\u3000\u3 China Vanke Co.Ltd(000002) 549 Hunan Kaimeite Gases Co.Ltd(002549) )
Hunan Kaimeite Gases Co.Ltd(002549) released the first quarterly report of 2022. In the first quarter, the company achieved a revenue of 200 million yuan, a year-on-year increase of 57.8%, a net profit attributable to the parent company of 56.285 million yuan, a significant year-on-year increase of 247.9%, a non net profit attributable to the parent company of 53.778 million yuan, a year-on-year increase of 277.5%, a single quarter gross profit margin of 49.7%, a year-on-year and month on month increase of 11.1% / 10.9% and a net profit margin of 28.0%. The substantial increase in revenue performance is mainly due to the large increase in the sales of rare gas products of Yueyang electronic gas company. In addition, the company’s liquefied gas and pentane products have also increased both in volume and price.
There is a large demand space for electronic special gas, opening the prelude to import substitution. Techcet predicts that the global electronic gas market is expected to reach US $7 billion in 2022, including US $5 billion for special gas and US $2 billion for bulk electronic 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 company’s main source of revenue, with a revenue of 285 million yuan and a gross profit margin of 52.4% in 2021. The company has become the strategic supplier of Coca Cola and Pepsi Cola in China. The gas products with high purity and stable quality have been recognized by the majority of customers in the food and beverage industry and develop long-term customers. On the supply side, 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. In terms of production capacity, the company’s production line is widely distributed in the southern market with strong demand for food and beverage, and continues to expand production and optimize transportation costs.
Fujian hydrogen peroxide project (electronic grade hydrogen peroxide) and Yizhang electronic special gas project will be built by constant increase, so as to improve the company’s electronic special gas product system and expand production capacity. 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. In 2021, the revenue of Yueyang electronic special gas project was 18.47 million yuan. A 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. In addition, the company’s carbon dioxide, krypton and xenon products have passed the French liquid air certification, and 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 continue to be certified by asmai, Dayang acid and other manufacturers. In the future, the company will also realize the self supply of carbon dioxide, rare gas, raw gas and other raw materials by means of self production and in-depth cooperation with upstream, so as to improve the profitability. We expect the company to realize a net profit attributable to the parent company of RMB 300 / 54 / 700 million in 2022 / 2023 / 2024, maintaining the “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
