Event: the company released the 2023 semi-annual report, during the reporting period, the company achieved revenue of 392 million yuan, year-on-year-41.05%, return to the mother net profit of 102 million yuan, year-on-year-46.61%. Q2 in 23, the company achieved revenue of 166 million yuan, year-on-year-50.78%, month-on-month-27%, return to the mother net profit of 47 million yuan, year-on-year-50.64%, month-on-month-14.13%.
The volume and price of the main products have fallen, and the performance of H1 in 23 years may have been bottomed out in stages. In 23, H1, the company's external sales of functional auxiliaries and phenylchlorosilane products were 4254.35 and 1264.44 tons respectively, compared with the same period last year,-32.86% and + 4.43% respectively, and the average selling price was 6.36 million yuan and 4.64 million yuan per ton respectively,-23.47% and-24.92% respectively compared with the same period last year. Revenue was 2.70 yuan and 59 million yuan respectively, compared with the same period last year,-48.68% and-21.60% respectively. In the first half of 2023, due to the impact of the slowdown in global economic growth, the downstream demand growth of the silicone industry was lower than expected, and the volume and price of the company's main products fell, resulting in pressure at the bottom of the company.
The company is the leader of silicone auxiliaries industry, and hexamethyldisilazane is the dominant product of the company. Hexamethyldisilazane is mainly used in silicone auxiliaries, pharmaceutical intermediates and semiconductor industries. Electronic grade hexamethyldisilazane can be used as a photoresist adhesive to modify the surface of silicon wafers and improve the corrosion resistance of photoresist. The company's existing hexamethyldisilazane production capacity of 6440 tons / year, another capacity under construction of 17000 tons / year (of which the electronic grade capacity of 2000 tons / year), the scale of production capacity is among the highest in the world. According to Business Research Insights, the global market for hexamethyldisilazane will continue to grow at an average annual compound growth rate of 6 per cent from 2022 to 2028. With the continuous expansion of the company's hexamethyldisilazane product scale, the company's product advantage is expected to continue to expand in the future.
Phenylchlorosilane is a national encouraging industry, which still has a lot of room for growth. Phenyl chlorosilane monomers are mainly used to produce phenyl silicone materials such as phenyl silicone rubber and phenyl silicone oil. Phenyl silicone materials have better high and low temperature resistance, weather resistance and radiation resistance than methyl silicone rubber and methyl silicone oil. According to the guidance Catalog of Industrial structure Adjustment (2023, draft) issued by the National Development and Reform Commission in July 2023, emerging organosilicon monomers such as phenylchlorosilane and materials such as phenyl silicone rubber and phenyl silicone resin are state-encouraged industries, and there is still room for growth in the future. The company has a production capacity of 15000 tons of phenyl chlorosilane monomer, and plans to build downstream phenyl silicone rubber, phenyl silicone oil and phenyl silicone resin products with a production capacity of 5000, 5000 and 6000 tons per year. In the future, the company still has a lot of room for growth in the field of new phenyl silicone materials.
Investment suggestion: we expect the company's net return profit from 2023 to 2025 to be 321max, 453 million yuan, EPS 1.42, 1.53, 2.01, respectively, and the corresponding PE is 16-15-12, considering that the company, as the leader of silicone auxiliaries, ranks in the forefront of the industry in terms of production and sales, and at the same time further expand the production capacity of superior products and deepen the layout of phenyl silicone downstream deep processing products. There is still room for future growth. Cover for the first time, giving a "buy" rating.
Risk tips: the progress of projects under construction is not as expected; the growth of downstream demand is not as expected; the price of raw materials has risen sharply; the international situation is tense and exports are restricted.