Novoray Corporation(688300) (688300)
Event description
On December 29, the company announced that it had received the notice of China Industrial Economic Federation of the Ministry of industry and information technology on printing and distributing the list of the Sixth Batch of manufacturing individual champions and the third batch of manufacturing individual champions (products) that passed the review, and the company was successfully selected into the Sixth Batch of national manufacturing individual champion demonstration enterprises.
Business analysis
Technical professionalism and R & D focus were recognized to verify the logical effectiveness of production expansion. According to the contents publicized by the Ministry of industry and information technology, The main business of the company, which was rated as the single champion, was identified as “electronic grade silica powder” (also known as silicon powder), and the company was also rated as the first batch of specialized and new “little giants” by the Ministry of industry and information technology The leading product of the enterprise. In fact, before financing and production expansion with the help of the listing platform, the company was not the largest and most high-end manufacturer in China in the field of silicon powder, but we did not find the company’s main Chinese competitors on the list, whether it was a single champion or specialized special new, This fully shows that the company’s technical professionalism and R & D focus on silicon powder in its main business are better than those of competitors, that is, the company has already met the technical and process requirements of high-end products, but it is difficult to quickly layout the market due to capacity constraints, This is also the reason for the rapid volume of high-end products after the company’s listing (after the listing expansion, the sales of high-end products spherical silicon increased by 50% and the sales of spherical aluminum increased by 70% respectively).
Low, medium and high-speed development markets have product layout, step by step, and the growth path is clear. At present, the company’s three main products include angular silicon, spherical silicon and spherical aluminum, Among them: 1) angular silicon is a low-speed development market (corresponding to the demand of medium and low-end CCL) and the market share has been at a high level. The company mainly adopts the profit optimization strategy and has no significant production expansion plan, which is the current Taurus business; 2) spherical silicon is a medium-speed development market (corresponding to the filler demand of high-frequency and high-speed CCL and semiconductor packaging EMC) however, the market share is low. The company actively carries out domestic substitution and plans a production expansion project of 15000 tons (with a corresponding increase of about 100%); 3) spherical aluminum is a high-speed development market (corresponding to the heat dissipation demand of new energy vehicles) and the market share is low, the emerging market pattern is uncertain, and the production capacity is the key to competition. Therefore, the company plans an 8000 ton production expansion project (corresponding to an increase of about 100%). In addition, the company is also actively deploying new materials (such as liquid slurry, nitride, air microspheres, etc.), the new product relay will open the layout boundary of the company, and the imagination space of the platform can be expected.
Investment advice
We expect the company’s net profit attributable to the parent company in 21-23 years to be 172 million yuan, 247 million yuan and 332 million yuan, with a corresponding valuation of 53x \ 37x \ 27x, and continue to give a “buy” rating.
Risk statement
The demand is less than expected; The production expansion progress is less than expected; The ban on restricted shares was lifted.
