Summary of the report:
Functional auxiliaries are given priority to, supplemented by phenylchlorosilane, to create a leading company in the field of silicone subdivision. The company's functional auxiliaries include hexamethyldisilazane, vinyl double heads, silicone ethers and other products. Phenylchlorosilane includes phenyltrichlorosilane and diphenyldichlorosilane. After 30 years of continuous research and development and technical investment, the company has become a leader in the field of silicone functional auxiliaries. The company has excellent product quality and stable performance, and its application has been extended to more than ten high-precision fields, such as medical treatment, electronics, aerospace, new energy and so on. At present, it has maintained stable cooperative relations with large silicone production and pharmaceutical companies such as Maitu of the United States, Xinyue of Japan and Sun Pharmaceutical of India.
Deep ploughing intermediate link, functional auxiliaries have a wide demand and many bright spots. The company has developed a production capacity of 12000 tons of functional auxiliaries around the intermediate link, and the representative products are hexamethyldisilazane and vinyl double heads. Hexamethyldisilazane benefits from the demand for fumed silica, pharmaceutical synthesis and electronic semiconductors. The global fumed silica market is expected to grow at a compound growth rate of 6.35% to US $2.3 billion from 2020 to 2026. As a pharmaceutical group protector, the pharmaceutical field is widely used in cephalosporins, penicillin and other fields with the advantages of safety and stability, easy binding and easy removal. Electronic semiconductors are widely used as cleaning agents and etching agents. As a capping agent, vinyl double head is mainly used in silicone deep processing products such as vinyl silicone rubber and vinyl silicone oil. The gradual improvement of the permeability of new energy vehicles will become an important increment of downstream demand. The cost side is accompanied by the trend of DMC capacity expansion, and the supply of trimethylchlorosilane, the core raw material, is gradually surplus, which is beneficial to the profit improvement of functional auxiliaries.
Phenyl monomer to meet the needs of special performance, downstream deep processing to create the whole industry chain. Phenylchlorosilane can meet the special performance requirements such as high temperature resistance, radiation resistance and insulation, and is gradually used in aerospace, new energy vehicles, LED and other markets. IPO fundraising includes phenyl chlorosilane downstream deep processing, covering phenyl monomers, phenyl intermediates, silicone resin, silicone oil, silicone rubber and other categories, aimed at building a phenyl silicone industry chain, one is to enrich the product structure to avoid risks, the other is large-scale, integration to enhance comprehensive competitiveness.
Cover for the first time, giving a "buy" rating. It is estimated that in 2021-2023, the revenue will be 9.46 yuan 12.52 / 1.636 billion yuan, and the net profit of 2.90 pounds will be 3.76 billion yuan, corresponding to PE of 20X, 16X and 12X, respectively. The three-year net profit compound growth rate will be 46%. This year, PEG is 0.44. Industry racing tracks are scarce and have high growth. It is recommended to give 30 times PE, corresponding to market capitalization of 8.695 billion and a "Buy" rating.
Risk tips: product prices fall; projects under construction are not as expected; demand decline risk.