The company released its three-quarter report in 2023. In the first three quarters, the company achieved revenue of 351 million yuan (yoy+18.93%), net profit of 90 million yuan (yoy+31.12%) and non-return net profit of 79 million yuan (yoy+23.91%). Among them, Q3 realized revenue of 136 million yuan (yoy+31.41%,qoq+17.49%), net profit of 35 million yuan (yoy+47.81%,qoq+ 18.76%), and non-return net profit of 31 million yuan (yoy+37.79%,qoq+18.72%). The company actively promoted the iterative upgrading of matting agents and other products, and increased the promotion of high value-added products such as opening agents and antirust pigments.
The decline in the price of raw materials such as soda ash and concentrated sulfuric acid and the upgrading of product structure have led to an increase in profitability. (1) on the one hand, the prices of soda ash (solid water glass raw materials) and concentrated sulfuric acid, the main raw materials of the company's nano-silica products, have fallen since 2023 compared with the same period last year. According to Baichuan Yingfu data, so far, the average price of soda ash and concentrated sulfuric acid is 2525 yuan / ton and 181yuan / ton respectively, down 5% and 66% respectively from the same period last year. (2) on the other hand, the company actively promotes the iterative upgrading of matting agents, adsorbents and other products, and the market promotion of middle and high-end products such as openers and antirust pigments, which further increases the added value of the products, driving the company's nano new materials business profitability repair, Q3 company sales gross profit margin increased 2.84pct to 41.13%.
Bibase holds high to seize the opportunity of domestic substitution in the field of high-end application of silicon dioxide. By the end of 2022, the company has a production capacity of 14000 tons of nano-silica and 1000 tons of nano-alumina. The Anhui base under construction is expected to put into production 20, 000 tons of ultra-fine silica series products per year in November 2023. Hunan base annual production of 20, 000 tons of ultra-fine silica aerogel series is expected to be put into production in February 2024 After the dual base is put into production, it is expected to alleviate the bottleneck of the company's current silicon dioxide production capacity and seize the opportunity of domestic substitution in the high-end application field of silicon dioxide.
Maintain the profit forecast and maintain the "overweight" rating: the company takes matting agents and adsorbents as its foothold, adheres to the middle and high-end development direction, constantly optimizes the product structure and enhances the added value of the products. After the production capacity of Anhui base is put into production, the company is expected to further increase its market share in areas such as mouth openers and antirust pigments.
We estimate that the company's operating income from 2023 to 2025 will be 5.02,6.89 and 873 million yuan respectively, and its net profit will be 1.17,1.76 and 226 million yuan respectively, and 25X, 17x and 13x respectively for PE, maintaining the "overweight" rating.
Risk hint: project construction is not as expected; demand decline risk