration. July 2013, China Tobacco Control Plan (2012-2015) program introduced, five Plan also proposed the full implementation of smoking in public places requirement, at present, Beijing, Shanghai, Hangzhou, Yinchuan, Guangzhou, Tianjin other provinces have enacted laws and regulations, the tobacco control into the legal process. In the context of tobacco control in recent years, the downstream industry production and sales of cigarettes limited growth. 20082012, China's cigarette sales CAGR of 2.9%, and year by year falling trend. In the first half of 2013, China's output of 25.89 million boxes of cigarettes, down 0.3%; sale of cigarettes 26.66 million TEUs, an increase of 1.8% in the direction of a Major tobacco powers by the transformation of tobacco The future development direction of China's major tobacco industries including: Brand centralized level on cigarettes and cigarette low coking. First, through the 532, 461 program, foster internationally competitive brands. Second, the level of cigarettes, reflected on the level and on the level of cigarette grade raw materials. Enlarging the leading class company services more than three types of key brands and cigarettes, high-end positioning so that it can follow the development of the downstream key brands of cigarettes, is expected to achieve faster growth in the industry. Third, the low tar cigarettes more healthy was a rapid development trend. Under great efforts to cultivate the State Tobacco Monopoly Bureau, the 2010 low-tar cigarettes cigarette sales accounted for the proportion of total sales was only 1.3% in 2011 has been raised to 6.8%, while in the first half of 2013, the proportion of low tar cigarettes has reached 13.8% . Learn from the development experience of the developed countries of Europe and Japan, the tobacco industry, the future of low tar cigarettes still experiencing rapid development of epitaxial two events will drive industry consolidation Enlarging the domestic industry concentration is low. It is estimated that the domestic industry market enlarging the scale of 300 billion yuan. The enlarging enlarging printed materials and considered together, the nation's largest producers enlarging the market share of less than 10% market share before 5 less than 30%. There are about 70% of the market share of some cigarette companies are affiliated enlarging enlarging production enterprises and local enterprises. Concentration downstream cigarette companies enhance the objective of supporting the integration of resources of raw materials upstream requests, and launched an open tender system and the exit of three production companies, the objective to provide a driving force for industry consolidation. Cigarette leading companies already listed, has the advantage of capital market platform, is expected to serve as the industry consolidator role in the future of listed companies by virtue of capital, rapid expansion of scale through mergers and acquisitions more popular electronic cigarette electronic cigarettes in Europe With growing public concern about their own health, and the development of technological advances, some of the cigarette alternatives have emerged, such as the more rapid development in recent years, electronic cigarette products in Europe. Electronic cigarettes are more popular in Europe, America, Europe and the traditional giant cigarette electronic cigarette products through the acquisition of a long-term arrangement. At present, the electronic cigarette is still in its infancy, the lack of uniform industry standards, acceptance of electronic cigarettes in the country is still low. Domestic electronic cigarette production base is mainly concentrated in Guangdong and Zhejiang provinces, less domestic production of products, mainly exported to Europe, America and Japan. Dongfeng shares as recently announced it intends to get involved in the field of electronic cigarettes. Chain of traditional cigarette companies, the long-term impact of new products depends on the structure and organization of investment targets strategic focus on its three stage SWS Research believes that enlarging industry is in the integration process, leading enterprises in the future by means of organic growth and external expansion, enhance concentration can be expected; while the growth of new business is expected to increase the valuation; recommend three investment targets, one east shares, with a steady growth of endogenous and high dividend yields provide a margin of safety, adequate cash flow with extension and expansion possible applications extends materials provide new growth points bulletin to expand into the field of electronic cigarette another growth pole, target price 22.7 yuan; Second, Shanghai green new, sustained robust implementation of extension and expansion strategy, the acquisition of Fujian Taixing significant thickening of 2013 results, and actively develop new business, the company expects 20,132,014 EPS were 0.68 yuan and 0.89 yuan, 19 yuan target price corresponds to 2013 28 times the valuation; Third Jin Jia shares, enlarging printing leader, is expected to promote improved governance structure company back on track, the company expects 20,132,014 EPS were 0.81 yuan and 0.99 yuan, target price 14.6 yuan, corresponding to 18 times estimated 2013 value.