\u3000\u3000 Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) (300384)
Key investment points
Event: the company announced that it signed the green multifunctional nylon new material integration project / regeneration differentiated nylon 6 and differentiated nylon 66 integration project contract with Zhe Jiang Taihua New Material Co.Ltd(603055) wholly-owned subsidiary.
Won the bid for the integrated large order of recycled and native nylon, and opened up the recycling application of recycled nylon fiber for the first time. The nylon order signed by the company with Taihua new material mainly provides process and technical software, equipment supply and corresponding technical service support for the spinning of recycled nylon and primary nylon chips. The total contract amount is 492 million yuan, accounting for 56.23% of the company's operating revenue in 2020. As a supplier of nylon process technology solutions, the company has covered the whole industrial chain from caprolactam, nylon 6 and 66 polymerization to spinning. The company has a long-term and stable cooperative relationship with Zhe Jiang Taihua New Material Co.Ltd(603055) . The characteristics of this project are as follows: 1) an integrated and complete industrial chain of "nylon polymerization + spinning + weaving + dyeing and finishing" has been formed for the first time; 2) It is the first time to open up the integration of recycled nylon and fiber recycling application; 3) Innovative continuous nylon 66-ssp and differentiated nylon 66 spinning to realize the import substitution of series high-end nylon 66 products. This phase of the project is the fifth phase of the cooperation between the company and Taihua new material, and also the first phase of the green multi-functional nylon new material integration project invested and constructed by Taihua new material in Huai\'an, Jiangsu Province. The implementation of this demonstration project will effectively promote the company to continuously improve the technical level of process and equipment, expand the profit scale, and further strengthen the strategic cooperation relationship with the leader Zhe Jiang Taihua New Material Co.Ltd(603055) in the functional fabric industry.
Technology driven enterprises, nylon field has a large number of technical reserves and solutions. The company's R & D personnel account for more than half. Liu Di, chairman of the board, is a top expert in the chemical fiber industry and has successively won the "He Liang He Li" Industrial Innovation Award and the second prize of the "national scientific and Technological Progress Award". At the beginning of listing, the company's business was mainly nylon spinning technology. After listing, the company extended its related business to nylon polymerization, high-end nylon fiber and coal based nylon 6. At the same time, the company has systematic solutions for recycled polyester and Lyocell staple fiber.
Policy driven the rapid opening of recycled food grade pet market, and the company's polyester bottle chip recycling is in a leading position in the world. The minimum content standard of recycled PET ensures the rigid demand. California of the United States stipulates that the content of recycled plastics in PET bottles will be 15% from 2022. The European Union specifies that the proportion of recycled plastics in PET containers will not be less than 25% by 2025 and 30% by 2030. Major enterprises make voluntary commitments. The company has a complete "bottle to bottle" regeneration solution, which truly realizes the closed-loop recycling of polyester with the same grade, and the recycled PET bottle chip products have reached the qualification certification level of Coca Cola, Nestle, Danone and other enterprises.
Profit forecast and investment rating: the company has a large number of technical reserves and complete solutions in the nylon field, high technical barriers, and large nylon orders are expected to be implemented one after another. At the same time, the strong demand for recycled polyester bottle chips has brought new growth. We raised the company's net profit attributable to the parent company from 182 million yuan, 216 million yuan and 282 million yuan to 185 million yuan, 249 million yuan and 320 million yuan from 2021 to 2023, with EPS of 0.58 yuan, 0.78 yuan and 1.00 yuan respectively. The current share price corresponds to PE of 44x, 32x and 25X respectively, maintaining the "buy" rating.
Risk tip: orders are not as expected, R & D risks, and industry competition intensifies
