Zhejiang Zhongxin Fluoride Materials Co.Ltd(002915) (002915)
The company is a characteristic fluorine fine chemical industry chain layout enterprise. Since its establishment, the company has been focusing on pharmaceutical, pesticide and fluorine-containing intermediates. After listing in 2017, the raised funds were used to expand the types of intermediates and enter the field of bpef new materials. Since then, on the one hand, the company has expanded new material products from a single bpef to DFBP, tfmb and other products; On the other hand, it will extend the industrial chain upward, issue shares to acquire gaobao technology and its subsidiary Changxing fluorite in 2019, and increase the construction of gaobao technology fluorine fine chemicals expansion project in 2021. The company has become a characteristic fluorine fine chemical industry chain layout enterprise.
Two core advantages to build competitive barriers. First, the fluorine chemical industry chain has a high degree of integration. The company extends to upstream fluorite and hydrofluoric acid through the acquisition of gaobao technology. Gaobao technology has obvious cost advantages of anhydrous hydrofluoric acid. At the same time, it has planned to build 30000 tons of photovoltaic hydrofluoric acid to improve the added value of products. The company fills the vacancy in the industrial chain through the fluorine fine chemical expansion project. Among them, fluorobenzene, the main product, is the most basic aromatic fluoride raw material. Except for the self-use synthesis of DFBP, the rest are sold outside. In the future, it is also expected to extend other pharmaceutical and pesticide intermediates with the help of fluorobenzene, making profits or exceeding expectations. Second, the process technology is advanced and inherited. Each generation of key products of the company is born out of the core technology of the previous generation, and on this basis, it develops and cultivates new synthesis and engineering technologies to form an inherited and evolving process product cluster.
The business of medical and agricultural intermediates is expected to grow steadily. The pharmaceutical intermediates are mainly quinolones, and the increment is mainly the supply of Zhejiang Medicine Co.Ltd(600216) nanofloxacin cyclic acid. At present, pesticide intermediates are mainly fluorinated pyrethroid intermediates, with an increase of 500 tons of 2,6-difluorobenzamide project (used for benzoylurea insecticides and triazolopyrimidine sulfonamide herbicides). It is expected that the annual income will be increased by 270 million yuan and the net profit will be 40 million yuan.
There are many new material reserve products, opening the second growth curve. While maintaining the competitive advantage of pharmaceutical and pesticide intermediates, relying on the existing process technology, the company actively carries out the R & D of new materials such as display materials, engineering plastics and new energy chemicals, which is expected to open the second growth curve. The main products of the company’s new material business at this stage are bpef. The planned products under construction include DFBP, tfmb, supercapacitor electrolyte salt, etc., which will be gradually increased in the next 3-5 years. In addition, we believe that the company is expected to make a breakthrough in the new generation of fluorine-containing new energy chemicals.
Investment suggestion: we predict that the company’s net profit attributable to the parent company in 2021 / 22 / 23 will be RMB 183 / 277 / 389 million, eps0.5% 90 / 1.36/1.91 yuan, corresponding to the current price of pe34 36 / 22.69/16.18x. We are optimistic that the company will continue to expand to the field of new materials based on the profound technical accumulation of fluorine fine chemicals. In the next few years, photovoltaic grade hydrofluoric acid, bpef, DFBP and new energy chemicals will be gradually in large quantities. We give the company 20 times PE in 2023, and the target price is 38.1 yuan. For the first time, give a “buy” rating.
Risk warning: price fluctuation of fluorite and hydrofluoric acid; The capacity release of new materials was less than expected.
