Event: on January 17, the National Development and Reform Commission and other seven departments jointly issued the "guidance on speeding up the Construction of the Recycling system of waste Materials" (hereinafter referred to as "the guidance"). The goal is to by 2025, the waste materials recycling network system has been basically established, and more than 1000 green sorting centers have been built. The recycling consumption of nine main renewable resources, such as waste plastics and waste rubber, reached 450 million tons. About 60 large and medium-sized cities have taken the lead in building a basically perfect recycling system of waste materials.
Comments:
The guidance emphasizes promoting the recycling of waste resources and promoting the level of processing and utilization of renewable resources. This "guidance" emphasizes the following four aspects: improving the recycling network of waste materials, improving the level of processing and utilization of renewable resources, promoting the development of second-hand goods trading and remanufacturing industry, and improving the policy guarantee system for the recycling of waste materials. We believe that the requirements of "promoting the specialization of waste materials recycling" and "improving the technical level of processing and utilization of renewable resources" coincide with the current application scenarios of recyclable packaging materials business laid out by aggregate chemistry. The company operates EPP incubator / PP packing box business through recycling and leasing, which reflects the specialization of recycling. At the same time, the company will produce and use high-strength, recyclable green foam materials such as EPP for the production of incubators, which reflects the improvement of the technical level of processing and utilization of renewable resources.
Set up an operating subsidiary to carry out the business of leasing and selling recycled packaging products. On January 10, the company announced that it would invest in the establishment of a subsidiary Polychain Operation Co., Ltd., which intends to carry out the development, leasing and sales of recycled packaging products. to provide packaging recycling and operation services for customers in fruits and vegetables, aquatic products, fresh food, medicine, express delivery and other industries. The main products in the initial operation of the project are EPP cycle incubator which can replace white foam box and PP cycle hollow board packing box which can replace carton. In terms of EPP incubators, the company has previously announced an investment of 300 million yuan to build EPP bead production capacity in Jiangling County, Hubei Province, to provide raw material support for EPP incubators, with a certain industrial synergy. In terms of PP boxes, the company's main target market is to replace the existing postal express field of cartons, foam boxes and other packaging materials. Through the reuse of PP recycling boxes, the production of solid waste such as disposable express packaging can be greatly reduced, which is conducive to the construction of a "waste-free city".
Profit forecast, valuation and rating: we maintain the company's profit forecast. It is estimated that the company's net profit from 2021 to 2023 will be 1.03,2.48,362 million yuan respectively, corresponding to EPS 1.10,2.65,3.87 yuan per share. We believe that the company's traditional business performance, such as flame retardants and modified plastics, is expected to improve, and the business layout of phosphorus series new energy materials and recyclable packaging materials will open up room for growth for the company. We still maintain the company's "buy" rating.
Risk hint: the progress of project construction is not as expected, the price of raw materials fluctuates, the downstream demand is less than expected risk, and the promotion of green cycle incubator products is not as expected.
