The company achieved growth in the first three quarters. The follow-up demand for liquid carbon dioxide of traditional products is expected to recover gradually, and the rare gas will enter the release stage. At the same time, through the implementation of the two major fund-raising projects, new businesses such as electronic special gas and hydrogen peroxide will inject new impetus into the development of the company. We maintain that the EPS forecast of our company from 2022 to 2024 is 0.35 RMB 0.63 max 0.89 yuan respectively. With reference to the company's historical valuation, the company is given a valuation of 37 times PE in 2023, corresponding to the target price of 23 yuan and maintaining a "buy" rating.

Revenue in the first three quarters of 2022 was + 12.08% compared with the same period last year, and net profit returned to home was + 13.09% compared with the same period last year. In the first three quarters of 2022, the company realized revenue of 545 million yuan, year-on-year + 12.08%; net profit of 116 million yuan, + 13.09%; and non-return net profit of 105 million yuan, + 11.44% of the same period last year. The company's gross profit margin in the first three quarters of 2022 was 44.46%, up 1.34 pcts;Q3 from the same period last year. Single-quarter gross profit margin was 40.56%, down 1.70 pcts from the previous year. Among them, the company Q3 achieved revenue of 181 million yuan in a single quarter, year-on-year-2.01%, month-on-month + 11.73%; realized return-to-mother net profit of 33 million yuan, year-on-year-25.05%, month-on-month + 26.92%; realized non-return net profit of 29 million yuan, year-on-year-29.53%, month-on-month + 26.09%. In the case of relatively weak downstream demand for carbon dioxide, the company achieved year-on-year growth in the first three quarters of 2022, mainly due to sales of rare gases.

In the first three quarters of 2022, the four-fee rate decreased by 2.39 pcts compared with the same period last year, and the net cash flow generated by operating activities was 134 million yuan. In terms of expense rate, the sales / management / R & D / financial expense rate of the company in the first three quarters of 2022 was 4.14%, 10.66%, 5.80% and 1.53%, respectively, compared with the same period last year. The total rate of four fees was 22.14%, down 2.39 pcts from 24.52% in the same period last year. The company's Q3 single-quarter sales / management / R & D / financial expense rates are 4.00% 12.10% 12.10% 5.11% 1.56%, respectively, and the month-on-month change is-0.49max 1.03 pcts. From the perspective of cash flow, the net cash flow generated by the company's operating activities in the first three quarters of 2022 was 134 million yuan, and the net increase in cash and cash equivalents in the first three quarters was 124 million yuan.

Continue to deepen the layout of electronic special gas business and strengthen customer coverage. Recently, Yueyang Camet Electronics Special rare Gas Co., Ltd. signed the material Business Strategic Cooperation Agreement. Party B is a comprehensive enterprise specializing in semiconductor materials, equipment and services. It has set up branches in many countries and regions. The core members of the team have worked in semiconductor and related industries for more than 15 years. With rich industry experience, professional knowledge, technical and engineering capabilities and customer resources, Party B has signed supply framework agreements with a number of global semiconductor leading enterprises. And complete the certification of several companies' products in the client and begin to supply on a large scale, and the strategic cooperation with Camet Electronics Special Gas Company will form a closer complementary and promoting relationship to serve China and the global electronic special materials industry. to form a closed loop of the whole industry chain of electronic special materials.

It is proposed to raise no more than 1 billion yuan for electronic special gas and hydrogen peroxide projects. The company plans to raise no more than 1 billion yuan through a non-public offering of A shares, of which 570 million yuan is planned for the "Yizhang Cammet Special Gas Project" (with a total investment of 750 million yuan). The initial construction of 15 sets of electronic special gas and mixed gas production, processing and auxiliary equipment, the project will help the company to improve the layout of electronic special gas products, enhance the core competitiveness, and help to meet the domestic substitute demand. Another 430 million yuan is planned for the "300,000 tons / year (27.5%) high clean food and electronic grade hydrogen peroxide project" (with a total investment of 520 million yuan). The product scheme includes four kinds of products: electronic grade, food grade, industrial grade dilute products and industrial grade concentrated hydrogen peroxide. The actual output of each product can be adjusted accordingly according to market supply and demand. The project can alleviate the structural contradiction of domestic hydrogen peroxide localization supply. It will help the company to grasp the new round of rapid development of the global hydrogen peroxide industry and find a new driving force for profit growth.

Risk factors: product price fluctuations; downstream introduction progress is not as expected; market competition is intensified; non-public offering or capacity construction progress is not as expected.

Earnings forecast, valuation and rating: the company achieved growth in the first three quarters. The follow-up demand for liquid carbon dioxide of traditional products is expected to recover gradually, and the rare gas will enter the release stage. At the same time, through the implementation of the two major fund-raising projects, new businesses such as electronic special gas and hydrogen peroxide will inject new impetus into the development of the company. We maintain the company's 2022-2024 EPS forecast of 0.35 pound 0.63 won 0.89 yuan. With reference to the company's historical valuation (25-50-75 quantile PE is 37-68-88 times), the company is valued at 37 times PE in 2023, corresponding to the target price of 23 yuan, maintaining the "buy" rating.