\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
In recent thirty years, deep ploughing and aging resistant products have cast the lead in China’s polymer anti-aging additives. Founded in 1994, the company has been working in the anti aging industry for more than thirty years. During this period, the company solidly operated its main business, built personalized services with u-pack products, built a global sales logistics network, and established a huge global customer base with core competitiveness such as rapid response to customer needs within 72 hours, which laid a foundation for the company’s performance growth. The company attaches importance to R & D. since its establishment, the R & D investment has increased year by year, which has promoted the improvement of the company’s product types and performance. The company’s performance has been growing rapidly, and its overall profitability is relatively high. It is the leader in the field of anti aging additives in China.
Based on the main anti-aging additives business, expand production capacity and improve the market scale. Anti aging auxiliaries are chemical assistants which can improve the original properties of polymer materials and can give polymer materials anti-aging function. They mainly include two categories: antioxidants and light stabilizers. In recent years, the Chinese government has attached great importance to the healthy development of advanced polymer materials industry and promulgated a series of policies to promote the development of manufacturing industry based on new materials. At present, mainstream polymer products such as rubber and plastics in the downstream remain highly prosperous. At present, the company has formed the layout of six production bases in Tianjin, Zhongwei, Hengshui, Changshan, Zhuhai and Inner Mongolia, with 94900 T / a antioxidant additives capacity, 21700 T / a light stabilizer capacity and 16000 T / a u-pack capacity. At the same time, the company has large-scale under construction / planned capacity in the fields of light stabilizer, u-pack, water dispersible antioxidant, synthetic hydrotalcite and so on, Provide guarantee for the future growth of the company’s main business.
It is proposed to acquire Kangtai shares, cut into the field of lubricating oil additives and broaden the growth space of the company. The company plans to purchase 922109% equity of Jinzhou Kangtai lubricating oil additives Co., Ltd. by issuing shares and paying cash to cut into the field of lubricating oil additives. Although the overall scale of the global market for lubricating oil additives tends to be stable, due to the sharp increase in the number of motor vehicles and the rapid development of heavy industrial machinery, China’s lubricating oil additives market has grown rapidly. At present, it has become the second largest market in the world after North America. Kangtai Co., Ltd. is one of the leading enterprises in China’s lubricating oil additive industry. Taking providing “lubricating application solutions” as the technical service mode, Kangtai Co., Ltd. is an enterprise with the largest operation scale and the strongest technical strength in China’s lubricating oil additive industry. The merger is expected to take advantage of the industry leading advantages of Kangtai shares to help the company enter the lubricant additive market and open the performance ceiling. In addition, the company further plans to have biomedical business. The company and Suzhou Jima gene Co., Ltd. jointly funded the establishment of Tianjin oref biomedical Co., Ltd., which is mainly engaged in nucleic acid drug monomer business. The company also cooperated with Tianjin University in the research and development of polyglutamic acid and other medical and American products to provide the company with new growth momentum.
Profit forecast, valuation and rating: we do not consider the performance increment brought by the company’s acquisition of Kangtai shares, but still maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company during 20222024 will be 526 million yuan, 676 million yuan and 784 million yuan respectively, and the converted EPS will be 257, 3.30 and 3.83 yuan / share respectively. We maintain the company’s “buy” rating.
Risk tip: asset restructuring risk, capacity construction risk, raw material price fluctuation, and downstream demand is less than expected.
