Qingdao Gon Technology Co.Ltd(002768) (002768)
Event: the company plans to increase capital and shares of Zhejiang Yisu, which has acquired 99% equity, promote the construction of 1 million tons of polystyrene project and serve the strategic goal of vertical integration.
The 600000 ton polystyrene project of Zhejiang Yisu phase I is expected to be put into operation by the end of June 2022, which is expected to strengthen the vertical integration strength of the company’s new materials: according to the announcement, the company acquired 99% equity of Zhejiang Yisu with 297 million yuan on November 10, 2021, and signed the capital increase agreement with Qingdao Yisu and Diyi investment on January 3, 2022. The company plans to increase capital by 123 million yuan, After the capital increase, it will hold 70% of the equity of Zhejiang Yisu, and the registered capital of Zhejiang Yisu will increase from 300 million yuan to 600 million yuan. According to the announcement, the polystyrene project with an annual output of 1 million tons under construction in Zhejiang Yisu is the world’s largest polystyrene monomer production plant, which can achieve an annual output value of more than 12 billion yuan after reaching the production capacity. Polystyrene PS is one of the five general plastics. China has been in short supply for a long time, and its import volume has increased rapidly. Zhejiang Yisu project adopts the world’s most advanced polystyrene production process – continuous bulk polymerization, and introduces the equipment of world-class equipment manufacturers such as Shimadzu, Japan, to ensure the excellent product quality, which will effectively make up for the huge demand gap in China’s foreign market. After the capital increase, the polystyrene project with an annual output of 1 million tons is under construction in Zhejiang Yisu. The phase I unit will increase from the original annual output of 400000 tons to 600000 tons, including 400000 tons of general purpose polystyrene (GPPS) and 200000 tons of high impact polystyrene (HIPS). It is expected to be put into operation by the end of June 2022.
Layout PS and PP upstream of modified materials, open the integrated production mode of cost reduction and improve profit space: according to the announcement, the company increased capital and shares of Jiangsu Guoheng through its wholly-owned subsidiary Guoen chemical in October 2021, and undertook the layout of a polypropylene (PP) resin production line with an annual output of 200000 tons. The company’s strategic investment in Zhejiang Yisu and Jiangsu Guoheng extends vertically to the upstream polystyrene (GPPS, PS) and polypropylene (PP) resins of the modified materials to meet the needs of the development of the vertical integration strategy of Qingdao Gon Technology Co.Ltd(002768) new materials. According to the announcement, in the future, the company will complete the integrated production layout of modified materials such as household appliances, small household appliances, electric tools, automobiles and building decoration materials through polystyrene materials, and realize the cost reduction integrated production in the fields of light display materials, light diffusion plates, films, sheet materials and BOPS packaging materials; Through the production of polypropylene PP resin materials, it will effectively realize the integrated production of melt blown non-woven materials, degradable materials, pre coating, BOPP capacitor film and other materials, and continuously fiber polypropylene modified materials in the fields of automobile, household appliances, wind power and so on. It is expected to effectively reduce product costs and enhance market competitiveness.
Holding Baotou Dongbao Bio-Tech Co.Ltd(300239) , integrating the company’s resources and creating a dual industry development model of chemical and biomedical health products: according to the announcement, the company obtained 21.18% of the shares of Baotou Dongbao Bio-Tech Co.Ltd(300239) with RMB 728 million, became the controlling shareholder of Baotou Dongbao Bio-Tech Co.Ltd(300239) , and transferred 48% of the shares of Yiqing biology to Baotou Dongbao Bio-Tech Co.Ltd(300239) . Baotou Dongbao Bio-Tech Co.Ltd(300239) released the performance forecast for 2021. The net profit attributable to the parent company in 2021 is expected to be 30-40 million yuan, with a year-on-year increase of 62.60% – 116.80%, and the operation is better. Taking the acquisition of Baotou Dongbao Bio-Tech Co.Ltd(300239) as an opportunity, the company has formed a dual industry main body collaborative development model with Qingdao Gon Technology Co.Ltd(002768) chemical industry listed on the main board and Baotou Dongbao Bio-Tech Co.Ltd(300239) health medical beauty industry listed on the gem (gelatin and hollow capsules, collagenase egg white peptide, plasma substitute gelatin, double protein artificial meat, etc.).
Investment suggestion: it is estimated that the net profit of the company from 2021 to 2023 will be 710 million yuan, 830 million yuan and 880 million yuan respectively, corresponding to PE 9.9 billion yuan 9. 8.4 and 8 times, maintaining the Buy-A rating.
Risk warning: product demand is less than expected, raw material price fluctuation, etc.
