\u3000\u3000 Asian Star Anchor Chain Co.Ltd.Jiangsu(601890) (601890)
The world’s leading anchor chain mooring chain, marine engineering, floating offshore wind power and mining chain
1) the company is the largest anchor chain enterprise in the world. In 2017, the global market share of marine anchor chain exceeded 70%. The compound growth rate of revenue in recent three years is 3%, and the net profit attributable to the parent company fluctuates greatly; In the first three quarters of 2021, benefiting from the recovery of the global offshore market, the revenue / net profit attributable to the parent company increased by 20% / 44% year-on-year, with an upward trend.
2) the two traditional businesses of marine anchor chain and marine platform mooring chain are facing the upward cycle. The emerging business of floating offshore wind power opens up growth space, and the import substitution of mining chain is expected to create a ” Asian Star Anchor Chain Co.Ltd.Jiangsu(601890) “.
Marine Engineering: the marine industry is booming, and the marine engineering platform benefits from the recovery of oil price
1) ship anchor chain: the cycle of ship industry is affected by many factors, such as macro-economy, marine trade volume / ship life / environmental protection requirements. Under the background of global transport capacity shortage caused by the epidemic, the number of new orders received by global shipbuilding in 2021 was + 117% year-on-year and the number of hand-held orders was + 27% year-on-year. With the continuous demand for special ships, the upward cycle of the industry is expected to accelerate. The company will benefit from the upward boom of the industry by taking advantage of its high market share. Ships are not only the field of civil ships, but also the prosperity of special ships continues.
2) offshore mooring chain: the company’s mooring chain is used for the new supporting of offshore oil and gas platforms and the replacement of old platforms. The global oil price has reached a seven-year high. The prosperity of offshore oil and gas exploration and development is expected to recover. The company will benefit from the increase in the utilization of existing drilling platforms and the strengthening of offshore oil and gas investment willingness.
Floating offshore wind power: the value of mooring chain of single fan is large; The company occupies a leading position and opens up room for growth
1) under the background of “double carbon”, offshore wind power is developing rapidly. 80% of Shanghai’s wind resources are located in the deep and far sea, and floating wind power is the general trend. The World Wind Energy Council estimates that by 2030, the cumulative installed capacity of global floating wind power will be 16GW, with a compound annual growth rate of 80%; The corresponding mooring chain market space totals 33 billion, including 5.7 billion from 2021 to 2026.
2) the company has strong mooring chain technology strength and won the bid for many floating wind power projects such as Guangdong haizhuang and CNOOC Rongfeng. Typical case: the contract amount of mooring chain of 6.2mw wind turbine platform is about 23 million, with broad growth space in the future.
Mining chain: with an annual average of nearly 2 billion, the market has great domestic substitution space, and it is expected to rebuild a Asian Star Anchor Chain Co.Ltd.Jiangsu(601890) mining chain with strong consumable attributes. At present, the annual average market space of nearly 2 billion is mainly occupied by tiller company of Germany. The company has won many Chinese mining chain orders such as national energy and China Shenhua Energy Company Limited(601088) , and the subsequent market share will increase rapidly.
Asian Star Anchor Chain Co.Ltd.Jiangsu(601890) : it is estimated that the compound growth rate of the net profit attributable to the parent company in the next three years is about 48%. It is rated as “buy”. It is estimated that the net profit attributable to the parent company from 2021 to 2023 is 120 / 180 / 280 million yuan, a year-on-year increase of 42% / 49% / 53%, EPS is 0.13/0.19/0.29 yuan, PE is 67 / 45 / 29 times, and the PE valuation center of the company in recent 10 years is 69 times. With reference to the historical valuation level, it is covered for the first time and given a “buy” rating.
Risk tips: 1) the boom recovery trend of the shipbuilding industry is less than expected; 2) The industrialization process of floating wind power is not as expected; 3) The development progress of mining chain market is less than expected.
