Summary of the report:
Deep ploughing high-end nano-silica material. Since its establishment, the company has continued to explore the preparation process and production technology of nano-silica, taking matting agents and adsorbents as a foothold, gradually expanding the middle and high-end applications of silica, such as opening agents, antirust pigments, catalyst carriers, etc., widely used in coatings, inks, plastics and petrochemical industries. According to the China Inorganic Salt Industry Association, in 2020, the company's comprehensive strength and supply ranked first among domestic coating silica enterprises, and the sales volume of extinction silica products ranked first in the country.
The downstream demand of silicon dioxide is widely used, and the global market capacity exceeds 4 million tons. (1) Silicon dioxide has stable chemical properties, good physiological inertia, high temperature resistance, non-flammable, non-toxic, tasteless, good electrical insulation, downstream throughout paint, food, petrochemical and other chemical industries. According to Grand View Research, with the increasing demand for nano-silica in coatings, rubber, plastics and other industries, the global market capacity is expected to exceed 4 million tons by 2025. (2) from the supply side, overseas leaders monopolize the high-end market, domestic production capacity and output continue to increase, but the product structure is relatively low, and there is still a certain gap between the performance and versatility of middle and high-end products and overseas products. Due to the great differences in technical parameters and sales channels in the field of silica subdivision, domestic silica enterprises usually focus on a certain subdivision area, and in recent years gradually develop high value-added products to enhance the competitiveness of enterprises.
The platform expansion of middle and high-end new nano-materials, and actively seize the opportunity of domestic substitution. (1) the company has strong R & D strength, leading the formulation of two industry standards, product anchoring middle and high-end applications; 2) the company focuses on the high threshold and diversified layout in the field of silicon dioxide in technical process, customer certification and sales channels, extending from matting agents and adsorbents to middle and high-end products such as mouth openers, antirust pigments and catalyst carriers, and the industry competition pattern is good, which can bring sustained and stable profits. (3) the company presents the layout of nanometer powder platform, from silicon dioxide to alumina, the company plans a total production capacity of 80,000 tons of nano-silicon dioxide and 3000 tons of nano-alumina. After the project is put into production, it is expected to break through the bottleneck of the existing production capacity. Further enhance the market share of the company's segment, and actively seize the opportunity of domestic replacement of silicon dioxide in the high-end field.
Cover for the first time, give "increase" rating: the company takes matting agent and adsorbent as the foothold, adhere to the middle and high-end development direction, constantly optimize the product structure, and enhance the added value of the product. After the production capacity of Anhui base is put into production, the company is expected to further increase its market share in areas such as mouth openers and antirust pigments. We estimate that the company's operating income from 2023 to 2025 will be 5.02,6.89 and 873 million yuan respectively, and its net profit will be 1.17,1.76 and 226 million yuan respectively. For PE, it will be 29X, 19x and 15x respectively, covering for the first time and giving a "overweight" rating.
Risk hint: project construction is not as expected; demand decline risk.