Steadily increase and consolidate the leading position of environment-friendly chemical products. The company is an environment-friendly chemical enterprise producing environmentally friendly organic solvents, powder coating monomers and high temperature resistant environmental plasticizers. At present, it has a production capacity of 300000 tons of acetate, 60,000 tons of trimellitic anhydride and its derivatives and about 110000 tons of other products. In recent years, the annual production and sales of the company's main products are more than 300000 tons, which is in the leading position in the industry. The company's non-public offering project plans to raise 527 million yuan for new methyl acetate, bis-trimethylol and other total production capacity of 400000 tons. New projects are expected to be completed in 2018 and 2019. At that time, the company is expected to add 3 billion yuan in revenue and 139 million yuan in profit. The leading position of environmental protection chemical products has been more consolidated.
Environmental regulation is becoming more and more stringent with double benefits. The downstream of the company's main products is the paint industry. Under the background of increasingly stringent environmental protection requirements, on the one hand, the permeability of environmentally friendly solvents will continue to increase, and the demand for environmentally friendly chemicals is expected to continue to grow; on the other hand, the production capacity of "messy" enterprises may be shut down. the cycle of environmental assessment and approval for new projects may be lengthened, supply may shrink, and prices of some products have already begun to rise. As a leading enterprise, the company's production capacity is expected to rise in both volume and price. According to the company's output in recent years, under the condition that the price of raw materials remains unchanged, the net profit of the company is expected to increase by 254 million yuan for every 1000 yuan per ton of products.
Invest in sea-based new energy and participate in lithium electricity feast. The company invested 102 million in 2016 to acquire a total of 30.86% of the shares of sea-based new energy, making it the largest shareholder of the latter. Hai-based New Energy is an enterprise engaged in the technical development, manufacture and sales of lithium batteries and battery packs. At present, it plans to invest 2 billion yuan to build a fully automatic lithium battery production line with an annual capacity of 2 billion watt-hours in two phases. The first phase of the project with an annual output of 1 billion watt-hours has entered the stage of installation and commissioning in May 2017. Sea-based long-term planning capacity of 6 billion watt-hours, while supporting the construction of battery pack PACK production line. The scheduled commissioning of new energy projects will become a new business growth point for the company.
Join hands to develop graphene. In June 2017, the company signed an agreement with Beijing Graphene Technology Research Institute (BGI) and Shenzhen Qianhai New Energy to conduct research on graphene lithium battery cathode materials and graphene new principle battery technology. BGI is a graphene research institution established by the Beijing government in conjunction with Peking University and China National Building Material Group. It has strong technological research and development advantages. It will combine Baichuan's rich experience in chemical manufacturing to speed up the transformation of graphene scientific and technological achievements. Graphene business is a potential business growth point for the company.
Profit forecast and rating
We predict that the EPS of the company in 17-19 is 0.25,0.36 and 0.52 yuan respectively, corresponding to the closing price of 11.81yuan on August 22nd, and the dynamic Pmax E of the company is 47 times, 33 times and 23 times respectively. The company's production capacity continues to expand, and the volume and price of its main products are expected to rise in the context of stricter environmental protection. at the same time, the company is also entering new areas such as new energy and graphene, laying the groundwork for future performance growth. Give the company a "buy" rating for the first time.
Risk hint: the risk of falling product prices, the risk of falling lithium battery prices