5G ink leader, epitaxial enters lithium battery materials
The company is mainly engaged in R&D, production and sales of electronic chemicals such as special inks and special coatings. It is one of only two domestic companies that master special ink technology for 5G PCBs. Furthermore, the company merged with Dongguan Hangsheng in January 2019 to lay out high-performance lithium-ion battery electrolytes.
5G base station PCBs require high-frequency special ink. The company has a first-mover advantage. 5G communication equipment has a high working band, and higher frequencies also pose new challenges to PCB material performance. Traditional PCB ink materials have high Dk and Df and cannot meet the performance and power consumption and heating requirements of high-frequency transmission in the 5G communication era, so low Dk and low Df materials are the key. Currently, only domestic companies and Rongda Optical have announced that they have mastered Low Dk/Df special ink for 5G communication, which has a first-mover advantage. The PCB market space for 5G base stations is huge. It is conservatively expected that the density of 5G macro-built stations in China will be at least 1.5 times that of 4G base stations, with a total of at least 6 million. The peak PCB value period for 5G macrobase stations is expected to reach 27.9 billion yuan in 2022. The company previously had an ink production capacity of 6,500 tons, and the additional production capacity of 8,000 tons for the fund-raising project entered the trial production and commissioning stage on October 24, 2019, and will gradually contribute to performance in the future.
Deploy UV paint for epitaxial expansion to expand future growth space
Traditional paint production requires a large amount of organic solvents. When the film is applied, organic solvents evaporate to form volatile organic compounds (VOC), causing environmental pollution. Against the backdrop of stricter and tightening environmental protection, comprehensively promoting the development of environmentally friendly coatings has become an irreversible trend. Although the current main water-based paint can achieve low VOC emissions, the curing speed is slow, the hardness and anti-aging ability are poor, and the overall cost is high. UV curing coatings cure extremely fast due to their film-forming mechanism; in addition, their surface physical properties are excellent, and they are superior to other paint varieties in terms of hardness and scratch resistance. Because UV curing coatings can be fully recycled or greatly recycled, costs can be reduced to a large extent, and are expected to become the next generation of star environmentally friendly coatings.
Laying out photoresists, advanced technology goes one step further
The company commissioned Taiwan Guangzhi to research and develop the “UV orthographic photoresist for flexible printed circuit board substrates, etc.” technology project. The product can be applied to high-resolution ultraviolet orthographic photoresists in the fields of printed circuit board flexible substrates, LCD and LED display panels, semiconductor components, etc., and the product can be imaged using water-based imaging solution. On the evening of December 12, 2019, the company announced that the first batch of products in the project had achieved R&D results and was successfully tested by customers in Taiwan. The performance and quality of the product greatly met the customer's usage needs, and is now in the process of technology transfer and preparation of the second batch of R&D products.
The company's net profit returned to the mother in 2019, 2020, and 2021 is expected to be 0.88, 124, and 149 million yuan respectively, corresponding to 47, 33, and 28 times PE, maintaining the increase rating.
Risk analysis: capacity absorption risks of fund-raising projects, production safety risks, trends related to the epidemic