Jiaxian Co., Ltd. (430489)
Plastic environmental protection heat stabilizer is a leading enterprise with rapid performance growth. Jiaxian Co., Ltd. focuses on the R & D, production and sales of PVC environmental protection heat stabilizer additives, which are finally applied to the field of PVC products, such as PVC profiles, PVC pipes and fittings, wires and cables, injection molding products, food packaging, medical products, toys, etc. In the first three quarters of the year, the company realized an operating revenue of 331 million yuan, a year-on-year increase of 237.43%; The net profit attributable to the parent company was 42.56 million yuan, a year-on-year increase of 71.90%; 21q3 achieved an operating revenue of 135 million yuan in a single quarter, a year-on-year increase of 370.48%; The net profit attributable to the parent company was 22.16 million yuan, a year-on-year increase of 227.25%.
It is the leader of subdivided track, the main drafting unit of industry standards and the leading registration of DBM products in EU REACH regulations, so as to stabilize customer resources and build a company moat. The main manufacturers of DBM and SBM in China include Jiaxian Co., Ltd., Nantong Defa, Xinxian water source, Jiangxi Xinier, etc. the business of listed companies is closer to Gch Technology Co.Ltd(688625) . At present, the company’s DBM and SBM production capacity is 6000 tons, accounting for about 35% of the production capacity. It is a leading enterprise in the segment track. As a key high-tech enterprise in the national Torch Program, the company has the certification of “Anhui recognized enterprise technology center”, Anhui engineering technology research center and “postdoctoral scientific research workstation”. In addition, the company is also the main drafting unit of industrial standards of dibenzoyl methane and hard ester acyl benzoyl methane in China’s chemical industry, And took the lead in completing the leading registration of DBM products in EU REACH regulations. After years of development, relying on its advantages in technical level, customer resources, brand and quality management, the company has established a relatively stable cooperative relationship with international chemical enterprises such as baerlochergroup and ADK Co., Ltd.
Under the background of stricter environmental protection in various countries, lead-free heat stabilizers have a large space. The company’s main products are stearate heat stabilizers in PVC heat stabilizers. According to the statistics of China Plastics Industry Yearbook over the years, heat stabilizer is the second largest variety used in PVC additives. At present, the main heat stabilizers are lead salts, stearates Composite heat stabilizers (some containing lead), organotin and other heat stabilizers, of which lead salts account for about 34%, stearates account for about 21%, and composite stabilizers account for about 28% (some contain lead), organic tin accounts for about 7.5% and others account for about 9.5%. At present, lead salt heat stabilizers account for the largest proportion in the consumption structure of various heat stabilizers in China. At present, with the tightening of environmental protection requirements in various countries, heat stabilizers are developing towards lead-free and environmental protection. Stearate is expected to replace lead salt heat stabilizers, and the company’s subdivided industries will follow It has large growth space.
With the steady progress of capacity release in the new plant and the expansion of subsidiaries, the performance is still relatively flexible. The company’s early “delisting into the park” project has been steadily promoted, and the current production capacity of the new plant is in the stage of steady growth. In 2021, with the release of the capacity of the new plant, the company’s performance ushered in rapid growth. According to the calculation of the three quarterly reports disclosed by the company in the early stage, the company has released more than half of the capacity of the new plant, and there is still room for growth with the further release of capacity. In addition, the company announced in November 2021 that the 35000 T / a stearate production line of the holding subsidiary safeng new material has been completed, and the company’s early stearate production capacity is 30000 T / A. with the release of the production capacity of the new production line, this part of the business is expected to more than double the growth. On the whole, the company’s performance is flexible.
Investment suggestion: Jiaxian Co., Ltd. is China’s PVC thermal stability additive β- Dione products are the leader of the sub circuit, accounting for about 35% of the production capacity, and have strong scale advantages. It is expected to fully benefit from the substitution trend of lead-free heat stabilizer to lead-containing heat stabilizer under the background of stricter environmental protection. We expect that the company’s revenue from 2021 to 2023 will be RMB 505 million, RMB 636 million and RMB 798 million respectively, with growth rates of 250.2%, 25.9% and 25.4% respectively, and the net profit attributable to the parent company will be RMB 59.77 million, RMB 70.37 million and RMB 85.65 million respectively, with growth rates of 117.4%, 17.7% and 21.7% respectively. The investment rating of Buy-A is covered for the first time, and the six-month target price is 16.01 yuan.
Risk tip: the project capacity release is less than expected, the industry competition is intensified, the price of raw materials fluctuates sharply, and the assumptions are less than expected
