Investment Rating - The report assigns a rating of "Increase" for the company, indicating a potential upside of over 15% relative to the CSI 300 index [47]. Core Viewpoints - Hengxin Life (301501.SZ) is a leading manufacturer of biodegradable food service products in China, supplying well-known domestic and international companies such as Luckin Coffee and Amazon. The demand for the company's products is expected to grow due to the increasing needs of the downstream catering industry and environmental protection initiatives [4][9]. - The company achieved revenue and net profit of 1.425 billion and 214 million RMB respectively in 2023, with a compound annual growth rate (CAGR) of 40.79% and 63.34% for revenue and net profit from 2021 to 2023 [11][13]. - The average PE ratios for comparable companies in 2023, 2024, and 2025 are 37.86, 26.81, and 21.74 respectively, indicating a favorable valuation compared to industry peers [4][34]. Summary by Sections Company Overview - Hengxin Life is a leading manufacturer of biodegradable food service products, benefiting from the growing demand in the catering industry and environmental regulations. The company has established multiple production bases across China and has a diverse product line that includes PLA-coated paper cups and biodegradable utensils [9][30]. Business Analysis - The company's main revenue sources include paper and plastic food service products, with biodegradable products accounting for over 50% of total revenue. The revenue from biodegradable products has shown significant growth, driven by the increasing demand from coffee and tea beverage sectors [11][13]. - The company has maintained a stable gross margin around 28%, with a decreasing trend in expense ratios due to economies of scale [16][19]. Industry Development - The biodegradable materials industry is expanding due to environmental concerns and regulatory pressures to reduce plastic waste. The global production capacity for bioplastics is projected to grow, with PLA being a significant component of this market [10][24]. - The catering industry in China has shown robust growth, with the market size reaching 4.7 trillion RMB in 2019 and recovering strongly post-2020. The demand for biodegradable food service products is expected to rise as consumer preferences shift towards sustainable options [28][29]. Competitive Landscape - The industry currently has a low concentration, with many players in the market. However, the trend is shifting towards increased concentration as leading companies leverage their technological and production advantages to capture market share [29][30]. - Hengxin Life has established a strong position in the biodegradable food service product sector, recognized as one of the top ten companies in the biodegradable plastics industry in China [30]. IPO and Fundraising - The company plans to issue 25.5 million shares, raising approximately 828 million RMB to expand its production capacity for PLA biodegradable products and enhance operational efficiency [31][33].
恒鑫生活（301501）：国内可生物降解餐饮具领先制造商