\u3000\u3000 Sino-Platinum Metals Co.Ltd(600459) (600459)
Summary of this issue:
Deepen reform and speed up to stimulate vitality in an all-round way. The company is a leading enterprise of precious metal new materials in China. It was established in 2000 and listed on the Shanghai Stock Exchange in 2003. At present, it has established three plates: precious metal new materials, precious metal resource recycling and precious metal supply services, forming a complete industrial chain. In September 2021, the controlling shareholder of the company was changed from Yunnan precious metals group to cloud investment group, and the comprehensive competitive advantage of the industry is expected to be further strengthened. On December 10, the company provided a wide range of equity incentives to senior executives and core employees at RMB 11.51/share. Backed by the strong strength of major shareholders, equity incentive stimulates endogenous power, the core business continues to be large-scale, the planning and layout go hand in hand, and the future performance growth is fully guaranteed.
The main products are in large quantities, and the performance has ushered in high growth. Precious metal precursors and automobile exhaust catalysts are important components of the company’s main products. The application fields of precious metal precursors are mainly concentrated in electronics, chlor alkali, coal chemical industry, medical treatment, automobile, petrochemical and other industries. The company currently has a precursor capacity of about 80 t / A. according to the output release rhythm of the 299 T / a precursor project under construction, the precursor output may reach 200 t and 300 t in 2022-2023. The Chinese market of automobile exhaust catalyst is large, and the domestic substitution trend appears. With the upgrading of “national VI” and “non road machinery T4”, the application space of gasoline / diesel exhaust catalyst is expected to increase to 50 billion and 40 billion yuan in 2025. The company’s 2.15 million pieces / year national VI catalyst production line project has been completed and put into operation. It is expected that the production and sales of the company’s catalytic purifier will continue to grow in the next three years. Guiyan Dongying, a subsidiary, plans to invest in the construction of 12 million L / a national VI automobile exhaust catalytic project. The catalyst market is broad and deeply bound with important downstream customers. The company’s automobile exhaust catalyst business is expected to further expand.
We are committed to breaking the shackles of resources and the multiple growth of recycling business. China’s platinum group metal reserves are scarce but the demand is large. The recovery of precious metals will become the key to break this dilemma. However, the industry has obvious technical and financial barriers, and the industry pattern will gradually focus on the leader. Sino-Platinum Metals Co.Ltd(600459) as a leading enterprise in precious metal recycling in China, it currently has an annual processing capacity of 5000 tons of precious metal secondary resource materials and an output of about 8 tons of platinum group metals. At the same time, the company plans to invest in the construction of a precious metal recovery project with an annual treatment of 10000 tons of precious metal secondary resource materials and an output of 20 tons of platinum group metals. If the project is successfully put into operation, the leading position of the company will be further strengthened.
Deep ploughing fuel cell research and development, layout hydrogen energy track. The first demonstration application of hydrogen fuel cell in automobile and other fields has become a breakthrough and main market for the initial application of hydrogen energy. Because fuel cells must meet the requirements of rapid start-up and efficient operation under high variable load, platinum based metal catalysts play an important catalytic role in the whole power generation process because of their good cooling effect. Driven by the three driving forces of energy security, climate change and technological progress, countries have successively put forward policies to support the development of hydrogen industry chain. As a key element in fuel cell catalyst, platinum group metals will continue to benefit from the further deepening and development of hydrogen industry chain.
Profit forecast and investment rating. We estimate that the EPS of the company from 2021 to 2023 will be 0.8, 1.16 and 1.56 yuan / share respectively, and the PE corresponding to the current stock price will be 32x, 22x and 16x respectively. Considering the significant growth of the company’s precursor and automobile exhaust catalyst business and the continuous driving force of precious metal recovery and hydrogen fuel cell catalyst business, the company is rated as “buy”.
Risk factors: the new capacity is less than expected, and the demand for fuel cells is less than expected.
