Deep ploughing into the industrial gas industry, the dual business of electronic grade silane gas + hydrogen drives the growth of the company. Since its establishment, silane technology has been deeply engaged in the industrial gas industry. At present, the main products are hydrogen (industrial / high-purity hydrogen) and electronic grade silane gas. The company’s hydrogen is mainly used in nylon industry, and its customers are mainly Shenma nylon chemical; Silane gas is mainly used in semiconductor, panel and photovoltaic industries. Its customers include TCL Huaxing, Longi Green Energy Technology Co.Ltd(601012) , Huike electronics, BOE, Shanghai Aiko Solar Energy Co.Ltd(600732) , Risen Energy Co.Ltd(300118) and a series of industry leading enterprises. The company achieved revenue of 511 million yuan / 369 million yuan in 2020 / 2021h1, with a year-on-year increase of 38.49% / 36.05% respectively; From 2020 to 2021h1, the net profit attributable to the parent company was 49.91 million yuan / 51.08 million yuan, with a year-on-year increase of 156.34% / 17.28% respectively. The gross profit margin of the company in 2020 / 2021h1 is 22.70% / 23.58% respectively. With the increase of the company’s production capacity, the gross profit margin tends to be stable. The company plans to publicly issue no more than 78.23 million RMB common shares, and plans to raise 600 million yuan for the technical transformation project of cold hydrogenation system of silane unit, 500 t / a semiconductor silicon material project and supplementary working capital.
Industrial gas is widely used in the downstream of the industry, and the demand in main fields is growing. Industrial gas is the basic raw material of modern industry and plays an important role in the national economy. The downstream fields include emerging industries such as semiconductor, liquid crystal panel, photovoltaic, new materials, new energy and high-end equipment manufacturing, as well as traditional industries such as metallurgy, chemical industry and machinery manufacturing, which play a strategic role in supporting the development of the national economy, Known as “the blood of industry”. Specifically, in terms of subdivided industries, the downstream industries of silane gas mainly include semiconductor, display panel, photovoltaic industry, etc., and emerging industries such as advanced ceramics and composite materials. Among them, the semiconductor, display panel and photovoltaic industry continued to grow under the support of national policies and strong demand. Hydrogen industry is widely used in petrochemical industry, electronic industry, metallurgical industry, food processing, float glass, aerospace and other aspects. At present, synthetic ammonia is still the main downstream in China. According to Zhuo Chuang information data, the demand for synthetic ammonia accounts for about 46% of the demand for hydrogen; In downstream applications, the hydrogen fuel cell industry has good prospects, but it is still in its infancy and the industry demand is still low. At present, the industry is still dominated by foreign enterprises. The four overseas gas giants account for 88% of China’s electronic special gas market. The proportion of Chinese enterprises is still low and still in the catch-up stage.
The growth rate of silane technology is faster than that of comparable companies, and the current scale is at a low level of comparable companies.
Silane technology is mainly engaged in the research, production and marketing of silane gas and hydrogen. There are no fully comparable listed companies. Some industrial gas companies are selected for comparison. Taking 2021h1 as an example, the asset scale of the company is significantly lower than Suzhou Jinhong Gas Co.Ltd(688106) , Hubei Heyuan Gas Co.Ltd(002971) , and close to Hunan Kaimeite Gases Co.Ltd(002549) and Guangdong Huate Gas Co.Ltd(688268) ; In terms of revenue and net profit, silane technology has achieved rapid growth in revenue and net profit scale through acquisition in recent years. At present, the revenue scale has exceeded Hunan Kaimeite Gases Co.Ltd(002549) , and the net profit scale has exceeded Hubei Heyuan Gas Co.Ltd(002971) .
Investment suggestion: the company is a Chinese industrial gas enterprise with competitive advantages in electronic grade silane gas and hydrogen. Its main customers include TCL Huaxing, Longi Green Energy Technology Co.Ltd(601012) , Huike electronics, BOE, Shanghai Aiko Solar Energy Co.Ltd(600732) , Risen Energy Co.Ltd(300118) and other industry leading enterprises, which are expected to benefit from the growth of semiconductor, photovoltaic, display panel and other downstream industries. The company announced that it has applied to the Beijing stock exchange and is currently in the acceptance stage. The issuing base price is 7.8 yuan / share, corresponding to 18 times of pe-ttm. It is recommended to pay attention.
Risk tips: increased industry competition, price fluctuation of raw materials and risk of industrial policy adjustment
