This report is read as follows:
The company is the industrial platform for the transformation of scientific and technological achievements of Tsinghua University, and has gradually developed into a comprehensive operator of industrial gases and basic chemical raw materials. LCD materials will benefit from the localization of key semiconductor materials, covering them for the first time and giving them a neutral rating.
Main points of investment:
Cover for the first time and give a neutral rating. The company's MTO process cost advantage is significant, and it will continue to contribute to the performance increment in the future. It is estimated that the EPS in 2019-2021 will be 0.32max 0.38max 0.45yuan. With reference to the DCF valuation method, the company will give the target price of 16.11yuan, covering for the first time and giving it a "neutral" rating.
The company is the industrial platform for the transformation of scientific and technological achievements of Tsinghua University. The company's business includes clean energy, functional materials, medical and health, life technology four sectors, the main income from Nanjing Chengzhi clean energy, Chengzhi Yonghua display materials, the main production capacity is: industrial gas 833,000 tons / year, ethylene 117,000 tons / year, 175000 tons propylene / year, butanol 250,000 tons / year, TFT-LCD liquid crystal materials 100tons / year. 2019H1 chemical products account for 83% of revenue, with a gross profit margin of 31.12%.
Nanjing Chengzhi is a comprehensive operator of industrial gases and basic chemical raw materials. Nanjing Chengzhi is the only industrial gas supplier in Nanjing Chemical Park. Industrial gas and ethylene are sold directly to enterprises in the park, and the demand for products is stable. The UOP/MTO+OCP route adopted by the company's MTO has high conversion rate and good selectivity, and the 600,000 t / a plant has been trial-produced in June 19, which will effectively supplement the needs of East China C4 deep processing enterprises. Butanol and octanol are mainly used in the field of coatings and plastics, respectively. In recent years, the output of coatings and plastics has maintained positive growth, and the prices of butanol and octanol are expected to continue to rise in the peak season.
Chengzhi Yonghua is a leading liquid crystal display material enterprise in China. Chengzhi Yonghua has developed more than 800 series of mixed liquid crystals and more than 2000 single liquid crystals. The annual production capacity of liquid crystal monomers, intermediates and TFT mixed crystals has reached the leading level in China. LCD's leading position in the field of large-size panels will guarantee the demand for liquid crystal materials. At the same time, the transfer of LCD panel capacity has led to a rapid increase in domestic TFT mixed crystal demand, with a localization rate of only 33% in 2018 and will continue to increase in the future.
Risk hint. The price of chemical products is falling and the demand for liquid crystal display materials is lower than expected.
