Investment event
The company released a report for the third quarter of 2023 that its operating income reached 3.521 billion yuan in the third quarter of 2023, an increase of 7.71% over the same period last year. The net profit of shareholders belonging to listed companies was 194 million yuan, down 40.49% from the same period last year. The net profit deducted from non-homing companies was 181 million yuan, down 17.86% from the same period last year.
Main points of investment
The profitability of lithium hexafluorophosphate is still robust against the background of falling prices. According to the quotation of lithium hexafluorophosphate on June 30, Wind,2023, it was 1675,000 yuan / ton, and on September 28, it dropped to 98,000 yuan / ton. In the same period, the quotation of lithium carbonate, an important raw material upstream of lithium hexafluorophosphate, was greatly reduced, and the price of 99.5% battery-grade lithium carbonate was reduced from 3068 thousand yuan / ton to 1689 thousand yuan / ton. Under the support of raw material costs, the price of lithium hexafluorophosphate fell significantly in the third quarter. Judging from the level of gross profit margin in the third quarter, it continued to improve slightly from the previous quarter, and the overall profitability was guaranteed.
Zhongning Silicon Industry builds "South Base" of Electronic Chemicals
In 2018, the company completed the merger and acquisition of Zhejiang Zhongning Silicon Industry. Zhongning Silicon Industry leapfrogged from a single silane product to a collaborative development of new energy materials based on electronic special gas, and aimed at the field of third-generation semiconductor materials. In the future, Zhongning silicon industry will invest more than 5 billion yuan to build an annual production capacity of 32000 tons of electronic special gas, 40,000 tons of silicon-carbon materials and other new energy materials and 1000 tons of electronic materials. Zhongning Silicon Industry is determined to build a "southern base" of electronic chemistry.
Breakthroughs in the field of high-end semiconductor materials to create new energy materials and third-generation semiconductor materials Zhongning Silicon Industry officially entered the high-end semiconductor industry in 2020. at present, it has established cooperative enterprises with Semiconductor Manufacturing International Corporation, BOE, Taiwan Semiconductor Manufacturing Co Ltd and other pan-integrated circuit leaders, and the products have been promoted and applied in the Korean and Japanese markets. In the field of new energy materials, the company has completed the carbon nano-silicon powder and silicon-carbon material production line in 2019. At present, the new project production line with an annual output of 5000 tons of silicon-carbon anode materials is under construction and is expected to be put into production by the end of this year. At the same time, the company is also laying out for the preparation of 6-inch to 8-inch wafers or substrates of silicon carbide precursor silicon carbide powder to create new kinetic energy of the third generation semiconductor materials.
Profit forecast and valuation
Maintain earnings forecasts and maintain "overweight" ratings. As a leading enterprise of inorganic fluorine chemical industry, the company benefits from the rapid development of new energy, semiconductors and other emerging fields and the localization process of new materials in the upstream. We estimate that the return net profit of the company from 2023 to 2025 is 6.96,13.07 and 1.86 billion yuan respectively, the corresponding EPS is 0.58,1.10,1.56 yuan respectively, and the corresponding PE is 26,14,10 times respectively. Maintain the "overweight" rating.
Risk hint
Capacity digestion risk, raw material fluctuation risk, environmental protection and production safety risk.