Main points of investment:
Upgrading of environmental protection, huge market space for water treatment chemicals
The National Development and Reform Commission and the Ministry of Housing and Construction have put forward higher water quality requirements for environmental sewage treatment. In the next three years, the global water treatment market in the areas of industry / production, municipal / drinking, sewage / wastewater, and seawater desalination is expected to grow at an average annual compound growth rate of 6.8%, 6.4%, 6.1% and 4.3%, respectively. With the upgrading of environmental governance, small and medium-sized pharmaceutical production enterprises that do not have the advantage of scale and environmental protection are gradually marginalized. As the leading enterprise in the industry, the company matches the new production capacity and grabs a larger market share.
The company has a full range of water treatment pharmaceuticals, and its domestic exports go hand in hand with a rich range of products, with an existing production capacity of 265000 tons / year. It is one of the largest domestic production scale and the most complete varieties and specifications of water treatment pharmaceuticals, mainly including three series and multiple subdivided varieties. The company's strategic positioning is clear, do not do terminal and water treatment engineering services, to avoid conflicts of interest with customers. At home, we make use of brand advantages to expand the market, and foreign countries give full play to the mutual trust between import and export companies and long-term cooperative customers, so as to achieve a balance between domestic and foreign markets.
The fund-raising project has been steadily implemented and the output has been gradually released to create a 280000-ton water treatment agent and industrial extension series products raised by Taihe Company, including PBTCA workshop, spray drying workshop, crystal second workshop, dichloropropanol, acetic anhydride, tetraacetylethylenediamine and supporting public works facilities have been completed, the approval of trial production has been obtained, and the output is expected to be put into production within 2020, and the output will be gradually released. Gradually release production over the next two years.
Profit analysis and valuation
It is estimated that the company's revenue from 2020 to 2022 is 18.56,23.19 and 3.015 billion yuan respectively, the net profit is 2.61,3.28 and 433 million yuan, and the earnings per share are 1.21,1.52 and 2.01 yuan respectively, and the corresponding PE is 19.8,15.8 and 11.9 times respectively. According to the price-to-earnings ratio of similar companies in the market, the target price is 30.25 yuan, and the "recommended" rating is given for the first time.
Risk hint
Exchange rate fluctuates sharply; the output of the project falls short of expectations; production safety accidents; the risk of regulatory violations.
