Ethylene oxide fine processing leader to create vertical industrial integration. Cologne Refining is mainly engaged in the R & D, production and sales of fine chemical new materials with ethylene oxide as the main raw material. At present, the company mainly uses polyether monomer-polycarboxylic acid series of high-performance superplasticizer products, supplemented by crystal silicon cutting liquid and other kinds of ethylene oxide derivatives, and has formed an industrial chain with vertical integration of raw materials, finished products and application services. it is a leading enterprise in the field of deep processing of ethylene oxide derivatives.
The bottom of the superplasticizer industry rebounded, the company will fully benefit. As one of the important auxiliaries in modern concrete engineering, polycarboxylate superplasticizer has excellent performance. with the increasing attention to environmental protection, it is expected to achieve a comprehensive replacement of naphthalene superplasticizer. In addition, in the future, with the acceleration of urbanization and the continuous construction of national infrastructure projects, the market potential of polycarboxylic acid superplasticizer products is huge. If estimated at a growth rate of 15%, the national product sales volume will reach 5 million tons by 2017. We believe that polycarboxylic acid superplasticizer has reached the bottom of the industry, and the polycarboxylate superplasticizer industry will gradually pick up as the price of raw material polyether monomer stabilizes in the first half of 2016. If the project of 100000 tons of polycarboxylic acid superplasticizer for high performance concrete raised by the company in 2014 goes smoothly, the production capacity is expected to be greatly increased, and the company as an industry leader will fully benefit.
In the middle and lower reaches of the epitaxial M & A layout, the performance of 2016 is expected to improve rapidly. During the 13th five-year Plan period, infrastructure will still be the focus and focus of government investment, which brings great opportunities for the development of the company's concrete admixture business. In order to implement "to become the largest integrated supplier of vertical industrial chain in concrete admixture industry"
In April 2016, the company injected high-quality assets into the company through the acquisition of Sichuan Hengze, realizing the docking of the industrial chain, enhancing the depth of the layout of the middle and lower reaches of the industry, and expanding the business area of the company's polycarboxylate superplasticizer. Help to quickly enhance the company's competitiveness in the middle and lower reaches of the polycarboxylate superplasticizer industry.
We believe that the industrial synergy generated by this merger will greatly improve the company's profitability and anti-risk ability, and the company's performance is expected to improve rapidly in 2016.
Actively develop new products and cultivate new growth points in the future. While upgrading the core business of superplasticizer series products, the company is actively cultivating and developing new business, such as environmental protection auxiliaries, textile printing and dyeing auxiliaries and other fine chemical products. The powder water reducer and denitrification catalyst developed by the company in 2015 have been put into production, of which denitrification catalyst has been sold with sales of 168.06 cubic meters and operating income of 4.4948 million yuan. We believe that with the gradual use of the future, the new products will become a new profit growth point.
No rating for the time being. The connotation and extension development of the company is carried out simultaneously, and the long-term development is worthy of active attention. We estimate that the EPS of the company from 2016 to 2018 is-0.38,0.33 and-0.29 yuan respectively. Considering that the company's new production capacity of superplasticizer has not yet been put into production, the new business development is still in its infancy, and the company's performance is still at a low level, so it will not be rated for the time being.
Risk hint: the risk of product price fluctuation; the project does not meet expectations.