The company mainly focuses on chemicals in the carbon-4 industry chain. It is a global leader in the methyleketone and maleic anhydride industries. It has a wide range of products, a complete industrial chain, and a supply chain business. At the same time, we are actively developing carbon-three and new materials businesses.
China is a major producer and exporter of methylacetone maleic anhydride. Technological substitution and environmental protection have brought new space to the industry, and the company has become the biggest beneficiary. The global methyleketone and maleic anhydride industries are highly concentrated, and China is the most important producer and exporter. As a global leader in the methyl ethyl ketone and maleic anhydride industry, the domestic market share is as high as 50% and more than 30%, and the company's exports account for 70% and 50% of domestic exports. The methylethyl ketone industry has a high position in the industrial chain, there is plenty of room for technology replacement in the maleic anhydride industry, and environmental protection promotes the expansion of demand space for maleic anhydride and methyl ethyl ketone. As a global leader, the company will be fully driven by exports and new changes in the industry.
The company has cost advantages and quality advantages. The scale of the company's production line is far ahead. The scale effect reduces unit manufacturing costs and enhances bargaining power for raw material procurement; the company base layout is close to raw material suppliers and customers, and pipeline transportation plus shipping models reduce transportation costs; flexible production capacity can be produced according to market demand, improving capacity utilization and reducing unit production costs; efficient equipment and highly qualified personnel reduce manufacturing and labor costs. The company's technology is leading in the industry, the product quality is excellent, and it has a good brand image in the industry.
Under the advantage, the gross margin level improved steadily and was superior to that of interbank companies. ROE levels have continued to improve in recent years, net profit margins have remained stable and improved, and advantages such as leading positions have helped the cost pressure to pass downward.
Make up for shortcomings and solidify advantages into a stage of high growth, leading advanced technology to start new growth. The company expanded production capacity of methyl ethyl ketone and maleic anhydride to consolidate its main advantage and develop supply chain business to make up for shortcomings in raw materials. Expand the carbon-4 industry chain in all directions and build new production capacity such as MMA, PMMA, and isononyl alcohol with technological advantages. By introducing exclusive foreign advanced technology to build projects such as propane oxide and propane dehydrogenation, the company will begin a new phase of growth. Benefiting from improved industry sentiment and the production capacity of the entire industry chain, the company entered high growth in 2021.
Company profit forecast and investment rating: We expect the company's EPS for 2021-2023 to be 1.36, 2.08 and 2.55 yuan, respectively. The corresponding PE values are 11, 7, and 6 times, respectively. The first coverage gave a “highly recommended”
Investment ratings.
Risk warning: Production capacity construction fell short of expectations, rising raw material prices, changes in demand, and the release of production capacity in the industry exceeded expectations.