Key points of investment
Nano dispersion technology is the company's core competitiveness. The company is mainly engaged in R&D, production and sales of nano colorants, functional nano dispersions, electronic chemicals, computer tinting integration and other products.
The production capacity of nanoscale pigment pastes has been achieved in some fields such as cellulose solution colorants and high-quality paint pastes.
Commodity colorants have some industrial prospects, but there is a problem of limited space. Currently, the company mainly produces water-based commercial colorants, and the company's products are in a leading position in the fields of architectural coatings, latex and papermaking. Compared with toner or self-polishing colorant, commercial colorant pigments have high utilization rate, better comprehensive performance, better product dispersion, better storage stability, and better compatibility with the system. In this way, the product has obvious advantages in terms of coloring strength, color purity, vividness, and product uniformity and stability. However, the growth rate in fields such as architectural coatings, latex, and paper is weak. Overall, the market volume of colorants is relatively stable, and the share of commercial colorants has increased, but space for some industries is relatively limited.
Raw solution coloring is the most promising field of potential use for colorants. With the advancement of dye technology and the increase in environmental requirements, the chemical fiber industry began to prepare colored fibers directly by evenly dispersing colorants in spinning liquid. Raw liquid coloring has a wide range of applications and can be used to color fibers such as viscose, polyester, acrylic, spandex, and nylon.
E-commerce opens up the space of the future. In May 2020, the company announced that it plans to build a technology transformation project of 10,000 tons of special resin and special additives for high-frequency copper-coated plates. The specific solution is 2,000 tons of PCB oligomer solid resin, 3,000 tons of high-performance oligomer SMA resin, 2,000 tons of polymer polymer dispersant, 2,500 tons of functional additives, and 500 tons of photoresist pigment dispersion. The main product developed in this project, the oligomer parent resin, is mainly used for high-frequency copper-coated plate special resins, and photoresist pigment dispersions are mainly used in the field of color photoresist, all of which are fields where there is still a gap in the domestic industry.
Profit forecast and investment rating: We expect the company's net profit to be 89 million yuan, 108 million yuan and 162 million yuan respectively in 2020 and 2022, while EPS is 0.49 yuan, 0.60 yuan and 0.89 yuan respectively. The current stock price corresponding to PE is 62X, 50X and 34X respectively. Considering that the company's undiluted coloring complies with environmental protection policy requirements, electronic grade colorants have a first-mover advantage and are expected to achieve domestic substitution for high-end products, first coverage, and a “increase in holdings” rating.
Risk warning: The progress of the electronic grade pigment paste business is lower than expected; the risk that the construction progress of the new fiber plastic materials project is lower than expected; production pressure brought about by environmental inspection.