\u3000\u3 China Vanke Co.Ltd(000002) 549 Hunan Kaimeite Gases Co.Ltd(002549) )
Key investment points
Events
The first quarterly report of 2022 was released, during which the operating revenue was 201 million yuan, a year-on-year increase of 58%; The net profit attributable to the parent company was 56 million yuan, with a significant year-on-year increase of 257%.
The volume and price of rare gas and combustible gas business rose simultaneously, and the company’s performance in the first quarter exceeded expectations
In the first quarter of 2022, the company’s revenue and profit increased significantly, and the sales volume and price of rare gas and combustible gas (liquefied gas, pentane, etc.) products increased significantly. In the first quarter of 2022, the comprehensive gross profit margin reached 50%, a new high in the past two years. In the first quarter of 2022, the company’s sales expense rate / management expense rate / R & D expense rate were 4.0% / 9.0% / 5.8% respectively, with a year-on-year decrease of 1.1pct/6.8pct/1.4pct and a month on month decrease of 1.4pct/3.9pct/0.8pct, which is due to the significant growth of revenue and the scale effect.
The 2022 equity incentive plan has been released, covering a wide range and demonstrating the confidence of the management
The incentive plan plans to grant no more than 19 million restricted shares (accounting for about 3% of the total share capital of the company), and the grant price is 8.24 yuan. The incentive objects include 220 senior executives, middle managers and core technical backbones, accounting for 31% of the total number of employees, and the incentive coverage is wide. The performance evaluation objective of the incentive plan is: the net profit in 2022 / 2023 / 2024 is greater than 180 / 250 / 350 million yuan respectively.
It is proposed to raise no more than 1 billion yuan for the implementation of special gas and high clean hydrogen peroxide projects
The company plans to raise no more than 1 billion yuan by non-public offering of A-Shares for the implementation of Yizhang KEMET special gas project (with a total investment of 750 million yuan) and Fujian KEMET high clean hydrogen peroxide project with an annual output of 300000 tons (with a total investment of 520 million yuan).
The traditional business is stable and improving: the capacity of carbon dioxide is further increased, and new products such as hydrogen peroxide help the growth
Fujian KEMET plans to invest 520 million yuan to implement 300000 tons / year (27.5%) high clean food and electronic hydrogen peroxide projects. In addition, Jieyang project also includes 300000 tons of high clean hydrogen peroxide. Hydrogen peroxide has the characteristics of transportation radius, supply and demand do not match, and there is a supply gap in some regions such as Fujian.
Electronic special gas creates a new growth pole: rare gas is expected to be in large quantities and officially cut into synthetic products
1) in 2021, rare gases were sold steadily and obtained relevant certification. A total of 19.38 million yuan of rare gas (krypton, xenon and neon) sales contracts were signed. It is expected that rare gases will be released in 2022.
2) Yizhang KEMET Special Gas Co., Ltd. is proposed to be established to officially cut into synthetic gases. The products include halogen gas, VOC standard gas, deuterium gas and other products. The total investment of the project is 750 million yuan. The construction period of the project is three years. It is estimated that the annual income is 650 million yuan, the tax is 100 million yuan and the internal rate of return is as high as 28%.
Profit forecast and investment suggestions
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 250 / 4.1 / 540 million respectively, with a compound growth rate of 57%, corresponding to 35 / 21 / 16 times of PE respectively, maintaining the “buy” rating.
Risk warning: the production progress of the project is less than expected, and the sales of electronic special gas is less than expected.
