With the characteristics of environmental protection, light resistance, heat resistance, insulation and chemical stability, pearlescent pigments have rapidly replaced traditional organic pigments and metal pigments in some fields in recent years, and the market scale has been expanding. Global New Materials as a leading enterprise, with years of technology accumulation, market development and brand building, revenue has increased rapidly from 189 million yuan in 2017 to 670 million yuan in 2021, with a compound annual growth rate of 37.25% and a steady increase in gross profit margin from 43.01% to 49.96%. Profitability is growing.
Synthetic mica is in the lead in technology. Compared with natural mica-based pearlescent materials, synthetic mica-based pearlescent materials have more advantages in use temperature, safety, color, environmental protection and so on. The company has mature technology and large-scale mass production capacity in the synthesis of mica. It is relying on leading technology and efficient production capacity that the company can continue to consolidate its market competitiveness.
Domestic replacement is just in time. Pearlescent pigments have a wide range of applications, which can be divided into three categories: industrial pearlescent pigments, automotive pearlescent pigments and cosmetic pearlescent pigments. With the increase of awareness and acceptance of pearlescent pigments in the terminal market, the domestic market scale of high-end pearlescent pigments such as automobiles and cosmetics is also expanding, reaching 2.019 billion yuan in 2020. The high-end market has long been dominated by foreign companies with a first-mover advantage, but with better-quality synthetic mica-based pearlescent pigments, the company has also begun to be competitive in the high-end market, and domestic substitution is expected to accelerate.
The card position electricity new field, broadens the product application margin. In view of the insulation, heat resistance, corrosion resistance and stable performance of synthetic mica, the company relies on the advantages of synthetic mica technology and production capacity to actively explore the application of synthetic mica in other fields. At present, the technology of battery diaphragm material and insulation and thermal insulation material has achieved phased results, in which the synthetic mica-based battery heat insulation and flame retardant material has officially passed the product test, and its performance is much higher than that of plastic flame retardant board commonly used in the current market.
Investment suggestion: we expect the company to achieve a net profit of 200 million yuan, 262 million yuan and 349 million yuan from 2022 to 2024, corresponding to 0.17,0.22,0.29 yuan for EPS. Give the company a target of 25 times the 2022 PE, corresponding to the target price of 4.21 yuan per share, with a "buy" rating for the first time.
Risk hint: COVID-19 epidemic risk, raw material supply risk, market development risk.
