Henan Hengxing Science & Technology Co.Ltd(002132) (002132)
Event: fixed increase premium issuance and listing. The company’s non-public offering of shares was listed at an issue price of 4.40 yuan per share, with a premium of 3.77% compared with the issue base price of 4.24 yuan. 145 million shares were issued this time, with a total amount of 638 million yuan raised. After deducting relevant issuance expenses, the net amount raised was 625 million yuan. The raised funds will be used for the reconstruction and expansion project of prestressed steel strand, the reconstruction and expansion project of alloy coated (zinc) steel wire strand and the project of 200000 tons of prestressed steel strand per year.
The capacity of diamond line business expanded rapidly. The company’s existing diamond line production capacity has reached 1 million kilometers per month. 2022q1 is expected to achieve a production capacity of 1.6-1.8 million km per month, ranking in the forefront of the industry. The company’s diamond line products have entered the Tianjin Zhonghuan Semiconductor Co.Ltd(002129) supply chain system, and the orders are stable. “Reconstruction and expansion project of ultra-fine diamond wire with an annual output of 10 million km” and “ultra-fine diamond wire project with an annual output of 30 million km” are carried out as planned; The new “30 million km” project is expected to have a total investment of 676 million yuan and a construction period of 12 months. After the completion of the project, it is estimated that the annual new sales revenue will be 1.11 billion yuan and the annual profit and tax will be 503 million yuan. After the completion of the project, the annual production capacity of 46 million km diamond line can be realized.
Silicone production capacity is about to be put into operation: in 2018, the company invested 2.1 billion yuan in Inner Mongolia to build the “120000 T / a high-performance silicone polymer project”. The construction site of the project is located in Dalat Economic Development Zone, Dalat banner, city Inner Mongolia Eerduosi Resources Co.Ltd(600295) . The park is rich in water, electricity, steam, methanol and hydrochloric acid and has superior geographical location, with advantages in raw materials and transportation costs. The project is expected to be put into operation in the near future.
Investment suggestion: the operation of the company’s steel strand business is stable. The diamond line business is backed by the rise of photovoltaic price and volume. At present, it is in the stage of production expansion; The release of production capacity of silicone project is expected to help further improve the company’s performance. We expect that the company’s revenue from 2021 to 2023 will be RMB 3.01/75.2/9.13 billion, and the net profit attributable to the parent company will be RMB 162/7.59/1.025 billion, corresponding to pe4.6 billion 99/10.04/7.44。 Give “overweight” rating.
Risk tip: the PV installation demand is less than expected; The downstream demand of silicone is lower than expected; Macroeconomic fluctuations.
