Henan Hengxing Science & Technology Co.Ltd(002132) (002132)
Company events
The trial production scheme of the company’s holding subsidiary Xingxing chemical’s “120000 tons / year high-performance silicone polymer project” was reviewed and approved by the expert group and officially entered the trial production stage.
The project site selection and layout are excellent to ensure the advantage of long-term production cost
The company laid out the organic silicon project in 18 years. The construction site of the project is located in Dalate Economic Development Zone, Dalate Banner, city Inner Mongolia Eerduosi Resources Co.Ltd(600295) . The park has outstanding location advantages, convenient transportation network and relatively complete industrial clusters, which helps the company build core cost advantages for silicone business. ① Superior geographical location, convenient transportation conditions and low logistics cost. The park is located in Dalat banner, in the hinterland of Hukou, Baotou and Hubei golden triangle, close to Baotou Shenzhou railway and Baotou East Expressway. Products and raw materials can be transported by car and train. ② The park is rich in resources, and raw materials with high quality and low price can be purchased nearby. There are many chemical enterprises in the park, supporting raw materials such as hydrochloric acid, methanol and low-pressure steam. The company can not only buy methanol lower than the mainland market price (about 400 yuan / ton cheaper), but also directly transport raw materials through pipelines in the park, obtain materials nearby and reduce short-distance transportation costs.
The silicone project was officially put into operation, and the release of production capacity supported the elasticity of performance growth
The organic silicon project of the company passed the review and officially entered the stage of commissioning and trial production. At present, the production line equipment is gradually opened and enters the feeding production link. It is expected that the first batch of products will be successfully delivered in January next year. The company plans to release 70-80% of the production capacity next year. According to the current market price, the profit per ton of the company’s silicone products is about 4000 yuan / ton. It is expected that the business will achieve a profit of at least 300 million yuan next year, which is expected to significantly increase the company’s performance.
Investment advice
With the release of the production capacity of the silicone project, the company has formed a dual main business development pattern focusing on metal products and new chemical materials, and its profitability is expected to improve rapidly. We expect the company to achieve an operating revenue of RMB 3.32/72.4/8.93 billion and a net profit attributable to the parent company of RMB 170 / 9.4/1.23 billion from 2021 to 2023. The current share price corresponding to PE is 45 / 8 / 6 times respectively, giving a “buy” rating.
Risk statement
The project construction is not as expected; The price of raw materials fluctuates, and the downstream demand is lower than expected
