Tire auxiliaries industry leader, the company's rapid growth. The company is a high-tech enterprise specializing in the research, development, production and sales of silicon dioxide and carbon black. The company's two series of products are mainly used in tires and industrial rubber products, cable shielding materials, color masterbatch and feed and daily chemical industries and other fields. The company's customers include domestic and foreign well-known tire enterprises, rubber products enterprises, rubber and plastic enterprises, feed enterprises and shoes companies, etc., product sales cover Chinese mainland, South Korea, Southeast Asia, Europe and other countries and regions. From 2018 to 2020, the operating income of the company was 9.41,9.72 and 996 million yuan respectively, with a compound growth rate of 2.88%; the net profit returned to the mother was 0.88,0.66 and 118 million yuan, with a compound growth rate of 15.80%. The rapid growth of the company's performance in the first three quarters of 2021 is mainly due to the continuous increase in the prosperity of China's carbon black industry and the increase in business income and profitability of the company's carbon black products compared with the same period last year.
The sales volume of the main products continues to grow and the utilization rate of production capacity is full. The company's main products include silicon dioxide, carbon black and sodium silicate. In 2020, the main business income of silica, carbon black and sodium silicate accounted for 35.20%, 61.67% and 3.12%, respectively. From 2018 to 2020, the sales of silicon dioxide and carbon black increased year by year, with a compound growth rate of 12.41% and 25.16%. In 2020, the production capacity of silicon dioxide and carbon black was 80,000 tons and 115000 tons, respectively.
High-end special carbon black has a broad prospect. At present, China's middle and low-end carbon black has excess capacity and high market maturity. In 2020, the company's gross profit margin in the rubber application field of carbon black products is 15.77%. The high-end special carbon black with high technical requirements can be applied to green tires and lithium-ion battery cathode materials, and the market competition is relatively weak. In 2020, the gross profit margin of the company's carbon black products in non-rubber applications is 30.5%. In the future, the company will gradually expand the production capacity of special carbon black such as conductive carbon black, and increase the proportion of special carbon black in the company's carbon black products.
Seize the opportunity of rapid development of highly dispersed silica, continue to expand production capacity, and further improve the company's position in the industry. After the 21st century, China closely follows the foreign trend of green tire and vigorously promotes the process of green tire industrialization. With the implementation of green tire laws and regulations and the development of people's consumption consciousness, the demand for highly dispersed silica will increase day by day. The company invests 300 million yuan to build 100,000 tons / year highly dispersed silica and 30,000 tons / year silicic acid projects. the construction period is 24 months. it is expected that the new business income will increase by 653 million yuan after reaching production, the net profit after tax is 134 million yuan, and the payback period of the project investment is 5.07 years.
Profit forecast. We expect the company's net profit from 2021 to 2023 to be 152 million yuan, 181 million yuan and 231 million yuan. The corresponding EPS can reach 0.83,0.99,1.27 yuan, give the company 20-25 times PE in 2022, the corresponding reasonable value range is 19.80-24.75 yuan, and give the neutral rating for the first time.
Risk hint. Market competition risk; cost rising risk; safety and environmental protection risk; COVID-19 epidemic risk.
