The company is one of the leading enterprises in the field of ethylene oxide fine chemical industry in China, focusing on the deep processing of ethylene oxide and building a complete industrial chain with polyether monomer, water reducer and crystal silicon cutting liquid as the main products. In 2013, the output of polyether monomer was 52000 tons, second only to Oak shares and optimization chemistry; the market share of superplasticizer was 5.87%, the second in the industry; at the same time, the company was also one of the first domestic enterprises to enter the production of crystal silicon cutting liquid, and its market share was second only to Oak shares.
Polycarboxylate superplasticizer has a broad growth space, and the cutting fluid benefits from the rebound of the prosperity of the photovoltaic industry. The company polyether monomer is used to produce the third generation polycarboxylate superplasticizer, and the demand for polycarboxylate superplasticizer keeps 30% compound growth: 1) the state reduces or forbids mixing concrete in urban areas, and the domestic commercial concrete market has entered a period of rapid development. The commercialization rate in 2013 is about 42%, at the level of 60% and 80% in most countries. China's commercial concrete market still has a lot of room for development. 2) the cost barrier of polycarboxylic acid superplasticizer has been broken, and the advantages of policy, environmental protection and performance will accelerate its replacement of naphthalene superplasticizer. At the same time, the prosperity of the photovoltaic industry has rebounded, and the demand for cutting fluid is expected to recover.
The company has the cost advantage of ethylene oxide integrated industry chain. The company has strong technical research and development strength, and has created a complete vertical industrial chain of polyether monomer, water reducer concentrate, polycarboxylic acid pumping agent and final product application, so as to enhance the cost advantage of downstream products and strengthen market competition. Maximize product profits. At the same time, the company is close to the raw material ethylene oxide production enterprise, and has the regional advantage of raw material supply.
The company plans to issue 17 million shares to the public, raising no more than 250 million yuan for the construction of 100000 tons of polycarboxylic acid superplasticizer and 30,000 tons of ethylene oxide derivatives project (completed and put into production in the first half of 2014), so as to alleviate the problem of insufficient production capacity and increase the company's market share.
We expect the company's operating income from 2014 to 2016 to be 1.224 billion yuan, 1.382 billion yuan and 1.606 billion yuan, 21.93%, 12.89% and 16.20% respectively, and the net profit attributed to the parent company is 71.7 million yuan, 92.65 million yuan and 170 million yuan respectively, up 36.1%, 29.2% and 15.1% over the same period last year. Based on the 6800 million shares issued, the EPS for 2014-2016 is 1.05,1.36 and 1.57 yuan, respectively. Considering the company's industry status and development prospects, the company will be given 25-30 × PE in 2014, with a target price of 26.25-31.50 yuan.
Risk tips: the risk of raw material supply and price fluctuations; the risk of ethylene oxide procurement concentration; the risk of intensified market competition.
