Jingjin equipment ( Jingjin Environmental Protection Co.Ltd(603279) )
Key investment points
Event: the company announced that after preliminary accounting, the company realized an operating revenue of 710 million yuan from January to February 2022, with a year-on-year increase of about 42%.
The company is the global leader of filter press, benefiting from the rapid growth of downstream demand. The demand for traditional environmental protection applications of filter press has increased steadily, and the demand of emerging markets such as machine-made sand, new energy and new materials has continued to grow at a high speed. The application of filter press equipment in coal slime and tailings treatment, pigments and dyes, food additives, starch processing and other industries has been expanding, and the development of new industries has formed a new demand for filter press. As the global leader of filter press, the company has an annual sales volume of more than 10000 units and a market share of more than 40% in China. It has strong product competitiveness and will fully benefit from the demand growth of downstream industries.
The development of emerging markets has been smooth, and the proportion of income in new energy, new materials, sand and gravel wastewater and other fields has gradually increased. The filter press is widely used in lithium battery, photovoltaic, nuclear energy and other new energy fields: 1) in the lithium battery industry, it can be used in the filtration, washing and wastewater treatment of lithium ore, salt lake lithium extraction, cathode material, graphite cathode, PVDF resin material, lithium battery recovery and other processes; 2) In the photovoltaic industry, it is mainly used in the treatment process of monocrystalline silicon and polycrystalline silicon cutting fluid; 3) In the field of new materials, it has been applied to zirconia, graphene, magnetic materials, nano materials, polylactic acid and new polymer materials. The company has grasped the demand expansion of new energy, sand and gravel aggregate and other industries for filter presses, and the proportion of revenue has increased steadily. It is expected that the proportion of revenue of the company in new energy, new materials, sand and gravel aggregate and other industries will exceed 10% in 2021.
Vigorously develop the business of accessories and supporting equipment and create the second growth curve of the company. In 2020, the company invested 420 million yuan to build the “industrialization project of special high-performance filter materials for environmental protection”, which is expected to release about 300 million yuan of filter cloth production capacity in 2022; In 2021, 20000 sets of high-performance filtration system projects will be built. After all of them are completed, the annual operating revenue will be about 2.1 billion yuan and the net profit will be about 315 million yuan. At the same time, the company will make great contribution to the development of automatic thickener, thickener and filter press, and promote the sales of thickener and filter press. Focusing on the field of filter press, the company vigorously develops accessories and supporting equipment to create the second growth curve of the company.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 664 million, RMB 836 million and RMB 1028 million, with an average annual compound growth rate of 26.0%. The company has strong medium and long-term growth ability and high performance certainty. It is given 25 times PE in 2022 and the target price is 50.75 yuan, maintaining the “buy” rating.
Risk tips: macroeconomic fluctuation risk, the company’s new product development is less than expected, market competition intensifies, etc
