\u3000\u3 Shengda Resources Co.Ltd(000603) 916 Sobute New Materials Co.Ltd(603916) )
The actual controller has rich experience and distributes production capacity nationwide. Miao Changwen and Liu Jiaping, the actual controllers of the company, are academicians of the Chinese Academy of engineering. Jiangsu Shenzhen Institute Of Building Research Co.Ltd(300675) provides support in technology and products. The company has ranked first among the “top ten additives” for many years. The company speeds up the national production capacity layout and has four mother liquor production bases and 20 compounding bases. In 2020, the company’s production capacity of high-performance water reducing agent mother liquor will be 338000 tons and that of high-efficiency water reducing agent mother liquor will be 443000 tons.
The industry concentration has increased and the leading enterprises have benefited. In 2020, the sales volume of concrete admixtures in China was 16.94 million tons and the industry scale was 41.1 billion yuan, of which the sales volume of water reducing agent accounted for 66.7% and the industry scale was 27.4 billion yuan. Since 2016, with the tightening of environmental protection and safety policies, the industry concentration has increased significantly. In five years, the number of enterprises has decreased from 6000 to 1000, and CR3 and CR10 have increased by 8.99 and 4.53 percentage points. We are optimistic about the prospects of the water reducing agent industry. The beta of the industry is due to the steady growth policy, the increase of the proportion of machine-made sand and the increase of commercial mixing rate. The alpha of the industry is due to the expansion of leading production, category expansion and customer certification. The leading enterprises are expected to benefit.
Outstanding R & D and profitability. The company has strong R & D strength, and the R & D expense rate and the number of patents rank first in the industry. By acquiring the equity of the testing center and intervening in the testing business, the cooperation between the technology and customers of both parties can be realized. The company purchased ethylene oxide to produce polyether with outstanding profitability. In 2020, the gross profit per ton after deducting freight was 788 yuan and the profit margin was 37%. The net profit increased by 15-25% against the trend in 2021. The leading edge of the company’s functional products is prominent. The production capacity of 200000 tons of Daying project and the production of 370000 tons of Zhenjiang and 70000 tons of Jiangmen projects in the future are expected to increase the production capacity.
Investment suggestion and Valuation: it is estimated that the company’s EPS 1.5 from 2021 to 202328 / 1.57/1.91 yuan, corresponding to pe16 / 13 / 11 times. In view of the fact that China’s economy is in the stage of steady growth and there are similarities with China’s economic situation in 2020, the highest P / E ratio of the company in 2020 is taken as the valuation reference. Give Sobute New Materials Co.Ltd(603916) 202220 times the target price earnings ratio, the target price of 31.40 yuan in the next 6-12 months, and give a “buy” rating for the first time.
Risk factors: increased cost; Payment collection risk; Environmental protection and safety policy; The epidemic intensified.
