\u3000\u3000 Levima Advanced Materials Corporation(003022) (003022)
Events
Levima Advanced Materials Corporation(003022) released the performance forecast. It is expected to realize the net profit attributable to the parent company of RMB 1.08-1.14 billion in 2021, with a year-on-year increase of 69-78%.
2021q4 product and raw material prices rise simultaneously
According to the company’s performance forecast, the net profit attributable to the parent company in 2021q4 was 260-320 million yuan, with a year-on-year increase of 18-46% and a month-on-month increase of – 8-13%. The price of 2021q4eva rose rapidly and reached a high point in mid October. The market price of photovoltaic EVA exceeded 30000 yuan / ton, and then the price fell. The average market price of 2021q4 increased by about 25% month on month compared with Q3. The price of coal, the main raw material, rose first and then fell in 2021q4, and the average price still rose significantly. At the same time, the price of vinyl acetate, the raw material, rose sharply. The high point appeared in early December, and then the price continued to fall. In 2021, the company completed the merger and acquisition of Lianhong chemical, a methanol raw material supplier, and the integration synergy between the two sides gradually appeared, further strengthening the cost advantage and anti risk ability.
Biodegradable plastics and new energy materials projects are promoted simultaneously
The company signed a cooperation agreement with Changchun Institute of Applied Chemistry, Chinese Academy of Sciences to jointly develop PPC, and the subsidiary Lianhong gerun built a 50000 T / a PPC industrial production line. This cooperation is exclusive. PPC is a biodegradable material with excellent performance. It takes carbon dioxide and Po (propylene oxide) as raw materials. Compared with other biodegradable materials, PPC has the advantages of good rigidity toughness balance, good barrier and high transparency. The PPC Supercritical Polymerization Technology in this cooperation has the advantages of high quality proportion of carbon dioxide, high one-way conversion, short reaction time, low production energy consumption, less by-products The product has the characteristics of high molecular weight, which can fully meet the application requirements in the fields of film, plastic film and so on.
The holding subsidiary Jiangxi Academy of Sciences Biology has completed the filing of 200000 t / a lactic acid and 130000 T / a PLA (polylactic acid) projects, and entered the project construction stage, and the relevant work is advancing in an orderly manner; Lianhong gerun, the holding subsidiary of the company, has completed the filing of 150000 T / a PLA biodegradable material project and the filing of new energy material and biodegradable material integration project, including 1.3 million T / a MTO unit, 200000 t / a EVA unit, 200000 t / a PO unit, 50000 T / a PPC unit and relevant supporting facilities, The company’s biodegradable plastics and new energy materials projects are promoted simultaneously.
Layout of raw materials upstream of lithium diaphragm and lithium battery solvent
The company plans to invest 790 million yuan to build 20000 t / a ultra-high molecular polyethylene and 100000 t / a vinyl acetate production lines and supporting facilities. Ultra high molecular weight polyethylene is mainly divided into diaphragm material and fiber material. Diaphragm material is mainly used to produce wet diaphragm of lithium battery, and fiber material is mainly used in military protective armor and other fields. At present, the high-end ultra high molecular weight polyethylene material required by China mainly depends on import, with large market growth space and import substitution space. After being put into operation, the company’s ethylene deep processing industrial chain is further extended, The product structure of advanced polymer materials will be richer.
The company plans to invest in the construction of 100000 tons of lithium battery material carbonate combined unit project, which can produce 50000 tons of ethylene carbonate (EC) products, 52600 tons of methyl ethyl carbonate (EMC) products, 7200 tons of diethyl carbonate (DEC) products and 43600 tons of ethylene glycol, which are mainly used as the solvent of lithium battery electrolyte. The main raw materials required for the project are ethylene oxide, carbon dioxide and methanol produced by the company, which are fully coordinated with the company’s existing industrial chain and have obvious cost competitive advantages.
Profit forecast
It is predicted that the company’s revenue from 2021 to 2023 will be RMB 7.75 billion, RMB 9.02 billion and RMB 10.16 billion respectively, and EPS will be RMB 0.84, RMB 1.16 and RMB 1.36 respectively. The corresponding PE of the current stock price will be 39, 29 and 24 times respectively. It will be covered for the first time and given a “recommended” rating.
Risk tips
Photovoltaic demand is lower than expected; The production capacity launch progress is less than expected; Risk of large fluctuation of upstream raw material price; Risk of sharp decline in product price; Market systemic risk.
