Event
Recently, the company reorganized the board of directors and elected Ms. Han Jianhong as chairman and Mr. Wang Jianping as general manager.
The valuation of the company is low, the release of incremental capacity is imminent, the performance growth is sustainable, and the operation of each sector is updated as follows.
Main points of investment
The company is a high-quality diversified energy and chemical enterprise: with heat as the core, the company provides steam to the enterprises in the park and electricity and steam to the internal enterprises. After years of development, the initial formation of chlor-alkali, fatty alcohol (acid), sulfonated medicine and other major business plates.
The company is the only steam supplier in the park: as the only steam supplier in Jiaxing Port Zhapu Economic Development Zone, with the continuous development of the park, the thermal business still has a certain growth. The company's boilers have achieved ultra-low emissions and are less affected by environmental protection policies.
New 300000 tons of ethylene process PVC to promote liquid chlorine balance: the company has 296000 tons of caustic soda business, caustic soda business boom is good, but liquid chlorine has been difficult to balance. The company seizes the opportunity of steady decline in global ethylene prices to expand 300000 tons of ethylene process PVC, which not only achieves the balance of liquid chlorine, but also has strong profitability.
Sulfonated medicine series has become a new engine for the development of the company: the traditional sulfonation process has serious pollution, and the company innovatively launched continuous sulfonation of sulfur trioxide tubular reaction, which not only greatly reduces material consumption, the process is intrinsically safe, but also can adjust the proportion of adjacent positions. increase the production of counterpart products with high added value. The company's expansion of 30,000 tons has brought about the continued growth of high barrier business to the commissioning of neighboring and 4000-ton BA projects.
Hydrogen energy business is expected to open up the growth space: the hydrogen fuel cell industry chain has entered the accelerated growth stage since 2018, and the company has gradually laid out and improved the "hydrogen manufacturing, purification, liquefaction, transportation and hydrogenation station" industry chain. With the development of hydrogen fuel cell vehicle industry, hydrogen energy business is expected to open up room for growth.
Profit forecast and investment rating: we expect the company's net profit from 2020 to 2022 to be 1.154 billion yuan, 1.452 billion yuan and 1.773 billion yuan respectively, and the EPS is 0.81,1.01 and 1.24 yuan respectively. The current share price corresponds to 15x, 12x and 10x respectively, maintaining the "overweight" rating.
Risk hint: the production progress of the project under construction is lower than expected; the development of hydrogen fuel cell industry is not as expected.