Shenzhen Capchem Technology.Ltd(300037) (300037)
Event 1: on the evening of November 30, the company issued the announcement on investing in the construction of Chongqing Shenzhen Capchem Technology.Ltd(300037) lithium battery materials and semiconductor chemicals project. The announcement indicates that the company plans to establish a wholly-owned subsidiary Chongqing Shenzhen Capchem Technology.Ltd(300037) new materials Co., Ltd. (tentative name, hereinafter referred to as “Chongqing Shenzhen Capchem Technology.Ltd(300037) “) ）It will invest 784 million yuan in Chongqing Changshou economic and Technological Development Zone to build an annual output of 200000 tons of lithium-ion battery electrolyte and materials project, an annual output of 80000 tons of semiconductor chemicals project and supporting public works and auxiliary facilities. The project will be carried out in two phases, of which phase I will build a production capacity of 100000 tons of lithium-ion battery electrolyte and materials. The construction period of phase I project is about 26 months, and it is expected to be gradually put into operation in the first half of 2024.
Event 2: on the evening of November 30, the company issued the announcement on investment and construction of Zhuhai Shenzhen Capchem Technology.Ltd(300037) electronic chemical project. The announcement indicates that the company plans to establish a wholly-owned subsidiary Zhuhai Shenzhen Capchem Technology.Ltd(300037) new materials Co., Ltd. (tentative name, hereinafter referred to as “Zhuhai Shenzhen Capchem Technology.Ltd(300037) “) and take it as the main body to invest 1.2 billion yuan to build Zhuhai Shenzhen Capchem Technology.Ltd(300037) in the new materials Industrial Park of Zhuhai Economic and Technological Development Zone Electronic chemicals project. The project includes 105000 T / a lithium battery material production capacity, 130000 T / a semiconductor chemical production capacity, 11000 T / a capacitor chemical production capacity, electronic chemical material research pilot base and supporting utilities and auxiliary facilities. The construction period of phase I project is about 28 months, and it is expected to be gradually put into operation in the first half of 2024.
comment:
The expansion of production of the leading enterprises undertakes the strong demand in China, and the volume and price rise together is expected to increase the performance: the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles continues to exceed expectations, China Shipbuilding Industry Group Power Co.Ltd(600482) battery industry chain will benefit significantly. In the short term, the industry chain is still in a tight situation of supply and demand, the shipment of electrolyte continues to grow at a high speed, and the industry pattern is good. The increase of market orders for lithium battery related products of the company has driven the rapid improvement of production and sales of the company. At the same time, the company has complete supporting facilities for key raw materials such as upstream additives, lifsi and solvents of lithium battery electrolyte, with significant integrated cost advantages. It also benefits from the upstream planning layout and the rapid rise in the price of electrolyte products. Under the background of the synchronous increase in the price of raw materials, the profitability of the company’s lithium battery related products is still fully guaranteed. At present, the company has a capacity of battery chemicals of 93000 T / A and a capacity under construction of 175000 T / A. now it plans to have a capacity of lithium battery electrolyte and materials of 305000 T / A. the scale advantage can fully reduce the cost, the industry position is expected to be further improved, and the market share is expected to be continuously improved. Among the announced planning projects, after the Zhuhai project is completed and put into operation, it is expected to achieve an annual operating revenue of about 6 billion yuan and profit and tax of about 720 million yuan. The Chongqing project is expected to achieve an annual operating revenue of about 5 billion yuan and profit and tax of about 580 million yuan. The overall profitability of the project is high, and the certainty of performance growth is expected to be improved.
Step up the layout of semiconductor chemicals and grasp the pulse of the era of domestic substitution: semiconductor chemicals are a new field of key development of the company in recent years. The production capacity is gradually released, and the certification progress of downstream customers is accelerated. It is now in a period of rapid expansion. In the first half of 2021, the company’s semiconductor chemical business has achieved an operating revenue of 888 million yuan, with a year-on-year increase of 91.90%. The company has 41300 T / a semiconductor chemical capacity and 25000 T / a capacity under construction. This announcement plans a total capacity of 210000 T / A, with a strong momentum of expansion. The semiconductor chemical project planned by the company mainly produces chemicals such as hydrogen peroxide, ammonia, etching solution and stripping solution, which are widely used in semiconductor, flat panel display, Cecep Solar Energy Co.Ltd(000591) photovoltaic and other fields. China has entered the “14th five year plan” period. “Self reliance and self-improvement in science and technology” and “completing the short board of the industrial chain” are important development directions in China at present. In recent years, the domestic substitution process in the “neck” fields such as China’s panels and semiconductors has accelerated, driving the high demand for supporting materials such as upstream semiconductor chemicals, and the industry market space is large. The company firmly grasps the opportunity of the times and strictly controls the product quality. In the future, semiconductor chemicals are expected to become a new performance growth point of the company.
High quality overseas customers continue to make breakthroughs and the global strategic layout is smooth: in terms of capacity layout, the company’s Polish project is expected to be put into operation in Q2 2022. The company also announced in August 2021 that it plans to invest in the construction of Shenzhen Capchem Technology.Ltd(300037) in the Netherlands. The phase I project is expected to put in 50000 T / a electrolyte capacity and 100000 t / a carbonate solvent capacity. The multi-point layout of overseas production capacity is convenient to quickly respond to the needs of overseas customers and effectively stabilize the company’s global market position. In terms of downstream customers, the company has always been an important electrolyte supplier for LG Chemical, Murata, Samsung SDI, Panasonic and other overseas customers. In addition, in early September 2021, the company won the USD 175 million overseas large order of European northvolt AB company to accelerate the development of the European market; In early November 2021, it signed a supply contract for lithium-ion battery electrolyte with ultiumcells, LLC, realizing a breakthrough in the U.S. market. The continuous expansion of overseas markets has injected new vitality into the company and helped the company realize the differentiated layout with other electrolyte manufacturers, which is expected to further consolidate its market competitiveness.
Profit forecast, valuation and rating: the re expansion of lithium battery electrolyte and materials and semiconductor chemicals is expected to thicken the company’s future performance. Due to certain uncertainty in the production of the planned capacity, and the planned capacity is expected to be put into operation in 2024, which will not affect the company’s profit forecast from 2021 to 2023, we maintain the company’s profit forecast from 2021 to 2023. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 1.342/17.42/2.177 billion respectively, and the converted EPS will be RMB 3.27/4.24/5.30/share respectively, We still maintain the company’s “buy” rating.
Risk tip: contract performance risk, capacity construction risk, product price decline, raw material cost rise, and downstream demand is lower than expected.
