The market share continues to be high, and the leading position of functional silane is solid. Jianghan Xincai, which entered the silane field in 1995, is the first enterprise in China with a complete silane production chain. For more than 20 years, the company has developed 14 series of more than 100 varieties of products, and its annual production capacity has increased to 92000 tons by the end of 22, and has been promoted to the global functional silane leader, with the first domestic market share and the third global market share for six consecutive years.
Maintain high profitability at the bottom of the industry cycle. In 18-22, the company's net interest rate increased by 2.31 PCT per year. Since 23 years, the industry price has gradually bottomed out. When the industry net interest rate dropped sharply, 23H1's net interest rate increased by 0.28pct to 31.82% compared with the same period last year, rising against the trend, reflecting the company's strong business ability.
Strong R & D and high quality cast core competitiveness. 1) the technology is advanced, and the product quality and structure are excellent. The company is good at R & D. as of 23H1, there are 62 invention patents, which is much higher than that of comparable companies. 2) bind overseas high-end customers, global sales of products, across the cycle. The company's core product sulfur silane quality is famous all over the world, bound to Michelin, Pirelli, Goodyear and other high-end customers, the standard of sulfur-containing silane products for green tires has essentially become the entry inspection standard of several major international tire enterprises, with a national market share of 47% in the past 21 years. From 19 years to 22H1, the top three customers of the company are all foreign customers, and the overseas business income of 23H1 accounts for 53%. Global sales help the company span the cycle.
Strong chain to expand the chain, open the performance ceiling. 1) strong chain: in 23-25, the company will add 60,000 tons of functional silane, expand production and increase scale effect, and then configure 60,000 tons of trichlorosilicon to achieve complete chlorine utilization cycle and reduce costs. 2) chain expansion: the company has made a breakthrough in the chemical synthesis of ultra-high purity 6N quartz sand by hydrogen tetrachloride, which can be used in the semiconductor field and break the foreign monopoly. The company plans to invest 450 million yuan in the annual production of 2000 tons of high-purity quartz sand project has been under construction, is expected to be put into production in the middle of 25 years.
Investment advice: the company maintains high profitability and steadily expands production to provide increment. We estimate that the return net profit of the company from 23 to 25 years will be RMB 8.08, 9.32, respectively. With reference to the valuation of the comparable company, and considering that the company is the leader in the functional silane industry in China, the company is valued at 16 times PE for 24 years, corresponding to the target price of RMB 39.93 in 2024. Cover for the first time, giving a "buy" rating.
Risk tips: production is not up to expectations, price and cost fluctuations, demand is not as expected, exchange rate fluctuation risk.