Zhongfu Shenying (688295)
(the special coverage report of new shares aims to conduct a simple research and sorting on the recently inquired listed companies)
Key investment points
A total of one company made an inquiry in this period. On March 21 (next Monday), Zhongfu Shenying, a listed company on the science and innovation board, will make an inquiry.
Zhongfu Shenying (688295): the company has entered the carbon fiber industry since 2006. It is a national high-tech enterprise specializing in carbon fiber R & D, production and sales. From 2019 to 2021, the company achieved operating revenue of 415 million yuan / 532 million yuan / 1173 million yuan respectively, yoy was 34.8% / 28.24% / 120.44%, and the compound annual growth rate of operating revenue in the three years was 56.2%; The net profit attributable to the parent company is 26 million yuan / 85 million yuan / 279 million yuan, and yoy is 206.83% / 225.92% / 227.02% in turn. The net profit attributable to the parent company has turned loss into profit since 2019. According to the company’s preliminary forecast, the net profit attributable to the parent company in 2022q1 increased by 106.93% to 132.8% year-on-year.
Investment highlights: 1. The company is one of the leaders in the carbon fiber industry, and its technology and industrialization process are in a leading position in China; At the same time, as an important strategic material for national economic development, carbon fiber will benefit from the gradual expansion of industrial application demand and the gradual promotion of import substitution. 1) In terms of technology leadership, the company took the lead in realizing the key technological breakthrough of dry jet wet spinning carbon fiber in China in 2013, and built China’s first 1000 ton dry jet wet spinning carbon fiber industrialization production line with independent intellectual property rights; Compared with the wet spinning adopted by most carbon fiber enterprises in China, the speed of dry wet spinning is 3 ~ 4 times that of wet spinning. At the same time, the fiber spun by dry jet wet spinning has good compactness and high bulk density, which can be made into high-performance carbon fiber. 2) In terms of leading industrialization, the company has systematically mastered the technologies of carbon fiber T300, T700, T800, M30, M35 kiloton, M40 and T1000 kiloton. In terms of the company’s carbon fiber output of 377721 tons in 2020, it accounts for 20.98% of China’s total carbon fiber output, ranking second in China’s carbon fiber output. 2. The company’s large-scale development has accelerated, and the new production capacity is being released rapidly. Under the background that China’s carbon fiber market is still in short supply, the output growth is expected to significantly promote the company’s performance. By the end of 2020, the company’s carbon fiber product capacity was only 3500 tons / year and 377721 tons in Jiangsu Lianyungang Port Co.Ltd(601008) base; In the first half of 2021, part of the project with an annual output of 10000 tons of high-performance carbon fiber and supporting precursor in Xining was put into operation, and the company’s new capacity was 2000 / T / A, reaching 5500 / T / A, with a capacity increase of 57%; Meanwhile, according to the company’s fund-raising and investment plan, in March 2022, the project with an annual output of 10000 tons in Xining will be completed, the remaining 8000 tons / capacity is expected to be put into operation gradually, and the company’s capacity will be expanded by about 145.5% again. According to the development plan released by the company on its website, the company expects to build a 20000 ton carbon fiber production base in Xining in 2025 and a 100000 ton carbon fiber production base in 2030. In the next few years, the company will continue to promote large-scale production capacity construction at a high speed.
Comparison of Listed Companies in the same industry: Zhongfu Shenying listed companies in the same industry include Weihai Guangwei Composites Co.Ltd(300699) , Sinofibers Technology Co.Ltd(300777) , Jilin Carbon Valley, Hengshen Co., Ltd; Among them, Jilin Carbon Valley is mainly engaged in precursor production, which is one of the front-end key processes of carbon fiber production; While Sinofibers Technology Co.Ltd(300777) , Weihai Guangwei Composites Co.Ltd(300699) focus more on the military industry, and the income includes carbon fiber and fabric; Hengshen technology ranks third in China’s carbon fiber output, second only to the company. Assuming the listing status of the industry after excluding the inactive Hengshen shares, the average revenue (the first three quarters) is about 1 billion, and the average pe-ttm (arithmetic average) is 64.6x. In comparison, the company’s revenue volume is basically the same as the industry average, and the gross profit margin is more equivalent to Weihai Guangwei Composites Co.Ltd(300699) and Jilin Carbon valley.
Risk tips: companies that have started the inquiry process may still be unable to be listed for special reasons, the company’s content is mainly based on the contents of the prospectus and other public materials, there is a risk that the selection of Listed Companies in the same industry is not accurate, there may be interpretation deviation in the selection of content data, and the risks of specific listed companies are displayed in the text, etc.
