Key investment points:
Core logic
The field of new chemical materials is an important direction for the future development of the chemical industry. With the slowdown of downstream demand growth in the traditional chemical industry, it is a general trend to concentrate the market share to the leader, and the core competition threshold is cost and efficiency; The downstream is still in the fast-growing field of new materials. The core competitive barriers are R & D capability, industrial chain verification threshold, service capability, etc. with policy support, China’s chemical new materials industry is expected to usher in an accelerated growth period. We recommend high-quality targets of new chemical materials with strong R & D capability and excellent management in the core supply chain, mainly including electronic chemicals (semiconductor materials, display materials, 5g materials, etc.), new energy materials, pharmaceutical intermediates and other fields. Give the industry a “recommended” rating.
Industry information update:
Semiconductor related:
On April 29, global semiconductor watch reported that Samsung 3nm chip will start mass production in Q2. Samsung Electronics announced on April 28 that it will start mass production using 3gae (early 3nm gate all-round) process in this quarter, which not only marks the arrival of 3nm manufacturing technology in the industry, but also indicates that it is the first node in the industry to use ring gate field effect transistors (gaafets). In early April, TSMC publicly stated that the company had made a breakthrough in the development of 3nm process. Among them, n3b, the second version of 3nm process, may be first put into production in August this year, and n3e in 3nm process may be mass produced in the second quarter of 2023, half a year earlier than expected.
Show material related:
On April 28, Jibang Consulting: from 2021 to 2026, the market scale of uvcld is 24%. According to the latest “2022 deep ultraviolet LED application market and brand strategy” report of trendforce Jibang consulting, under the long-term outlook, air sterilization and large-scale surface sterilization are still the key layout areas of leading household appliance brand manufacturers. At the same time, uv-cled will also have the opportunity to introduce the original automotive air conditioning, dynamic water sterilization, manufacturing facilities and factory automation applications. Trendforce Jibang consulting analysis shows that the annual compound growth rate of uv-cled market scale from 2021 to 2026 is 24%.
New energy materials related:
On April 27, the National Energy Administration released the construction and operation of photovoltaic power generation in the first quarter of 2022. The grid connected capacity of photovoltaic power generation increased by 13.21 million kW in the first quarter of 2022, including 4.341 million kw of centralized photovoltaic power station, 8.87 million kw of distributed photovoltaic, and 2.547 million kW of household distributed photovoltaic in distributed photovoltaic. On the same day, the Shanxi Guoxin Energy Corporation Limited(600617) consumption monitoring and early warning center of the whole released the consumption of new energy connected to the grid in all provincial regions in March 2022. In March 2022, the national photovoltaic utilization rate was 97.2% and the profit margin of wind power was 96.1%; From January to March 2022, the national photovoltaic utilization rate was 97.20% and the profit margin of wind power was 96.80%.
Information update of key enterprises:
Valiant Co.Ltd(002643) : on April 28, the company released the first quarter report of 2022: in the first quarter of 2022, the company realized an operating revenue of 1.371 billion yuan, an increase of 74.26% year-on-year; The net profit attributable to shareholders of listed companies was 233 million yuan, an increase of 76.67% year-on-year; After deducting non recurring profits and losses, the net profit attributable to the shareholders of the listed company was 230 million yuan, an increase of 79.46% year-on-year; The net cash flow from operating activities was 234 million yuan, a year-on-year decrease of 38.88%; The basic earnings per share was 0.25 yuan, a year-on-year increase of 78.57%; The weighted average return on net assets was 4.06%, with a year-on-year increase of 1.54 percentage points.
Focus on the company:
The key recommendation is Valiant Co.Ltd(002643) . The two-way development of OLED + zeolite molecular sieve will drive the continuous growth of the company.
It is suggested to pay attention to Hubei Dinglong Co.Ltd(300054) . The company is the only CMP polishing pad supplier in China who fully master the core R & D technology and production process of the whole process of CMP polishing pad, and is in a leading position in China’s polishing pad Market.
Shandong Sinocera Functional Material Co.Ltd(300285) . As a platform company of new inorganic materials in China, the company has mastered the core technology of hydrothermal method, and the endogenous MLCC ceramic powder, zirconia and alumina have reached the world-class level; Prince ceramics (ceramic products) and aerchuang (zirconia downstream products) acquired by extension are the downstream of the company’s products, both of which have ushered in rapid growth.
Phichem Corporation(300398) , the company is a leading enterprise in electronic chemicals. The 5000t / a TFT-LCD photoresist project provides stable supply to customers. The production capacity of 5500t / a synthetic new material project and 100t / a high-performance photoelectric new material purification project is steadily improving. The test capacity of OLED materials and the construction of production line are also advancing in an orderly manner. We are optimistic about the above projects to promote the new growth of the company in the future. It is suggested to pay attention to Puyang Huicheng Electronic Material Co.Ltd(300481) . The company focuses on the R & D and production of maleic anhydride derivatives and functional intermediates, benefiting from the rapid development of China’s electronic information industry, the increasing investment in China’s smart grid, ultra / ultra high voltage transmission lines and the wide application of new composite materials, and the demand for maleic anhydride derivatives continues to grow.
It is suggested to pay attention to Zhejiang Juhua Co.Ltd(600160) , the company has a complete fluorine chemical industry chain, the main products are produced according to international advanced standards, the core business fluorine chemical industry is in the leading position in China (among which fluorine refrigerant is in the leading position in the world), and the characteristic new chlor alkali materials are in the leading position in China. Key recommendation Zhejiang Wansheng Co.Ltd(603010) , the company is the world’s largest manufacturer of organophosphorus flame retardants. Through years of R & D investment and practice accumulation, the company’s differentiated products can meet the needs of different customers, and the products are gradually accepted by high-end customers.
Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) . The company is one of the manufacturers of wet electronic chemicals with the most complete range of products and the strongest supporting capacity in China. The products can be widely used in flat panel display, semiconductor and led, photovoltaic Cecep Solar Energy Co.Ltd(000591) and other electronic fields, as well as in cleaning, lithography, etching and other key technical processes.
Hoshine Silicon Industry Co.Ltd(603260) , the company has a complete industrial chain of industrial silicon and silicone, with scale and cost advantages, and the upstream and downstream synergy is expected to continue to strengthen. With the steady progress of projects under construction, the company’s performance is expected to continue to improve.
It is suggested to pay attention to Red Avenue New Materials Group Co.Ltd(603650) , actively promote the electronic material business of the company, firmly grasp the opportunity of urgent localization and substitution of key materials, consolidate the advantages of coordinated development of semiconductor photoresist and display photoresist, realize new breakthroughs in the horizontal industry of photoresist, backtrack the development of core raw materials, accelerate the development and introduction of the company’s electronic phenolic resin in the field of photoresist, and give full play to the advantages of the company’s industrial chain, Form a new model of integrated development of industrial chain.
Risk warning: the epidemic situation may lead to the risk of large market fluctuations; The emergence of alternative technologies; Industry competition intensifies; The economy fell sharply; The product price fluctuates greatly; Focus on the company’s performance does not meet expectations.
