Sinomag Technology Co.Ltd(300835) (300835)
Investment logic
Permanent magnet business: ferrite wet pressed magnetic tile is used for downstream micro and special motors. The company expands production and seizes market share.
High performance permanent ferrite wet pressed magnetic tile is the core component of downstream micro and special motor, which is widely used in automobile, home appliance and other industries. According to the calculation, the demand for ferrite permanent magnet for automobile is expected to be 450100 tons and that for household appliances is expected to be 218400 tons in 23 years, with an industry growth rate of about 5%. The global capacity of wet pressed magnetic tile is about 450000 tons, 75% of which is concentrated in China and 25% in Japan and South Korea. Less than 10 of China's more than 100 manufacturing enterprises have a production capacity of more than 10000 tons, and the industry concentration is low.
Since its listing, the company mainly produces high-performance permanent ferrite wet pressed magnetic tiles. After the raised investment project is put into operation, the company has an annual production capacity of 33000 tons. The company plans to add 10000 tons of production capacity every year from 22 years, and realize 60000 tons of production capacity by the end of 24 years, mainly relying on the transformation of the old line and the production of the new line. The gross profit margin of the company's wet pressed magnetic tile ranks in the forefront of the industry and has been maintained at about 35% - 40% in recent years.
Soft magnetic business: provide the largest demand increment in the field of new energy, and the company's integrated industrial chain layout.
Among soft magnetic materials, metal magnetic particle core is widely used in photovoltaic inverter, variable frequency air conditioner, new energy vehicle, charging pile and other fields. It is the best soft magnetic material at present. Ferrite soft magnetic / amorphous and nanocrystalline soft magnetic are mainly used in the field of wireless charging. It is expected that the annual growth of metal magnetic particle core will be more than 30%, and the demand will exceed 200000 tons in 25 years, with huge development space. China's suppliers of metal soft magnetic materials account for only 4% of magnetic material enterprises; There are more than 200 manufacturers of ferrite soft magnetic materials with scattered production capacity.
The company's soft magnetic project was officially started in 20 years, from powder preparation, The whole industrial chain of magnetic core products (metal magnetic powder core, ferrite powder core) and device products (inductors) has been promoted simultaneously. At present, the annual production capacity of ferrosilicon aluminum and ferrosilicon metal powder core is 2000 tons, and the annual production capacity of high-frequency magnetic devices (inductors) in phase I is 12 million. During the construction of phase II, the overall planned annual production capacity of inductors is 50 million and the planned annual production capacity of high-performance soft magnetic ferrite is 6000 tons.
Profit forecast & investment suggestions
It is estimated that the net profit attributable to the parent company in 21-23 years will be 136 million yuan, 199 million yuan and 289 million yuan respectively, EPS will be 192 yuan, 282 yuan and 409 yuan respectively, and PE will be 40 times, 27 times and 19 times respectively. The valuation adopts the segment PE method and refers to comparable companies in the same industry. The market value of permanent magnet business is RMB 6.9 billion, the market value of soft magnetic business is RMB 3.3 billion, the total market value is RMB 10.2 billion, the corresponding target price is RMB 144, and the "buy" rating is given for the first time.
Risk statement
Downstream demand fluctuation risk; New product development risk; Risk of loss of technical personnel, etc.
