Event description
On November 21, the company issued a notice revising the Raw material purchase contract signed with BASF in 2017, stipulating the new basic price, purchase volume range, price formula and so on.
The sales scope is extended to the whole world, and the mobile source denitrification molecular sieve business is expected to continue to expand the mobile source out-of-stock molecular sieve sales area to the whole world, and the performance is expected to continue to increase. This agreement adds to the product types of the raw material procurement contract in 2017, and agrees on a variety of product procurement items, including upgraded and iterative mobile source denitrification molecular sieves; the sales prices of many products will be adjusted according to the purchase volume range, which sets a number of quantity ranges from 0 tons to 6000 tons and above, and the product sales price for the current year will be determined according to the predicted purchase quantity at the end of the year before last. It has agreed on the price adjustment mechanism when the exchange rate and raw material costs change greatly, and the product sales area has been expanded from the original Asia-Pacific region to the global scope. BASF is a world-renowned chemical enterprise and one of the main suppliers of denitrification catalysts in the world. The revision of the agreement enables the medium catalyst to obtain orders outside the Asia-Pacific region. It is BASF's recognition of the quality and production capacity of the company's mobile source denitrification molecular sieve products, which is conducive to enhancing the company's market expansion power and comprehensive competitiveness in the industrial catalyst industry. The performance is expected to achieve greater growth.
Equity incentive shows confidence, molecular sieve catalyst head enterprises can be released in the evening of October 20, the company issued an equity incentive plan, the number of stock options to be granted is 8 million, accounting for about 4.54% of the company's total equity of 176 million shares at the time of this incentive plan announcement, of which 6.43 million were granted for the first time, accounting for 3.65% of the company's total equity at the time of this incentive plan announcement. 157.00 million copies are reserved, accounting for 19.63% of the total rights and interests granted this time, and the exercise price of stock options granted for the first time under the incentive plan is 31.80 yuan per share. The assessment year for the first grant of stock options under this incentive plan is three fiscal years from 2022 to 2024, which is based on net profit in 2021. In 2022, the growth rate of net profit or cumulative net profit is more than 30%. The proportion of exercise at the corporate level is 100%, the growth rate of net profit in 2023 is more than 70%, and the proportion of corporate exercise is 100%. The growth rate of net profit in 2024 is more than 150%, and the proportion of corporate exercise is 100%. According to the condition of the highest proportion of exercise, the company is expected to achieve a net profit of 174 million yuan, 228 million yuan and 335 million yuan respectively from 2022 to 2024. The company's equity incentive fully demonstrates the company's performance confidence.
HPPO method production expansion superimposed rich product matrix provides performance growth momentum HPPO method will enter the production expansion cycle in 2022, with an estimated increase of 1.85 million tons of production capacity, the company has formed a stable cooperation with satellite chemistry, as the HPPO method production capacity has been put into production, the company's titanium-silicon molecular sieve is expected to achieve rapid growth. At the same time, the core products and technologies of the company are independent research and development. In addition, the company has signed strategic cooperation agreements with many well-known universities in China. This R & D model of "independent research and development, supplemented by industry-university-research cooperation" can give full play to the synergy. At present, the company has formed a number of technical reserves such as MTO and MTP catalysts, while actively arranging fixed source denitrification molecular sieves, ethylene glycol catalysts, photocatalysts, m-cresol and other fields. The company's oxygen production molecular sieve technology research is currently in the small-scale stage. The two major fund-raising projects, "Special Molecular sieves, Environmental Protection Catalysts, Automobile exhaust purification Catalysts industrialization Project" and "Environmental Protection New Materials and Intermediates Project" are also in steady progress, and are expected to be put into production in 2022 and 2023 respectively. As the company's projects have been put into production, the rich product matrix will also provide the company with performance growth momentum in the future.
Investment suggestion
We expect the company's net profit from 2022 to 2024 to be 1.81,2.84 and 410 million yuan respectively, with year-on-year growth rates of 35.4%, 56.9% and 44.4%, respectively. The corresponding PE was 42, 26 and 18 times, respectively. Maintain a "buy" rating.
Risk hint
(1) the progress of project production is not as expected.
(2) the product price fluctuates greatly.
(3) the risk of force majeure of the device
(4) risk of change in environmental protection policy
(5) the growth risk of excessive concentration of customers.
