Specializing in innovative small giants, leading color and functional nanomaterials service provider

The company focuses on R&D, production and sales of products such as nano-coloring materials, functional nano-dispersions, special additives, intelligent coloring systems and electronic chemicals. The products can be widely used in the fields of coatings, textiles, medical protection, photovoltaics and electronic communications, and is a leading domestic supplier of nano-coloring materials, functional nano-dispersions and special additives. Relying on its own R&D and technological advantages, the company has entered the field of new materials. It has now made progress in photoresists, new energy photovoltaics, and energy storage.

Leading company in paint colorants, fiber products are beginning to take shape

The company is a leading enterprise in the domestic colorant industry, mainly water-based paint colorants. Products such as architectural paint colorants and latex colorants are in a leading position in the downstream market segment. These products belong to the company's mature business segment. Currently, it has an annual design capacity of 44,000 tons, and a revenue scale of about 500 million yuan in the past 2 years. In the fiber field, the new fiber plastic material project (20,000 tons/year) was put into operation at 23H1; cooperation with the China Textile Institute and others has also progressed. The fiber solution coloring technology will greatly reduce carbon emissions in the production process, and the future market prospects are broad. Currently, ethylene glycol-based ultrafine pigment colorants for in-situ polyester polymerization have been tested, and mass production is expected in the future.

Innovation invigorates the company's development, and products are continuously upgraded

Using the Strategic Emerging Industries Research Institute as a strategic project incubation platform, the company focuses on the “optoelectronic color” and new materials industry, continuously promotes the localization process of products such as photoresist pigment dispersions, ultra-high purity electronic nanomaterials, high-frequency copper-clad plate special resins, etc., and strengthens strategic project reserves and new product research and development, effectively enhancing the company's core competitiveness. The main products produced domestically are:

a. Photoresist related: photoresist pigment dispersion (mainly used in the display field), production capacity is still under construction. The company has overcome SMA resin industrialization pilot technology, and some products have completed pilot production tests and obtained verification and approval from some customers.

b. Hydrocarbon resins: The high-purity UV monomers and electronic hydrocarbon resins laid out by the company are all upstream of the PCB industry. Specifically, the production capacity is 500 tons of electronic-grade hydrocarbon resin/9000 tons of UV monomers.

According to our estimates, after the production capacity of the above products is fully reached, the output value will increase by more than 2 billion yuan. If a net interest rate of 15% is calculated, it is expected to bring the company a net profit increase of more than 300 million yuan over the next 3 years.

Investment advice: The company will soon enter a year of production capacity implementation and performance contribution, and there have been breakthroughs in domestic substitution for some products. We expect the company's net profit to be 17.57 million yuan, 190 million yuan, and 350 million yuan respectively in 23-25 years. Referring to comparable companies, we believe that the 24-year 22 PE valuation is reasonable. The target price is 12.9 yuan/share, covering the first time, and giving it a “buy” rating.

Risk warning: risk of fluctuations in raw material prices, management risks due to scale expansion, risk of proposed changes in control, fund-raising projects falling short of expectations