Do-Fluoride New Materials Co.Ltd(002407) (002407)
The leading position of chemical industry is stable, and the layout of new materials has a strong momentum. The company has been deeply engaged in the fluorine chemical industry for more than 20 years, mainly engaged in the R & D, production and sales of high-performance inorganic fluoride, electronic chemicals, lithium-ion batteries and materials. At present, the company has an anhydrous hydrofluoric acid production capacity of 200000 tons / year and an aluminum fluoride production capacity of 330000 tons / year. In recent years, with the advantages of advanced fluorine chemical technology and fluorine resources, the company’s focus has been continuously inclined to the field of new materials, and new materials have jumped to be the main source of profit. In the first half of 2021, the revenue of new materials sector has accounted for 47% of the total revenue.
Greatly expand the production of lithium hexafluorophosphate and new lithium salts, with high performance and strong growth certainty. At this stage, the high prosperity of the new energy vehicle industry drives the high demand for lithium hexafluorophosphate. In the short term, the mismatch between supply and demand will continue, and the price is in an upward cycle. The long-term supply and demand of lithium hexafluorophosphate tends to ease, and the profit differentiation of manufacturers will focus more on the cost side. The company can obtain excess returns by virtue of integration advantages and advanced technology. The company now has a capacity of 15000 T / a lithium hexafluorophosphate. Previously, it was announced that it plans to build a 100000 t / a lithium hexafluorophosphate project in three phases, which is expected to be completed by the end of 2025. 3 / 4 / 35000 tons will be completed and put into operation in 2022, 23 and 24 respectively. The layout of the company’s new lithium salt is at the forefront of the industry. It now has a capacity of 1600 tons / year of lifsi, and plans a capacity of 40000 tons of lifsi and 10000 tons of lithium difluorophosphate, which is expected to take the lead in opening up growth space.
Strengthen the layout of electronic chemicals and march into fine fluorine chemical industry. The company is the first enterprise in China to break through the production technology of upsss hydrofluoric acid and have relevant production lines. High technical barriers are the company’s significant moat. The localization of downstream wafers and LCD panels has accelerated, greatly boosting the demand for electronic chemicals, and the industry has broad prospects. At present, the company has an annual production capacity of 50000 T / a electronic hydrofluoric acid and 2000 t / a electronic silane. In addition, 30000 T / a semiconductor hydrofluoric acid, 2000 t / a electronic silane, 12000 T / a electronic ammonia, 12000 T / a electronic nitric acid and 6000 T / a electronic BOE are under construction and are expected to be completed and put into operation in 2023, Electronic chemicals represented by electronic grade hydrofluoric acid will become another major performance growth engine of the company.
Profit forecast, valuation and rating: lithium hexafluorophosphate continues to boom, the company’s cost advantage is becoming more and more obvious, and the profitability will be greatly enhanced by the signing of the company’s sales contract and capacity expansion. The company is looking forward to the layout of new lithium salts to open up future growth space. The company also accelerated the layout of electronic chemicals led by electronic grade hydrofluoric acid, made steady progress in the superimposed aluminum fluoride business, and continued to improve in the future. 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 1.064/1722/2250 billion respectively, and the corresponding EPS will be RMB 1.39/2.25/2.94/share respectively. Through calculation, the valuation range of the company’s share price is 73.53 ~ 74.25 yuan. We give the company about 33 times PE in 2022, corresponding to the target price of 74.25 yuan, maintaining the “buy” rating.
Risk tips: new project construction risk, price fluctuation risk of main products, lower than expected global power battery demand risk, contract performance risk.
