HANGZHOU TOKA(SH:688571)2025-01-08 09:46Investment Rating - The report does not explicitly state an investment rating for Hangzhou Toka Ink (688571 CH) Core Viewpoints - The company is a leader in energy-saving and environmentally friendly ink products, with a focus on R&D for sustainable growth [2][19] - The company has established a product system centered around UV ink, offset ink, and liquid ink, which are widely used across various industries [3][19] - The company has shown consistent revenue growth, with operating incomes of 1.149 billion yuan, 1.139 billion yuan, and 1.190 billion yuan from 2021 to 2023, and a 7.16% year-on-year increase in the first three quarters of 2024 [4][19] Company Overview - The company primarily engages in the R&D, production, and sales of energy-saving and environmentally friendly ink products, digital materials, and functional materials [2][3] - The product range includes UV ink, offset ink, and liquid ink, which are utilized in food and beverage packaging, pharmaceuticals, and various printing applications [3][19] Financial Performance - The company's net profits for 2021, 2022, and 2023 were 113 million yuan, 80 million yuan, and 123 million yuan, respectively, with gross profit margins of 21.68%, 18.73%, and 24.48% [4][19] - In the first three quarters of 2024, the company achieved a net profit of 101 million yuan, reflecting a year-on-year increase of 22.16% [4][19] Product Sales Breakdown - In the first half of 2024, UV ink sales reached 303 million yuan, accounting for 51.51% of total revenue, with a year-on-year growth of 23.65% [20][21] - Offset ink sales were 161 million yuan, representing 27.37% of total revenue, with a growth of 4.67% [20][21] - Liquid ink sales were 97 million yuan, accounting for 16.48% of total revenue, showing a slight decline of 0.18% [20][21] Capacity Expansion and R&D Investment - The company is investing 204 million yuan in a project to produce 10,000 tonnes of liquid ink and 8,000 tonnes of functional materials, with a construction period of two years [15][21] - An additional investment of 136 million yuan is allocated for a new materials R&D center, focusing on functional printing varnish and water-based resin synthesis [15][21] Market Position and Competitive Advantage - The company is recognized for its leading production scale, technical level, and product quality in the domestic ink industry, enhancing its competitive edge [3][19] - The company is actively developing high-end environmentally friendly ink products, including vegetable oil-based inks and LED-UV low-energy curing inks, aligning with industry trends [16][22]