Jilin Chemical Fibre Co.Ltd(000420) (000420)
Event overview
In November 2021, the company issued a non-public offering plan. The company plans to raise no more than 1.2 billion yuan, mainly for the construction of 12000 tons of carbon fiber composites.
Analysis and judgment:
The main business remains stable and viscose filament is the world leader
For a long time, the company's main business is viscose filament. At present, it has a production capacity of 80000 tons / year, accounting for about one third of the world. In the future, it will expand the production of 15000 tons of differentiated filament, which will continue to consolidate the advantages of traditional business. Meanwhile, in recent years, the company has increased its layout in viscose staple fiber. At present, the actual production capacity of viscose staple fiber has reached 120000 tons / year, making up for the company's lack of viscose fiber. It is expected to form synergy with the sales of viscose filament in the future.
Layout carbon fiber and embrace the era of domestic new materials
The company has entered the carbon fiber and carbon filament industry through kemec chemical (holding 100%) and Jilin Baojing (holding 49%). At present, kemec chemical focuses on 1K and 3K small tow capacity, with a capacity of 600 tons / year, and another new line is under construction; Jilin Baojing has an existing capacity of 8000 tons of carbon fiber, and plans to expand its production to 12000 tons / year during the 14th five year plan; in addition, Jilin Chemical Fibre Co.Ltd(000420) Guoxing carbon fiber, the holding company of the group, has a carbon fiber production capacity of 10000 tons / year and plans to expand to 15000 tons / year in the future. In the future, Jilin Chemical Fibre Co.Ltd(000420) is expected to join hands with Jilin Carbon Valley and Zhejiang Jinggong Science & Technology Co.Ltd(002006) to build an integrated domestic carbon fiber base of "equipment precursor carbon filament composite".
Develop carbon fiber composites and grasp the new energy industry β
The company announced that it plans to raise no more than 1.2 billion yuan through non-public offering, mainly for the construction of 12000 tons of carbon fiber pull substrate composites. In the future, the downstream of carbon fiber pull substrate composites will mainly grow into wind turbine blades and hydrogen cylinders. With the large-scale of wind turbines and the rapid development of hydrogen energy vehicles, the demand for civil carbon fiber composites is expected to enter a period of rapid growth.
Investment advice
We estimate that the company's revenue from 2021 to 2023 will be RMB 3.238/37.68/5.895 billion respectively, the net profit attributable to the parent company will be RMB 0.42/1.46/459 billion respectively, and the EPS will be RMB 0.02/0.07/0.23 respectively, corresponding to the closing price of RMB 5.29 on December 24, 2021, and the PE will be 247 / 71 / 23 times respectively. In the future, the company's viscose filament and staple fiber will maintain steady growth. Carbon fiber carbon filament and carbon fiber composite are expected to contribute to the company's performance from 2022. During the 14th Five Year Plan period, we are optimistic about the company's future growth, cover it for the first time, and give a "overweight" rating.
Risk statement
Risks of delayed production of carbon fiber, lower demand for viscose filament / staple fiber, lower installed capacity of wind power industry and lower development of hydrogen energy.
