The company is a food-grade carbon dioxide leader in China. The company uses petrochemical tail gas and torch gas as raw materials to produce food-grade carbon dioxide, hydrogen and fuel gases. Customers cover many well-known food enterprises such as Coca-Cola Company and Hangzhou Wa Group, as well as large chemical enterprises such as China Petroleum & Chemical Corp, CRRC Corporation Group and Sany heavy Industry. Through years of technology accumulation, the production of special gases (neon, xenon, krypton and mixed gas) has high quality, has been a number of international head enterprises related certification or audit, high customer recognition. In 2022, the company's electronic special gas / carbon dioxide / hydrogen revenue accounted for 30.4%, 28.8% and 20.1%, respectively.
To expand the high value-added electronic features, the second growth pole is expected to continue to release volume. In the global electronic special gas industry, Linde, Liquide Air, Dayangri Acid and Air Chemical occupy the main market share with their strong technical service capacity and brand influence. In recent years, the R & D strength of domestic professional gas service providers has been continuously improved, and there has been a gradual breakthrough in the field of subdivision of electronic special gas. Since 2018, Camet Gas has actively expanded the field of electronic special gas, and its main products are electronic grade high purity gas, hydrogen chloride reference molecular laser mixed gas, fluorine reference molecular laser mixed gas and dynamic laser mixed gas. Upward, the company through the Baling Sinopec air separation project, Yizhang project to gradually achieve their own raw materials, and constantly improve the cost advantage. Downwards, the company ensures product quality stability and supply stability through all aspects of production, testing and transportation. With the company's customers have passed the certification, the company's electronic special gas has gradually entered the volume stage. The company invests 580 million yuan in Yizhang Camet special gas project, which is expected to be completed by the end of 2024, and the product category will continue to be rich.
Traditional business, carbon dioxide steady growth, hydrogen peroxide has become a new growth point. Carbon dioxide, the company currently has 560000 tons of food-grade carbon dioxide production capacity. In order to further improve carbon dioxide supply capacity and weaken the impact of upstream enterprise shutdown on the company, the company has expanded its production capacity of 600000 tons / year of carbon dioxide in Jieyang in two phases, and the first phase of 300000 tons / year is expected to be put into production in 2025. Carbon dioxide leading position is further consolidated. Hydrogen peroxide, due to its unstable chemical properties and explosive particularity, has a certain economic sales radius (within 500 km). From the perspective of regional distribution, hydrogen peroxide production capacity in China is mainly concentrated in East China and Central China, accounting for 65% and 11.3% respectively. The company uses hydrogen from Guangdong Petrochemical and Fujian Union Petrochemical as raw materials to build 300000 tons / year industrial and electronic grade hydrogen peroxide in Jieyang and Fujian respectively to meet the hydrogen peroxide demand in South China.
Investment suggestion: the company focuses on the recovery and utilization of chemical / petrochemical tail gas, has become the leader of carbon dioxide in food, and continues to expand the product matrix to electronic special gas and hydrogen peroxide. It is estimated that the company's net profit from 2023 to 2025 will be 1.75 yuan 2.88 / 376 million yuan respectively, covering it for the first time and giving it a "buy" rating.
Risk hint: the progress of customer certification is not as expected; the shutdown of petrochemical enterprises affects the company's production capacity; the project is not as expected.