This report is read as follows:
The company's Q2 performance in 2022 slightly exceeded expectations, the company's functional silane products benefited from the booming demand for photovoltaic trichlorosilane, continued to improve, aerogels and other high-end products steadily. Maintain the overweight rating and raise the target price to 57.30 yuan.
Main points of investment:
Maintain the "overweight" rating. The functional silane of the company is booming with the prosperity of photovoltaic trichlorosilane. We have raised the EPS from 2022 to 2024 to 3.37max 4.96pm 5.93 yuan (the original EPS was 2.52 EPS 3.19max 3.70 yuan respectively), with a growth rate of 51%, 47% and 20%, respectively, and raised the target price to 57.3yuan (corresponding to 17 times PE in 2022).
22Q2 grew sharply compared with the same period last year, slightly exceeding expectations. The company's 2022Q2 realized net profit of RMB 2.1-230 million, compared with the same period of last year. The year-on-year increase was mainly due to the sharp increase in the prices of the company's main products.
Functional silane benefits from the strong demand of photovoltaic trichlorosilane and maintains a high prosperity. Through the production of trichlorosilicon and further processing into functional silanes such as silane coupling agent and silane cross-linking agent, the price cycle of the company's products is highly similar to that of photovoltaic trichlorosilane, and its profitability is stronger. According to Baichuan Yingfu, the price of Q2 photovoltaic grade trichlorosilicon in 2022 is 26427 yuan / ton, + 181% compared with the same period last year, and + 29% compared with the previous year. Due to the continuous increase in new polysilicon production capacity in the second half of 2022, the start-up procurement of new polysilicon devices and the demand for continuous chlorine supply will further boost the photovoltaic trichlorosilicon market, so the company's functional silane products are sustainable.
Aerogel cost industry leading, fund-raising projects steadily. Because the company has the advantages of low-cost production and scale of ethyl orthosilicate, the cost of aerogel products is industry-leading, and it is expected to enter the state of trial production by the end of the year and reshape the industry pattern later.
Risk hint: the construction progress of the project is not as expected and the product demand is not as expected.