Luoyang Jalon Micro-Nano New Materials Co.Ltd(688357) (688357)
event
On January 4, the company released the performance forecast for 2021. In 2021, the company realized a net profit attributable to the parent company of 275-290 million yuan, with a year-on-year increase of 115.9% – 127.7%. In the fourth quarter of 2021, the company realized a net profit attributable to the parent company of 70-85 million yuan, and the performance was in line with expectations.
Business analysis
New production capacity climbed and the company’s sales volume gradually increased. From the supply side, 4500 tons of oxygen making molecular sieve will be put into operation in May 2020. On January 9, 2021, the company’s 9000 ton high-efficiency hydrogen and oxygen production formed molecular sieve project entered the production commissioning stage. After the second half of the year, the production capacity was gradually released and the product structure was actively optimized. In the third quarter of 2021, the 12000 ton molecular sieve raw powder project of phase III of the adsorption material industrial park was successively put into operation. In November 2021, with the 12000 ton formed molecular sieve put into operation in Thailand, the company’s revenue and performance continued to rise. The company’s existing capacity of molecular sieve raw powder and formed molecular sieve is 43000 T / A and 41000 T / a respectively.
Focus on the fields of energy, chemical industry and environmental protection, and accelerate the layout of high value-added catalytic molecular sieves. The company has expanded new catalyst molecular sieve products such as coal chemical industry and national VI diesel vehicle exhaust treatment. After the implementation of national VI standard, there is large import substitution space, and the added value of catalyst molecular sieve is higher. The company plans to invest 267 million yuan in the “expansion project of adsorption material industrial park”, and plans to raise 194 million yuan, including 500 tons of molecular sieves for automobile exhaust catalysis and 1000 tons of molecular sieves for flue desulfurization and denitration in the field of environmental protection; In the field of energy and chemical catalysis, 7100 tons of various chemical catalytic molecular sieves are built; At present, the project has been filed and the construction cycle is expected to be 18 months. We believe that with the production of catalytic molecular sieves, the company will gradually open a new growth curve.
Profit forecast and investment suggestions
We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 286, 391 and 540 million respectively, EPS will be RMB 494, 6.75 and 9.33 respectively, and the corresponding PE will be 34.7x, 25.4x and 18.4x respectively. Maintain the “buy” rating.
Risk statement
The construction progress of adsorption molecular sieve production capacity is less than expected; The R & D Progress of catalytic molecular sieves is less than expected; The sales volume of medical care molecular sieve was lower than expected; Exchange rate fluctuation
