\u3000\u3 China Vanke Co.Ltd(000002) 549 Hunan Kaimeite Gases Co.Ltd(002549) )
It has been deeply engaged in the gas industry for more than 30 years, and its profitability ranks in the forefront of the industry Hunan Kaimeite Gases Co.Ltd(002549) founded in 1991, it produces and sells industrial gas, medical gas, standard gas, special gas, mixed gas, food additive gas, electronic chemicals and other gas products with petrochemical tail gas (waste gas) and flare gas as raw materials. In 2021, the company’s revenue increased by 28.7% year-on-year to 668 million yuan, and the net profit attributable to the parent company increased significantly by 92.3% year-on-year to 139 million yuan, with a gross profit margin of 42.0% and a net profit margin of 20.8%, both of which are in the forefront of the industry. In 2018, the company established Yueyang KEMET electronic special rare gas company to distribute electronic gas and produce ultra-high purity gas and multi-component mixed gas urgently needed in semiconductor, panel, aerospace, medical and other fields such as high-purity carbon dioxide, helium, neon, argon, fluorine argon neon, fluorine krypton neon and so on.
There is a large demand space for electronic special gas, opening the prelude to import substitution. According to techcet, the global electronic gas market is expected to reach US $7 billion in 2022, including US $5 billion of special gas and US $2 billion of electronic bulk gas. Chinese mainland China’s electronic special gas market reached 17 billion 360 million yuan in 2020. In the future, China’s downstream wafer fabs will expand its capacity, upgrade its manufacturing processes and transfer global panel capacity to the mainland, which is expected to bring sustained and strong impetus to China’s demand for electronic gas. At present, due to technical and capital barriers, the Chinese market is dominated by overseas leading companies, and overseas large gas companies account for more than 80% of the market share. In recent years, domestic manufacturers have made continuous breakthroughs in the field of electrical special gas, fully benefiting from the continuous growth of the mainland electronic special gas market and the rising trend of national production rate, and the growth power is sufficient.
Carbon dioxide business has a solid position and obvious advantages. Liquid carbon dioxide products have always been the main source of income of the company. In 2021, the relevant income was 285 million yuan, and the gross profit margin reached 52.4%. Raw materials: under the background of “double carbon”, the company has formed a stable cooperative relationship with the leading enterprises of upstream energy and chemical industry to ensure stable supply. Customers: the company is a strategic supplier of Coca Cola and Pepsi Cola in China. High purity and stable quality gas products have been recognized by the majority of customers in the food and beverage industry, and most of them have developed into long-term customers. Capacity layout: the production line is widely distributed in the southern market with strong demand for relevant food and beverage to solve the problems of carbon dioxide transportation radius and transportation cost.
Raw material guarantee, capacity construction, product volume and certification go hand in hand, and the electronic special gas business is expected to become a new long-term source of the company. Raw materials: the company will supply carbon dioxide, rare gas, raw gas and other raw materials by itself and in-depth cooperation with upstream. Production line: Yueyang electronic special gas project can produce ultra-high purity carbon dioxide, helium, neon, argon, krypton, xenon, hydrogen chloride reference molecular laser gas distribution, etc; Yizhang electronic special gas project construction company will increase high-purity hydrogen chloride, hydrogen fluoride and hydrogen bromide to improve the company’s product system. Volume: in 2021, the sales of high-purity krypton gas, xenon and neon gas totaled 19.38 million yuan, and the neon gas sales contract worth 45 million yuan was signed in March 2022. Electronic special gas will become an important driver of the company’s future profit growth. Certification: carbon dioxide, krypton and xenon products have passed the French Air Liquide certification. The 193nm laser mixed gas used for existar laser has passed the relevant equipment test in the United States. At the same time, the mixed gas products are being certified by asmai, Dayang acid and other manufacturers in an orderly manner. We expect the company to achieve revenue of RMB 1.01/15.5/1.8 billion in 2022 / 2023 / 2024, and net profit attributable to the parent company of RMB 3.0/5.4/650 million, corresponding to pe2.8 billion 8 / 15.9/13.4x, first coverage, with a “buy” rating.
Risk tip: covid-19 epidemic, economic cycle fluctuations and other factors lead to lower downstream demand, new product R & D and customer certification
