\u3000\u3000 Guizhou Chanhen Chemical Corporation(002895) (002895)
Event: on the evening of January 13, 2022, the company issued the 2022 restricted stock incentive plan (Draft). According to the announcement, the incentive plan plans to grant 8.14 million restricted shares to 483 incentive objects, accounting for 1.67% of the current total share capital of the company. The first grant price of restricted shares and reserved rights and interests in the incentive plan is 12.48 yuan / share.
Comments:
The restricted stock incentive plan binds the interests of core members and demonstrates the company’s confidence in future development
According to the announcement, the main incentive objects of the company’s restricted stock incentive plan are 483, including the company’s chairman, directors, Secretary of the board of directors, middle managers and technical backbone. The incentive plan granted 7.14 million restricted shares for the first time, accounting for 1.46% of the company’s current total share capital, reserved 1 million shares, accounting for 0.20% of the company’s current total share capital, and reserved rights and interests accounted for 12.29% of the total granted rights and interests. At the company level, the restricted shares granted for the first time in the incentive plan take the net profit from 2022 to 2023 as the assessment index, and the trigger values of lifting the ban from 2022 to 2023 are RMB 500 / 800 million respectively. If the reserved rights and interests are granted in 2022, the annual performance evaluation objectives are consistent with the arrangement of restricted shares granted for the first time; If the reserved rights and interests are granted in 2023, the assessment year for the lifting of the restrictions on the sale of the reserved rights and interests is 2023-2024, and the trigger value of the lifting of the restrictions is RMB 8 / 1.2 billion (net profit) respectively. At the same time, the company also sets performance appraisal for individual incentive objects. The restricted stock incentive plan establishes and improves the company’s long-term incentive mechanism, the assessment system is comprehensive, comprehensive and operable, effectively combines the personal interests of shareholders, the company and the core team, and demonstrates the company’s sufficient confidence in the future long-term development.
A total capacity of 1.6 million tons / year of iron phosphate is planned to cooperate with GuoXuan and Sunwoda Electronic Co.Ltd(300207) to realize the coordinated operation of the industrial chain
In September 2021, the company announced the cooperation project with GuoXuan holdings and Fuquan Municipal People’s government, and planned to build a million ton iron phosphate production capacity project in luoweitang group of Shuanglong Industrial Park, Fuquan City, Guizhou Province and Fuquan Longchang plant of the company, The project will invest in the construction of 1 million T / a iron phosphate production line and 100000 t / a battery grade lithium iron phosphate production line in two phases from 2021 to 2026, including the 500000 T / a iron phosphate production capacity agreed by the company and GuoXuan holdings. The company also announced on December 3, 2021 that it plans to establish a joint venture with Sunwoda Electronic Co.Ltd(300207) the world’s leading 3C battery manufacturer to invest and cooperate in phosphorus resources, lithium resources and deep processing. Relying on LAOHUDONG phosphate mine, the company will jointly build a 600000 T / a iron phosphate project in Weng’an county, Guizhou Province. The project will be constructed in two phases, which will be completed and put into operation at the beginning of 2024 and the end of 2025 respectively. The company has perfect upstream phosphate rock resources, phosphorus chemical industry chain and iron phosphate production technology, Sunwoda Electronic Co.Ltd(300207) and Gotion High-Tech Co.Ltd(002074) have technical reserves related to lithium batteries, Sunwoda Electronic Co.Ltd(300207) also has lithium mineral resources. Strong cooperation is expected to further enhance the upstream and downstream synergy of the industrial chain and truly achieve win-win cooperation.
According to the company’s capacity construction progress, the company will put 200000 t / a iron phosphate capacity into operation in 2022, of which 100000 t capacity will be completed and put into operation in the first half of 2022, and the remaining capacity will be put into operation in the second half of 2022. Compared with other competitors, the company has a first mover advantage. At the same time, the company has lower production cost of iron phosphate by virtue of the integration of its own resources and industrial chain, which is conducive to the company to seize the market share in advance.
Synchronous expansion of upstream and downstream capacity and benchmarking of new energy transformation of phosphorus chemical industry
In terms of upstream phosphate rock production capacity, the company now has two phosphate rocks Xiaoba and Xinqiao, with a total phosphate rock production capacity of 3 million tons / year. At the same time, jigongling Phosphate Mine and LAOHUDONG phosphate mine (49%) are under construction, with a total capacity of 7.5 million tons / year. In the long run, the company’s four major phosphate rock production capacity will exceed 10 million tons, and the corresponding equity production capacity can reach 8 million tons. At the same time, the company’s phosphate rocks are located in Wengfu area, Guizhou, with the excellent characteristics of high phosphorus grade, which is conducive to the application of downstream new energy materials in related fields. In addition, in order to match the formal production of iron phosphate products in the future, the company is also building a large number of production capacities such as beneficiation, wet process phosphoric acid, purified phosphoric acid and sulfuric acid from pyrite as raw materials.
In the downstream, in addition to large-scale iron phosphate production capacity, the company also cooperates with Mianyang Fulin Precision Co.Ltd(300432) to build lithium dihydrogen phosphate production capacity, so as to further expand the company’s business layout in phosphorus based new energy materials. Meanwhile, based on the company’s unique semi aqueous wet process phosphoric acid technology, the company can increase the recovery rate of fluorine in phosphate rock, further produce anhydrous hydrogen fluoride and extend to downstream fluorine based new energy materials. In addition, the company has also made relevant investments in downstream lithium iron phosphate industry companies. Sichuan Wanpeng invested by the company (the company holds 30%) and its wholly-owned subsidiary plans to have a capacity of 100000 t / a lithium iron phosphate.
Profit forecast, valuation and rating: we maintain the company’s profit forecast from 2021 to 2023. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 323 / 558 / 941 million respectively, and the converted EPS will be RMB 0.66/1.14/1.93/share respectively. We continue to be optimistic that Guizhou Chanhen Chemical Corporation(002895) with the advantages of sufficient high-quality phosphate rock resources and complete phosphorus chemical industry chain, we continue to make breakthroughs in the field of downstream new energy materials, and we still maintain the “buy” rating of the company.
Risk tips: production capacity construction risk, lower than expected downstream demand, contract performance risk, product price fluctuation risk, environmental protection and safety production risk.
