Original title:
Yuan Li shares
Active carbon is the domestic leader, and new production capacity helps the sustainable growth source: Anxin securities
Yuanli Co., Ltd. is a leading domestic activated carbon business across activated carbon, sodium silicate and silica: in 2019, the company's activated carbon business achieved revenue of 774 million yuan (accounting for 60.4%), a year-on-year growth of 25.2%; the gross profit was 235 million yuan (accounting for 74.2%), a year-on-year growth of 26.0%. The company is the leading enterprise of wooden activated carbon with the strongest comprehensive strength in China. According to the announcement, the company has a high market share in China, the first production and sales volume and export volume, a national business base layout, the most complete product series, the strongest technical strength, abundant scientific research achievements and high market recognition. In the world, it is in line with Cabot / norite, Osaka gas / Jacobi, Koli / ka Ergan and yingjiewei are also called the top five in the world. In the future, based on the activated carbon industry chain, the company will develop to high-end fields such as health medicine, environmental energy, new materials, etc., create the most innovative, competitive and influential wooden activated carbon enterprise in the world, and become the global leader of wooden activated carbon industry. Sodium silicate (silica) business: in 2019, the company's sodium silicate (water glass) business realized revenue of 213 million yuan (16.7%), a year-on-year growth of 1.2%; gross profit of 24 million yuan (7.6%), a year-on-year growth of 13.1%. Yuanhe chemical, the holding subsidiary of the company, is the most advanced precipitation process silicon dioxide production enterprise in China, with core technology, process, equipment, plant and domestic customer base of precipitation process silicon dioxide production. According to the announcement, the company is also the only precipitation process silicon dioxide partner of Evonik in mainland China. Both parties adopt the "equity + supply chain" cooperation mode Cooperation for 13 consecutive years. The company is one of the few suppliers of green tire certification in the domestic silica industry. In the future, it will take the opportunity of "green tire" to expand the highly decentralized silica Market and build into a comprehensive, innovative and international enterprise group integrating production, service and application. It is planned to construct the "320000 T / a solid water glass project" in three phases, and some production capacity will be formed in 2020. Online game business: the company has completed the sale of all online game assets in 2019 and is no longer engaged in the game business; the divestiture of this sector has caused the company's overall financial situation to fluctuate in 2019. The development potential of super capacitor energy storage market is huge, and the prospect of activated carbon is bright in the future. The market application of activated carbon super capacitor energy storage is ready to develop. According to prospective economist data, driven by high-speed rail, electric vehicles, intelligent distributed grid, etc., the market size of China's super capacitor increased from 1.39 billion yuan in 2011 to about 12 billion yuan in 2018, with an average compound growth rate of more than 36%. The rapid expansion of the market scale of super capacitor will drive the rapid growth of the demand for electrode materials of super capacitor activated carbon. The company is a large-scale production of super capacitor carbon enterprise, which is expected to fully benefit. In addition, the emerging application fields of activated carbon include VOCs treatment market, water pollution treatment field in mainland China, water purification market, medicinal carbon market, etc., all of which are growing rapidly, while the traditional fields such as food and beverage, chemical industry, condiment, etc. are also growing steadily. Non public issuance of a shares raised and invested in the construction of activated carbon production capacity and R & D center. In July 2019, the company announced the plan for non-public issuance of a shares, and in February 2020, the revised version was announced. According to the plan, the company plans to issue no more than 73 million shares to no more than 35 specific objects in a non-public way, with a total amount of raised funds of no more than 883 million yuan; after deducting the issuing expenses, the company plans to invest in the construction of Nanping Industrial Park's activated carbon (with a planned investment of 722 million yuan), Nanping Yuanli activated carbon research and Development Center (with a planned investment of 61 million yuan), repay bank loans and supplement working capital (with a planned investment of 100 million yuan), The construction period of the project is 2 years. Construction project of activated carbon in Nanping Industrial Park: it is announced that it is planned to be used for the construction of production lines of phosphoric acid powdered carbon (chemical carbon) (40000 tons), medicinal carbon (10000 tons), granular carbon (10000 tons), physical carbon (5000 tons, used for refining medicinal carbon) and super capacitor carbon (06000 tons), with a total of 65600 tons of activated carbon. According to the announcement, the production line with an annual output of 10000 tons of phosphoric acid process chemical carbon and 5000 tons of medicinal carbon has been completed and put into operation; in 2020, it is expected to increase the production capacity of 300 tons of super capacitor carbon (150 tons in the first half of the year), 2000 tons of chemical process granular carbon and 1000 tons of phosphoric acid process powdery carbon; it is expected that by 2022, the company will have 140000 tons of activated carbon production capacity. Through the project, the company will comprehensively layout the activated carbon business, optimize traditional application products by multi type and differentiated production lines, and penetrate into high-end application markets such as pharmaceutical, environmental protection, energy storage, etc., which will lead to the improvement of product types and quality and the reduction of cost. Construction of Yuanli activated carbon R & D center in Nanping: the company's technical level and comprehensive strength are the strongest in the wood activated carbon industry. In order to maintain competitive advantage, comply with policy requirements, achieve sustainable development and enhance growth, it is necessary to further improve the R & D strength and carry out forward-looking research, so it is necessary to build a high-standard activated carbon R & D center. Through the construction of R & D center project, the company is expected to further improve the "technology innovation" ladder development mode of "production generation, reserve generation, development generation, planning generation". Investment suggestion: increase the holding of - a investment rating. We expect the net profit of the company from 2020 to 2022 to be RMB 148 million, RMB 219 million and RMB 308 million respectively. Risk tip: the risk of product market changes, the risk of new projects not meeting expectations, the risk of intensified industry competition, and the downstream demand not meeting expectations