\u3000\u3 Guocheng Mining Co.Ltd(000688) 106 Suzhou Jinhong Gas Co.Ltd(688106) )
Main points:
Deeply cultivate the industry for 20 years to create China’s private gas leader
The company started in Suzhou in 1999. After more than 20 years of development, it has become an environment-friendly and intensive gas comprehensive supplier specializing in gas R & D, production, sales and service integration solutions in China. Its products include more than 100 kinds of gases such as bulk gas, special gas and natural gas, which are widely used in electronic semiconductors, medical health, energy conservation and environmental protection, new materials, new energy Many downstream fields such as high-end equipment manufacturing. The company entered the capital market in 2020. At present, the ownership structure is stable and has many subsidiaries. It has outstanding R & D strength and regional advantages. It is expected that the operating revenue will continue to grow rapidly in the future.
The industrial gas market has a large and stable space, and the localization process of electronic gas has started
The global industrial gas market has expanded steadily, maintaining a growth rate of 2-2.5 times of GDP all year round, while China’s gas industry started late and entered a period of rapid development after 2000. Semiconductor field is one of the most important downstream applications of industrial gas. It has been highly monopolized by foreign investors for a long time, and the top four companies in the world occupy 91% of the market share. With the vigorous development of China’s semiconductor industry, the scale of electronic gas market has gradually expanded. From 2013 to 2020, the scale of China’s electronic special gas market increased from 6.48 billion yuan to 17.36 billion yuan, with a CAGR of 15.12%. The company has a layout in electronic bulk gas and electronic special gas. Electronic bulk gas has been cut into Semiconductor Manufacturing International Corporation(688981) and vehicle specification SiC industrial chain, and has been recognized by China’s leading semiconductor manufacturers. The barrier of electronic special gas industry is high. Chinese manufacturers have made breakthroughs in each sub circuit in recent years, and the localization rate of electronic special gas has gradually increased.
Adhere to the vertical and horizontal development strategy and build a leader in China’s gas industry
The company adheres to the development strategy of “vertical development and horizontal layout”, that is, vertically introduce talents, develop new types of gases and meet the needs of localization; Horizontal layout across the country, seize market share and form location cards. The company seizes the opportunities of “carbon neutralization” and “carbon peak”, and vigorously develops waste gas recovery businesses such as hydrogen energy and carbon dioxide recovery. In 2020, the company prospectively introduced helium business, broke foreign monopoly and created a new growth point of performance. The successful promotion of the company’s vertical and horizontal development strategy can consolidate its regional leading position and further establish its competitive advantage.
Investment advice
We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 262, 387 and 554 million yuan, corresponding to EPS of 0.54, 0.80 and 1.14 yuan. The corresponding P / E ratio of the current stock price is 42.50, 28.79 and 20.15 times. The company is given a “buy” rating for the first time.
Risk tips
The price fluctuation of upstream raw materials, the risk of horizontal merger and acquisition of gas companies, and the development of downstream semiconductor business are less than expected.
