Guangdong Huate Gas Co.Ltd(688268) (688268)
Event: on the evening of December 14, the company issued the announcement on the signing of daily business contracts by the joint venture company. According to the announcement, Foshan Huapu Gas Technology Co., Ltd. (hereinafter referred to as "Huapu technology") signed a 10-year "gas supply contract" with Guangdong Bangpu Cycle Technology Co., Ltd. (hereinafter referred to as "Bangpu cycle") on December 13 to supply oxygen and liquid oxygen. The contract amount is about 1.5 billion yuan (excluding tax), commercial gas supply is expected to start on December 31, 2022.
comment:
Sign a large order of RMB 1.5 billion to synchronously expand the scale of industrial gas business. Huapu technology is a joint venture company jointly invested and established by Guangdong Huate Gas Co.Ltd(688268) and Bangpu cycle in June 2021, with a registered capital of 70 million yuan. Guangdong Huate Gas Co.Ltd(688268) and Bangpu cycle contribute 51% and 49% respectively, but both parties have the same rights in the shareholders' meeting. Bangpu cycle, the counterparty of this contract, is a holding subsidiary of Contemporary Amperex Technology Co.Limited(300750) (holding 52.88%), which is based on the "directional cycle" of independent research and development Core technology to produce ternary precursors for the manufacture of battery cathode materials. The main business of Huapu technology is to produce oxygen, nitrogen, argon and related gas products through the construction of gas separation equipment. One of the main purposes is to meet the oxygen supply required for the production of ternary cathode materials of Bangpu circulating battery. On the other hand, it can meet the gas raw material demand of Guangdong Huate Gas Co.Ltd(688268) . In 2020, the company's industrial gas business accounted for about 21.4%, with a corresponding revenue of about 214 million yuan. The contract amount is up to 1.5 billion yuan. The signing of the contract will significantly expand the revenue scale of the company's industrial gas business, so as to realize the rapid expansion of ordinary industrial gas business while the company's special gas business is growing rapidly.
Invested 658 million yuan to build the southwest headquarters and expand the business radiation area. The company announced on December 10 that it had signed an investment invitation agreement with the people's Government of Yantan District, Zigong City, Sichuan Province, The company will bid for land in Yantan high tech park, Zigong City, Sichuan Province and invest in the construction of the company's southwest headquarters (a wholly-owned subsidiary), the total investment of the project is about 658 million yuan, of which the investment in fixed assets is about 608 million yuan. The construction period of the project is about 2 years. The construction of the southwest headquarters of the company is expected to expand the energy production scale of the company's relevant gas products on the one hand, and effectively expand the company's gas business based on the regional advantages of the southwest region on the other hand The radiation area of the Chinese market, so as to better respond to the specific needs of downstream customers, improve the downstream penetration of the company's gas products, and consolidate the company's leading position in the special gas industry.
Profit forecast, valuation and rating: the company has a long time span corresponding to the signing of this contract. We will not consider the performance increment of relevant products for 2023. We maintain the company's profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 144 million, RMB 192 million and RMB 248 million respectively, equivalent to EPS of RMB 120 million, RMB 160 million and RMB 207 million respectively. We continue to be optimistic about the business development prospect of the company as a leader in China's special gas industry and maintain the "overweight" rating of the company.
Risk warning: product introduction is not as expected, product R & D progress is not as expected, and contract performance risk.
