Investment logic
The company is a third-party petrochemical warehousing and logistics business: the main petrochemical industry warehousing and loading and unloading business. At present, the total storage capacity in Zhuhai is about 620000 cubic meters, the annual cargo throughput is more than 10 million tons, and the total storage capacity in Yangzhou is about 350000 cubic meters. Last year, it acquired a 70% stake in Jin Tengxing to expand the central China market and further expand across regions.
The main industry is in the bottom area and will hit bottom and pick up: the development of petrochemical logistics is mainly promoted by the petrochemical industry. At present, the domestic economic growth is slowing down, the downstream demand is weakening, coupled with the low prices of crude oil and petrochemical products, the inventory willingness of traders is declining, and the market competition is fierce. The downturn in the industry has pulled down the company's unit tank capacity income, while depreciation expenses have maintained rapid growth, the company's performance is facing multiple pressures, and the main business is in the bottom area. With the rebound of oil prices, the capacity utilization of Zhuhai refining and chemical enterprises has rebounded, the Huafeng petrochemical project in the region will be launched in the third quarter, Yangzhou and Wuhan projects will also contribute to revenue, and the main industry will hit bottom and pick up.
Cooperate with Green Energy Hi-Tech to expand LNG business: the company has reached a LNG project cooperation intention with Green Energy Tech to carry out LNG liquefaction plant, LNG storage and transportation, LNG filling station and other businesses. The market space of LNG industry is huge, and cooperation will help the company to improve its industrial layout and improve its profitability.
Equity participation in emerging industries venture capital fund, epitaxial expansion is expected: 44 million investment in Hua Xin Ruicheng, holding 22%. 20 million yuan is invested in Yueke Tousi, with a shareholding ratio of 10%. Huaxin Ruicheng is led by Luxin Venture Capital and Guangdong Science and Technology Department wholly-owned Yueke Group, both of which have rich project resources, venture capital experience and mature team. While contributing investment income, equity participation helps the company to carry out project reserves and future mergers and acquisitions. The company has abundant funds (fixed additional financing of 200 million, own capital of 200 million, and issuable corporate bonds of 400 million). The debt ratio is only 27%, and extension expansion can be expected.
Fixed increase completed, capital operation open space: this fixed increase of about 220 million yuan, the participants are major shareholders, management, employees and long-term partners (such as Luxin Venture Capital), etc., the interests are highly consistent, after raising funds in place, the capital operation space such as extension mergers and acquisitions will be opened.
Investment suggestion
The company's main business bottomed out, transformed to expand LNG business, participated in venture capital funds, increased capital operation space, extended expansion can be expected, give buy rating.
Valuation? Considering the investment income and epitaxial expansion brought by equity participation in venture capital funds, it is estimated that EPS 0.17max 0.34max 0.63 yuan in 1517, giving the company a target price of 40.00 yuan in the next 6-12 months. Risk? The prosperity of the petrochemical industry continues to decline, and the transformation and epitaxial expansion are slower than expected.