Event: the company issued an announcement and recently signed a procurement agreement with an important customer, BASF.
The sales area of core products has been expanded from Asia-Pacific to global, and the sales volume will increase significantly in the future. BASF is the core customer of the company's mobile source out-of-stock molecular sieve, and this agreement adds to the product types of the "Raw material Purchasing contract" concluded in 2017. a variety of product procurement items, including upgrading iterative mobile source denitrification molecular sieve, have been agreed upon, and the purchase volume range has set a number of quantity ranges from 0 tons to 6000 tons and above, and the product sales region has been expanded from the original Asia-Pacific region to the global scope. BASF is one of the major suppliers of denitrification catalysts in the world, and deep cooperation with BASF will help to improve the company's market share. the signing of this agreement indicates BASF's recognition of the quality and production capacity of the company's mobile source denitrification molecular sieve products. it will help to further enhance the company's market expansion and comprehensive competitiveness in the industrial catalyst industry.
The national six standards for diesel vehicles have been gradually implemented, and the domestic demand for molecular sieves sold out of mobile sources has been opened. The sixth national standard can be regarded as one of the most stringent emission standards in the world. National 6a standard will be implemented for all domestic light vehicles and heavy diesel vehicles on July 1, 2020 and July 1, 2021, respectively, and national 6b standard will be implemented for all vehicles on July 1, 2023. The exhaust gas treatment route of diesel vehicles under the sixth national standard must be upgraded, and molecular sieves with mobile sources are needed. Since the second half of 2021, under the influence of the destocking of national five vehicles, the early demand overdraft and the epidemic situation in some areas, the production and sales of domestic heavy trucks have dropped sharply. In the future, with the gradual recovery of domestic market demand and the implementation of the national 6b standard, the domestic demand for molecular sieves out of stock from mobile sources will increase significantly, while the emission standards for overseas diesel vehicles will also be gradually improved, which will lead to an increase in the demand for molecular sieves from mobile sources around the world.
The company's mobile source out-of-stock molecular sieve is expected to release quickly, and the development of high-end catalyst is smooth. The company is engaged in special molecular sieves and catalytic new materials products with high technical barriers, high added value and large domestic substitution space. The company is the exclusive supplier of BASF Mobile Source out-of-stock molecular sieves in the Asia-Pacific region. Due to the high production cost of BASF's own supporting equipment, the company will gradually become its global market supplier with an existing production capacity of 4100 tons / year. the new production capacity of 3000 tons / year is expected to be put into production in the second half of next year. The company has made continuous breakthroughs in molecular sieve catalyst products in the field of energy and fine chemicals, and titanium-silicon molecular sieve products and process packages for propylene oxide have been successfully delivered to the Satellite Group and entered the Jishen chemical supply system; titanium-silicon molecular sieve for epichlorohydrin is expected to break through major customers such as Wanhua Chemical and Yangnong Group, in addition, the environmental protection new materials and intermediates project raised by the company IPO is expected to be gradually completed and put into production in the second half of next year. The company issued a stock option incentive plan in October 2022, which is conducive to fully mobilize the enthusiasm of employees and ensure the realization of the company's development strategy and business goals.
Maintain the "highly recommended" investment rating. It is estimated that the return net profit of the company from 2022 to 2024 is 184 million yuan, 312 million yuan and 440 million yuan respectively, and the EPS is 1.05,1.77,2.49 yuan respectively. The current stock price corresponds to 44.1,26.0,18.5 times of PE, respectively, maintaining the "highly recommended" investment rating.
Risk tips: the concentration of customers, the crowded market of traditional fuel vehicles, and the lower-than-expected production of new projects.
