The leading position of PCB electronic chemicals is solid. The company has ploughed chemical reagents and PCB electronic chemicals for nearly 40 years, hole metallization copper plating, nickel gold plating, tin plating and browning solution and other products have been used in many aspects of the PCB process, there are no domestic competitors, fully enjoy the domestic substitute dividend. The company is the first in the industry to put forward the "PCB Manufacturing Technology overall solution" to provide customers with a full set of technical support for new plant planning, process design and equipment evaluation, production and control technical guidance, production problem analysis and solution, etc.
Collaborative application of PCB chemical core technology, layout of lithium materials and recycling, open up a new space for growth.
In 2017, the company officially entered the field of lithium materials and battery recycling, using PCB electronic chemicals multi-stage series extraction purification technology and crystallization control and other core technologies to produce high-quality lithium materials, establish and upgrade ternary precursors and waste battery recycling production lines. In 2018, the company carried out 14000 tons of lithium iron phosphate cathode project, echelon utilization project, and was selected into the first batch of power battery demonstration list, and carried out ternary positive electrode project and spodumene mineral processing project in 2019. In 2020, power battery recycling will usher in the outbreak, the company layout ahead of time, to achieve rapid growth.
Lithium battery recycling materials recycling back-end industrial chain circulation layout, cost advantages to ensure a stable increase in profitability.
Large fluctuations in 2019H1 raw material prices affect the company's performance, and the double rise in cobalt and nickel prices in the second half of the year will help to ease the price pressure. At the same time, through the circular layout of the back-end recycling industry chain of lithium batteries, the company uses raw materials such as nickel cobalt manganese sulfate and lithium carbonate recovered from waste batteries in ternary positive electrodes and lithium iron phosphate positive electrodes to achieve self-sufficiency of raw materials and prominent cost advantages. help to steadily improve profitability.
Financial forecasts and investment suggestions
The company continues to distribute lithium materials and battery recycling business, which is expected to form a tripod of electronic chemicals, chemical reagents and lithium materials. We are optimistic about the volume growth of the company's lithium materials and recycling business in 2020, the double rise of cobalt and nickel will help to raise the value of the company's products, and the cost advantage brought by the synergy will be more prominent. It is estimated that in the next three years, the company will achieve revenue of 1.56 billion yuan and net profit of 0.82 billion yuan and 254 million yuan respectively. According to the comparable company's average valuation of 33 times in 2020, the company was given a target price of 13.53 yuan, giving a "overweight" rating for the first time.
Risk hint
Industrial policy leads to the risk that demand falls short of expectations: the risk of increased competition in the lithium battery recycling industry:
Environmental regulatory risk: the three-yuan positive business development is not up to the expected risk.