\u3000\u3 Shengda Resources Co.Ltd(000603) 026 Shandong Shida Shenghua Chemical Group Company Limite(603026) )
Event:
The company released the operating data from January to February 2022, realizing a total operating revenue of about 1.14 billion yuan, a year-on-year increase of about 13.7%; The net profit attributable to the parent company was about 310 million yuan, with a year-on-year increase of about 97.7%.
Investment summary:
The production capacity of Quanzhou has been successfully put into operation, and the spirit of the electrolyte landscape has been continuously fulfilled. The 120000 T / a vinyl carbonate unit of the 440000 T / a new energy materials project (phase I) invested and constructed by the company’s holding subsidiary has been put into operation smoothly, and battery grade vinyl carbonate products have been produced, and the other 100000 t / a dimethyl carbonate unit is still in trial production. The carbonate products in the first phase of the project cover 20000 t / a battery grade vinyl carbonate, 100000 t / a self use industrial grade vinyl carbonate, 20000 t battery grade dimethyl carbonate and 80000 T / a industrial grade dimethyl carbonate. From January to February 2022, the company’s new energy related products maintained full production, the prosperity of the products continued to be realized, and the net profit attributable to the parent company was about 310 million yuan, with a year-on-year increase of about 97.7%.
The vertical integrated layout of electrolyte accelerates the expansion of production capacity. The company is one of the few enterprises in the market that can provide ultrapure electrolytic solvents. It has the advantages of complete industrial chain and high-end product purification technology. The global market share is about 40%, accounting for about 70% of China’s export volume of electrolyte solvents. In the future, the company’s carbonate series products will extend vertically to electrolyte. It plans to invest in the construction of 300000 t / a electrolyte project, with a total investment of 1.6 billion yuan. It is expected to be completed and put into operation in February 2023, and an integrated production system will be formed at that time. Meanwhile, the company’s solvent capacity is in the stage of accelerated expansion. The next 100000 t / a methyl ethyl carbonate unit project is expected to be put into operation in December 2023, consolidating the company’s leading position in the field of carbonate solvent.
Horizontal layout of projects such as silicon carbon negative electrode, wet electronic chemicals and new energy materials gives new impetus to growth. The company has a certain accumulation of silicon carbon negative electrode technology. At present, the 1000 t / a silicon carbon negative electrode device is in the trial production stage and has entered the customer sample delivery test. In the future, the company plans to invest in the construction of 20000 t / a silicon-based negative electrode and 11000 T / a additive projects, with a construction cycle of 24 months. It is expected to be completed and put into operation in December 2023, with an estimated investment of 730 million yuan and 280 million yuan respectively. In addition, the company plans to invest 1.633 billion yuan to build 40000 t / a new energy material projects, including 20000 t / a positive lithium supplement project, 10000 t / a new conductive agent project and 10000 t / a fluorosolvent project. The construction period is 24 months. It is expected to be completed and put into operation in February 2024. With the construction and operation of relevant production capacity, it will further enrich the company’s product structure, improve profitability and comprehensive competitiveness, and inject new impetus into the company’s development.
Investment suggestion: considering that the prosperity of the company’s main products continues to support performance growth, and new investment and expansion projects help the company’s future growth. We estimate that the revenue from 2021 to 2023 will be 6.588 billion yuan, 7.744 billion yuan and 9.035 billion yuan respectively, the net profit attributable to the parent company will be 1.208 billion yuan, 1.521 billion yuan and 1.807 billion yuan respectively, the corresponding EPS will be 5.96, 7.51 and 8.91 yuan respectively, and the PE will be 25.03 times, 19.87 times and 16.73 times respectively. The company is rated as “buy”. Risk warning: the production of projects under construction is less than expected, and the product price falls.
