Core ideas:
High-end membrane material leader, continuous expansion of production capacity to enhance the growth driving force. With 20 years of deep ploughing membrane industry chain, the company is one of the few domestic enterprises that simultaneously carry out reverse osmosis + nanofiltration membrane materials, membrane components pressure vessels, pressure tanks and other three categories of product research and development and large-scale production. By 2020, the company has a capacity of 800000 pressure tanks per year, 7.3 million meters per year of diaphragm and membrane components, and 40,000 per year membrane components pressure vessels. It is estimated that the production capacity of the project under construction will increase by 35% 53% after it is put into production in 2023. In 2021, the company realized revenue of 380 million yuan (+ 21% compared with the same period last year) and net profit of 50 million yuan (+ 8% year-on-year).
As of 2022Q3, the asset-liability ratio is only 13.5%, so there is a bright future for expansion.
Actively layout membrane high-end application downstream, technology, R & D advantages to build a moat. The company relies on the strength of high-quality membrane materials, with the business model of direct sales and secondary distribution, such as civil, municipal, water treatment and material separation and concentration, etc. ODM and distribution open overseas markets (45% of overseas revenue in 2021) and establish cooperation with BWT and other international well-known enterprises. The company takes the R & D of membrane materials as the core orientation, Chairman Xie has rich experience in chemical industry and membrane trade, and Dr. Cheng, the chief technical supervisor, joined the company in 2016 to lead the independent research and development of membrane materials. As of 2022H1, the company has 171patents, a number of indicators of membrane materials are in the forefront of the industry, and supporting equipment has obtained international authoritative certification.
"adsorption + membrane" is the method of extracting lithium from salt lake in China, and the domestic substitution of membrane segment is accelerated. Driven by the self-controllable background of lithium resources, the "adsorption + membrane" coupling process arises at the historic moment. Since 2019, the company has arranged the salt lake to extract lithium, and reached a strategic cooperation agreement with the earliest domestic system supplier engaged in salt lake lithium extraction, enlightening Qingyuan, to provide key components in the Qinghai Salt Lake Lithium Carbonate membrane separation project.
Since then, the company has actively carried out technical research and development, targeted at Tibet Salt Lake to develop low-temperature pretreatment nanofiltration membrane, according to the company's official website disclosed that it has been pilot-scale and running well. In addition, the company's self-developed high-salt brine concentrated reverse osmosis membrane can greatly reduce the original system process construction and operating costs.
Profit forecast and investment advice. It is estimated that the company's net return profit from 2022 to 2024 will be 0.52, 0.86 and 130 million yuan, corresponding to the latest closing price PE of 82.81, 50.01 and 32.86 times, respectively. The company's layout of salt lake lithium extraction is expected to continue to release, taking into account the comparable company valuation of 60 times PE in 2023, corresponding to a reasonable value of 29.55 yuan per share, with a "buy" rating for the first time.
Risk hint. The proportion of overseas sales is high risk; membrane technology competition risk; membrane market development risk.