\u3000\u3000 Shanghai Pret Composites Co.Ltd(002324) (002324)
Event:
On February 14, 2022, the company announced that it planned to restructure a new energy enterprise in cash and increase its capital in cash for the capacity improvement and business development of the target company; The source of funds is the self raised funds of listed companies, including self owned funds, M & A loans, etc. The target company is a new energy enterprise specializing in the R & D, production and sales of ternary lithium iron phosphate lithium-ion batteries and their systems. Its products are widely used in smart appliances, electric tools, communication, energy storage and other fields. The company has independent core intellectual property rights, rich new energy technology reserves and continuous R & D capabilities, and has more well-known customers all over the world.
Key investment points:
Reorganize new energy enterprises and enter the lithium-ion battery industry
The company plans to restructure a new energy enterprise in cash. The target company is a new energy enterprise specializing in the R & D, production and sales of ternary lithium iron phosphate lithium-ion batteries and their systems. Its products are widely used in smart appliances, electric tools, communications, energy storage and other fields. With China putting forward the goals of “carbon peaking” and “carbon neutralization”, and the United States releasing the “clean energy revolution and environment plan”, the global “double carbon” goal has reached a consensus, and the development trend of the whole society towards clean energy is becoming increasingly clear. With the profound change of energy consumption structure, the new energy and energy storage market will maintain rapid development, and the market and customer demand will grow day by day. Listed companies have a broad customer base in the field of high-end brand vehicles, and continue to deepen the market expansion and industrial layout in the fields of new energy vehicles and 5g new materials. This transaction will help to quickly improve the industrial layout of Listed Companies in the field of new energy, further support the capacity improvement of the target company through capital increase, promote the target company to grasp the industrial opportunities in the field of energy storage, promote the industrial synergy between listed companies and target companies, and promote the high-quality development of listed companies.
“Automobile lightweight” drives the development of modified plastics, and 5g leads the demand of LCP
Under the background of the rapid development of the scale of the new energy vehicle industry, driven by the trends of the automotive industry such as “automobile lightweight” and “plastic instead of steel”, coupled with the growth of the demand for high-performance and environmental friendly automotive materials and the acceleration of the domestic substitution process, there is still a large space for the development and improvement of China’s modified material industry. The company’s modified material products are mainly used in the automotive material industry. After years of technology accumulation and market development, the company provides services to many automobile manufacturers at home and abroad, including BMW, Mercedes Benz, GM, Ford, Chrysler, Geely, Byd Company Limited(002594) , Chery and other automobile enterprises. It has become one of the leading enterprises in China’s modified plastic industry.
With the implementation of the national strategy of “made in China 2025” and “Internet plus” and so on, with the popularization and application of new technologies such as 5G communication, Internet of things, artificial intelligence and new energy vehicles, the transformation and upgrading of medium and high-end electronic materials products are expected to accelerate. Meanwhile, the acceleration of the localization process of high-end materials will usher in the rapid development of the electronic new material industry. At present, the company has 3800 tons of LCP resin synthesis capacity, 1000 tons of fine denier LCP fiber production line capacity, 3000 tons of modified LCP injection molding material production capacity and 3 million square meters of multi specification LCP film automatic production line. It is the only LCP material supplier in China with the whole industrial chain technology and large-scale production capacity of resin synthesis, fiber spinning and film blow molding. The company attaches great importance to the future development trend of new electronic materials industry, especially the development opportunity of high-end communication materials under the background of 5g Internet communication technology. Shanghai Pret Composites Co.Ltd(002324) is building a full industrial chain covering LCP materials from upstream resin synthesis to LCP film and fiber and downstream FCCL, FPC and PCB applications.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company in 2021, 2022 and 2023 will be 23 million yuan, 152 million yuan and 205 million yuan respectively, and the corresponding PE will be 686.99, 102.10 and 76.06 times respectively. It will be covered for the first time and given a “buy” rating.
Risk tips: the price of raw materials fluctuates, the downstream demand is less than expected, the risk of intensified trade friction, the risk of LCP R & D is less than expected, and the risk of uncertainty in the implementation of restructuring and the specific progress of implementation.
