Qingdao Guolin Environmental Technology Co.Ltd(300786) (300786)
The company is a leader in the ozone generator industry, and its core technology creates its super Competitiveness: the company specializes in ozone generation mechanism research, ozone equipment design and manufacturing, ozone application engineering scheme design and ozone system equipment installation, commissioning, operation and maintenance. It is a representative enterprise in China’s ozone industry. Its products are mainly large-scale ozone generators, Covering a full range of ozone generators and ozone system integration equipment, it has been widely used in municipal water treatment, industrial sewage treatment, flue gas denitration, fine chemical industry and other industries. The company takes continuous technological innovation as its core competitiveness. At present, the company has mastered a full set of core technologies of ozone system equipment, and has developed large ozone generators with single unit output of 3kg / h, 5kg / h, 10kg / h, 20kg / h, 50kg / h, 80kg / h and 120kg / h. From 2016 to 2020, the growth rate of the company’s performance was relatively stable. The revenue increased from 169 million yuan to 402 million yuan, with a CAGR of 24.2%, and the net profit attributable to the parent increased from 33 million yuan to 80 million yuan, with a CAGR of 25.2%.
The future performance of high-quality crystalline glyoxylic acid project invested by raising funds is expected: the total amount of funds raised by the company does not exceed 360 million yuan, It is used to invest in the company’s 25000 T / a high-quality crystalline glyoxylic acid project (phase I). Glyoxylic acid is an important pharmaceutical intermediate and organic synthesis intermediate, which is widely used in the fields of perfume, medicine, papermaking, paint, fine chemical industry, etc. China’s glyoxylic acid market is mainly low-end glyoxylic acid products, and there is no large-scale high-quality glyoxylic acid industrial production enterprise, which restricts the development of downstream market. According to the report of xinsijie Industrial Research Center According to the Qingdao Guolin Environmental Technology Co.Ltd(300786) prospectus, there are about 28000 tons of crystalline glyoxylic acid, 34000 tons of high-quality glyoxylic acid aqueous solution and 200000 tons of ordinary glyoxylic acid aqueous solution in the world every year, of which the Chinese market accounts for about 50% – 60% of the total global market. With the rapid development of China’s economy and the increasing demand of downstream industries for high-quality glyoxylic acid, the high-quality glyoxylic acid industry will usher in a new development period. The glyoxylic acid products produced by the company using the “ozone oxidation maleic anhydride method” have high quality, high purity, economic and easy availability of raw materials, almost no environmental pollution, crystal products and aqueous solutions, simple process, safety, few steps and easy large-scale production.
Semiconductor cleaning is a scarce target and is expected to achieve domestic substitution: according to different cleaning media, the current semiconductor cleaning technology can be divided into wet cleaning and dry cleaning. Wet cleaning is the mainstream cleaning technology route, accounting for more than 90% of the number of chip manufacturing cleaning steps. According to different process requirements, wet cleaning uses specific chemical solution and deionized water to clean the wafer surface without damage, so as to remove particles, organic matter, metal pollution, natural oxide layer, sacrificial layer, polishing residue and other substances in the wafer manufacturing process. Auxiliary technical means such as ultrasonic, heating and vacuum can be used at the same time. According to the data of Taiwan Institute of technology, in 2020, the global semiconductor cleaning equipment market scale was US $4.9 billion. Local equipment manufacturers mainly include Pnc Process Systems Co.Ltd(603690) and shengmei Shanghai, but the combined market share of the two is less than 10%. The ozone generator, the core device in China’s high-end semiconductor cleaning equipment, is basically blank, and the current market is dominated by MKS. According to the company’s announcement, Qingdao Guolin Environmental Technology Co.Ltd(300786) with its advantages in the field of ozone, the technology of high concentration ozone generator and high concentration ozone water equipment used in the semiconductor industry has made a breakthrough. After testing, the outlet concentration of ozone generator can reach 200-300mg / L and the concentration of ozone water can reach 80-150ppm. It can realize the accurate control of different concentrations of ozone water and meet the application needs of the semiconductor industry. The company’s semiconductor cleaning equipment is expected to become a domestic alternative and a scarce target in the market.
Investment suggestion: with the production of glyoxylic acid project and the domestic replacement of semiconductor cleaning equipment, the company’s performance will continue to grow. We expect that the company’s EPS from 2021 to 2023 will be RMB 0.99, RMB 2.05 and RMB 3.28 respectively, corresponding to PE of 39.6x, 19.2x and 12x, with a Buy-A rating for the first time, and a six-month target price of RMB 47.27.
Risk tip: whether the core technology can remain ahead and the risk of technology disclosure; The progress of glyoxylic acid project is less than expected; Profitability is lower than expected; The progress of semiconductor cleaning equipment was not as expected
(correction note: the investment proposal of the same title report issued on November 29, 2021 states “we expect the company to be 2020-2022”, and the year is incorrect, so it is changed to “we expect the company to be 2021-2023”)
