\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 84 Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) )
Key investment points
Event: the company announced that its holding subsidiary polymetrix Ag recently signed a food grade polyester (PET) bottle chip SSP project contract with Jiangsu Xingye plasticization Co., Ltd., Chongqing wankai New Material Technology Co., Ltd. and Fujian Baihong polyfiber Technology Industry Co., Ltd., with a cumulative amount of about 260 million yuan, accounting for 30% of the company’s audited operating revenue in 2020.
Food grade polyester bottle chip SSP project orders came one after another, highlighting its advantageous position. 1) Industrial plasticization SSP project: the total contract amount is 156 million yuan. This contract is the second phase cooperation between ploymetrix and industrial plasticization food grade polyester bottle chip SSP production line project. Previously, phase I SSP project was signed in 2021, with a total amount of 165 million yuan. Industrial plasticization is subordinate to Jiangsu Sanfame Polyester Material Co.Ltd(600370) , and its business scope covers investment, hotel and international trade. 2) Chongqing wankai SSP project: the total contract amount is 51.95 million yuan. The company undertook Chongqing wankai food grade polyester SSP project in 2020, with a contract amount of 51.88 million yuan. Chongqing wankai is subordinate to Zhejiang Zhengkai group. Zhejiang wankai has completed and put into operation phase III bottle grade PET chip project, with a total capacity of 1.2 million tons and an annual output value of 13 billion yuan. 3) Baihong poly fiber SSP project: the total contract amount is 52.09 million yuan. Baihong poly fiber belongs to Fujian Baihong group. With an annual design capacity of 3 million tons, the group is the largest manufacturer of polyester fiber and polyester film in South China. The above customers have strong strength and strong performance ability. The company has global leading technical advantages in the field of food grade PET bottle chip ssp. The continuous implementation of food grade PET bottle chip SSP project further demonstrates the leading position of the company.
Food grade SSP process solution is a leading service provider and has been certified as a key customer. The per capita consumption of China’s bottled water industry is still 2-3 times higher than that of developed countries. The consumption upgrading will drive the development of bottled natural mineral water industry, and then promote the upgrading and volume of food packaging industry. The food grade SSP process solution provided by polymetrix, the holding subsidiary of the company, has the advantages of accurate and stable viscosity, low residual Acetaldehyde / dust / oligomer and the optimized process required for bottle broken injection molding. It has a high market share in the field of primary polyester (vpet) chips and has obtained the food grade packaging material safety qualification certification of world-class food and beverage enterprises such as Coca Cola, Nestle and Danone.
The policy drives the rapid opening of the recycled food grade pet market, which is expected to replicate the advantages of native polyester to the recycling field. The minimum content standard of recycled PET ensures the rigid demand. California of the United States stipulates that the content of recycled plastic in PET bottles will be 15% from 2022. The European Union specifies that the proportion of recycled plastic in PET containers will not be less than 25% by 2025 and 30% by 2030. Major enterprises make voluntary commitments. The company has a complete “bottle to bottle” regeneration solution, which truly realizes the closed-loop cycle of polyester reuse at the same level, and is expected to quickly replicate the original advantages in the field of recycled PET. In January, the company announced that it had signed two food grade recycled RPET project contracts with overseas customers, with a total amount of about 262 million yuan, confirming the market demand and the company’s core advantages.
Profit forecast and investment rating: we maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 185 million yuan, 249 million yuan and 320 million yuan respectively, corresponding to EPS of 0.58 yuan, 0.78 yuan and 1.00 yuan, and PE of 32x, 24x and 19x. Considering the company’s leading advantages in the field of high-end polyamide, recycled polyester and industrial AI integrated application technology, benefiting from China’s “double carbon” and global ESG policies, the company has sufficient orders and large industry space, and maintains the “buy” rating.
Risk tip: orders are not as expected, R & D risks, and industry competition intensifies
