\u3000\u3000 Sino-Platinum Metals Co.Ltd(600459) (600459)
Sino-Platinum Metals Co.Ltd(600459) is a national high-tech enterprise integrating research, development, production and operation of new precious metal materials. The company has the advantages of integrating the precious metal industry chain from technological innovation of precious metal materials to production and manufacturing, and from business trade to waste recycling. Among them, the manufacturing of new precious metal materials, precious metal recycling and precious metal trade are the three core collaborative business segments of the company. The manufacturing of precious metals and new materials is the core business. In 2020, the revenue accounted for 45.53% and the gross profit accounted for 64.77%. Precursors, special functions and motor vehicle catalyst materials constitute the cornerstone of precious metal new material manufacturing business.
The company builds strong comparative advantages in multiple dimensions. As the only listed company in China that has a series of core technologies and a complete innovation system in the field of precious metal materials and integrates production, study and research, the company has obvious scale advantages and core technology advantages. China’s precious metal material manufacturing industry is in a growth period and has extremely high entry barriers. It is difficult for new enterprises to form effective competitive advantages in the short term. The company’s comparative advantages are reflected in: (1) the precious metal new material industry has received key national policy support, (2) the company has strong technical advantages, and it is difficult for new enterprises to achieve technical accumulation and breakthrough in the short term, (3) the precious metal new material industry has extremely high market barriers, but the company has strong brand influence, high expansibility and high viscosity customer groups, (4) The company has integrated scale effect and comparable competitive advantage.
The strong growth attribute of the company is expected to be self strengthening. The strong growth of the company is reflected in three aspects: precious metal precursor materials, precious metal catalyst materials and precious metal regeneration business. The expansion of the company’s business matches the development of the new energy industry under the dual carbon policy, which is expected to further strengthen the company’s own growth attribute. The production capacity of precious metal precursor materials of the company will gradually reach 300 tons / year (+ 275%) after 2022, the production capacity of automobile catalyst products of the company will rise to nearly 7 million pieces / year (+ 45%) by 2023, and the production capacity of platinum group metals of the company will reach 20 tons / year (+ 400%) by 2024, The company is expected to benefit from the expansion of precious metal new material market and the acceleration of domestic substitution.
Profit forecast and rating: we predict that the company’s revenue from 2021 to 2023 will be 35.073/42.187/51.703 billion yuan, with a year-on-year increase of 21.3% / 20.3% / 22.6%; The net profit attributable to the parent company was 651 / 806 / 1005 million yuan, with a year-on-year increase of 98.9% / 23.7% / 24.8%, and the corresponding EPS was 1.10/1.36/1.70 yuan respectively (according to the latest share capital 591 million shares). The company is the only target for manufacturing and recycling of new precious metal materials in a shares. Considering its scarcity and growth, the company is given a 30 times PE valuation in 2021, corresponding to the target price of 33 yuan. It is covered for the first time and given a “recommended” rating.
Risk tip: the price of precious metals fluctuates sharply, the production and sales of automobiles are less than expected, the release of production capacity is less than expected, and the market expansion scale of new precious metal materials is less than expected.
