Key points of investment
occurrences
On September 16, Yueyang Kaimeite Electronic Special Rare Gases Co., Ltd., a holding subsidiary of the company, signed a daily operating sales contract with a total amount of 143 million yuan (tax included).
The highest single electronic specialty gas order ever signed was 143 million yuan, and annual performance is expected to grow rapidly. The product types involved in this order were laser gas (which was sold for the first time) and high-purity rare gases. The total contract amount was 143 million yuan (tax included), making it the largest single electronic specialty gas order announced by the company so far. According to the announcement, the gross margin of the electronic specialty gas business in the first half of 2021 and the first half of 2022 was 96% and 85% respectively, and the net interest rate of Yueyang Kemet Electronic Special Gas Company was 51%. Assuming that the net profit corresponding to this order accounted for 46% of the net profit for the full year of 2021, which is expected to have a positive impact on 2022 results.
According to the company's announcement, 2021/2022 ends on September 16, and the company announced that the amount of electronic specialty gas orders signed was about 1938/257.24 million yuan respectively, and the order amount for electronic specialty gases was about 13 times that of 2021.
The 2022 Restricted Stock Incentive Plan has been released, with broad coverage demonstrating management's confidence that no more than 19 million restricted shares will be granted to incentive targets at a price of 8.19 yuan/share. The performance assessment target of the incentive plan is: the net profit for 2022/2023/2024 is not less than 1.8/25/350 million yuan.
Traditional businesses are steadily improving. In terms of expanding carbon dioxide production capacity and new products such as hydrogen peroxide to help grow traditional businesses, the company invested a total of 2 billion yuan to expand carbon dioxide production capacity and achieve mass production capacity for new products such as hydrogen peroxide. 1) Fujian Kaimete plans to invest 512 million yuan to implement 300,000 tons/year high clean food and electronic grade hydrogen peroxide projects. 2) Jieyang Kemet plans to implement 300,000 tons of high-clean hydrogen peroxide and related gas purification projects. The total investment of the project is 1,486 million yuan. After completion of construction, the project will achieve a mass production capacity of 300,000 tons/year of high-purity food grade carbon dioxide and 300,000 tons/year of industrial and electronic grade hydrogen peroxide.
Electronic specialty gases have created a new growth pole: the amount of rare gas laser gas continues to be released, cutting into synthetic electronic specialty gases 1) In 2021, rare gases were sold steadily, and relevant certifications were obtained. A total of 19.38 million yuan of sales contracts were signed for rare gases (krypton, xenon, neon). The amount of rare gases is expected to be released in 2022.
2) It is proposed to establish Yizhang Kaimei Special Gas Co., Ltd. to officially enter synthetic gases. The products include halogen gas, VOC standard gas, deuterium gas and other products. The total project investment is 750 million yuan. The project construction period is 3 years. The estimated annual income after delivery is 650 million yuan, tax payments of 100 million yuan, and the internal rate of return is as high as 28%.
Profit forecasts and investment advice
The company's net profit for 2022-2024 is estimated to be 255/41/540 million yuan respectively, with a compound growth rate of 57%. The corresponding PE is 54/32/24 times respectively, maintaining the purchase rating.
Risk warning:
Project commissioning progress fell short of expectations, and electronic specialty gas sales fell short of expectations.