Main PCB chemicals, extended distribution of lithium battery recovery
The company is the leader of domestic PCB chemicals. The production capacity of chemical reagents and PCB chemicals is 20, 000 tons and 50, 000 tons respectively.
In 2017, we will cut into the field of new energy and lay out the industry of lithium battery recycling and cathode materials. The design capacity of lithium battery material is 26000 tons, and there are 10, 000 tons under construction.
Lithium materials business opens a new chapter in the company's growth.
New energy vehicles + energy storage two-wheel drive, lithium battery demand continues to break out. With the continuous growth of production and sales of new energy vehicles, the number of lithium iron phosphate power batteries in China increased by 172.7% in January 2022 compared with the same period last year. At the same time, driven by the development of wind power and photovoltaic, the installed scale of electrochemical energy storage in China reached 3269.2MW in 2020, an increase of 91.2% over the same period last year. Demand for lithium batteries continues to erupt.
The advantage of recycling industry is obvious, and the peak cycle of battery scrapping season is coming. Waste power batteries have great economic advantages. as of March 4, 2022, the price of lithium carbonate in China reached 495000 yuan / ton, up 496.4% from the same period last year. Under the condition that the price of new energy materials and the scrapped amount of power batteries continue to rise, the total scale of power battery recycling is expected to reach 107.43 billion yuan in 2030.
Lithium power business focuses on recycling layout, the company has multiple advantages. The company's patented technology can directly realize the preparation of lithium iron phosphate cathode materials from waste lithium iron phosphate batteries, and the company has achieved differential competition in the field of power battery recycling. At the same time, the company cooperates with car companies, battery factories and other parties to fully protect the source of their own waste power batteries.
Benefit from domestic substitution + strict environmental protection, the leading position of PCB chemicals is stable.
The import substitution trend of PCB chemicals is obvious. The global share of PCB output value in China has increased by 5.8 pct in the past five years. Affected by the import substitution of domestic PCB, the market scale of PCB chemicals will continue to expand in the future.
The share of PCB chemicals will become more concentrated. There are environmental problems in the production process of PCB electronic chemicals. in the future, the market share of PCB electronic chemicals will be concentrated to the enterprises that can bear the cost of environmental protection.
As the leader of domestic PCB chemicals, the company has obvious advantages in research and development. In 2020, the company has a total of 208 R & D personnel, and the R & D expenditure rate is about 5%, all according to the leading level of the industry.
Investment suggestion
It is expected that in 2023, the net profit of 2021, 2022, and 2023 will be 71.21, 183.98, and 0.18, respectively, respectively, and the EPS will be 0.47, 1.11, respectively, corresponding to the stock price PE of 115.12, 44.56, and 18.85 times on March 4, 2022, respectively. The company's business is expected to grow rapidly and is given a "highly recommended" rating.
Risk factors: policy is not as expected, sales of PCB chemicals are not as expected, and capacity release is not as expected.
