Main points of investment

On Thursday (July 6), Kangpeng Technology, a listed company of Science and Technology Innovation Board, made an inquiry.

Kangpeng Technology (688602): the company focuses on R & D, production and sales of fine chemicals, mainly for new materials, medicine and pesticide chemicals. From 2020 to 2022, the company achieved operating income of 629 million yuan / 1.005 billion yuan / 1.238 billion yuan, YOY of-8.45%, 59.67%, 23.25%, 21.68%, respectively, and realized net profit of 90 million yuan / 134 million yuan / 181 million yuan, YOY of-36.14%, 48.51%, 34.68%, and 8.50%, respectively. During the latest reporting period, 2023Q1 achieved an operating income of 219 million yuan, down 28.77% from the same period last year, and a net profit of 22 million yuan, down 58.70% from the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit of 60 million yuan to 65 million yuan from January to June 2023, changing from-32.83% to-38.00% over the same period last year.

Investment highlights: 1, more than 20 years of deep ploughing, the company has entered the downstream areas of well-known customer supply system. The founder of the company, Dr. Yang Jianhua, graduated from the Shanghai Institute of Organic Sciences of the Chinese Academy of Sciences and was the deputy general manager and chief engineer of the New Materials Base of the Chinese Academy of Sciences. The company has been engaged in fine chemical industry, especially in the field of fluorine-containing fine chemical industry for more than 20 years, and has mastered the core comprehensive organic synthesis technologies such as fluorination technology and carbon-carbon bond coupling technology. The company's main customers in the field of new energy battery materials cover well-known battery materials or electrolyte manufacturers and traders at home and abroad, such as New Zebang, Divine Materials, and so on. In the field of display materials, the company has become the core supplier of fluorinated liquid crystals in the mixed crystal industry, ranking first and second in the world, Merck of Germany and JNC of Japan. At the same time, it has established a cooperative relationship with 800 million domestic LCD manufacturers, Jiangsu Hecheng and so on. In the field of pharmaceutical chemicals, the company began to supply pharmaceutical intermediates to Eli Lilly and Co of the United States as early as 1997, and began to supply Merck & Co Inc with the key intermediates of cetaletine phosphate tablets in 2004, which is currently the second largest oral diabetes drug in the United States. the pesticide company is the core supplier of acetamiprid original research company Cao Da of Japan. 2. In the future, the production capacity of display materials and new energy battery materials is expected to further consolidate the market share. In the field of display materials, the company has a global market share of about 50% in fluorine-containing single crystals in 2021. At the end of 2022, the construction project of Lanzhou Kangpeng new liquid crystal display materials and fluorine-containing new materials production base is under construction of 121 million yuan, accounting for about 70% of the total projects under construction. with the consolidation of the production line in the future, the company's market share in the single crystal field is expected to be further consolidated. In the field of new energy battery materials, the company is the first enterprise in China to independently research and develop and mass produce new electrolyte solute lithium salt LiFSI of new energy batteries. Under the sales caliber, the LiFSI market share in 2021 is 10.39%. The fund-raising project of 255,000 tons / year battery materials is expected to build the largest battery material production base in the company system, helping to further improve the market share.

Comparison with listed companies in the same industry: comprehensive consideration of business and product types, select Wanrun shares and Swiss New Materials in display materials industry; Divine Materials, New Zebang, Yongtai Technology and Huasheng Lithium Power in New Energy Battery Materials and Electronic Chemicals Industry; Stryker and Sibao Technology in silicone Materials Industry And Zhongxin fluorine materials, Lianhua technology, medicine stone technology, Chengda pharmaceutical industry in the pharmaceutical and pesticide chemicals industry are comparable listed companies of Kangpeng technology; from the above comparable companies, the average income in 2022 is 5.149 billion yuan, the comparable PE-TTM (arithmetic average) is 34.24X, and the sales gross profit margin is 34.70%; comparatively speaking, the company's revenue scale and gross profit margin are lower than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.