[Wang Xiaoyong of northeast building materials] in depth report of Donghua Technology (002140): taking advantage of the east wind in

In the past 20 years, the company’s revenue has reached a record high and its net profit has increased steadily.

(the original securities research report was issued on September 8, 2021; Wang Xiaoyong Certificate No.: s0550519100002)..

The development history is profound, and the traditional business needs to be transformed urgently.

With the recovery of downstream demand and the mismatch between supply and demand, the price of lithium salt is accelerated.

The company has a composite background of EPC and project design and is absolutely competitive in the industry.

The company and Yulin chemical jointly invest, build and operate the “500000 T / a DMC phase I project of new chemical materials demonstration project of coal quality utilization” to consolidate the company’s market position in DMC engineering construction.

Risk tip: the production capacity is less than expected, and the price of raw materials rises sharply.

Fixing Socket Cross Hole Nail Plate

In 2018, it signed the engineering design contract for 20000 t / a lithium carbonate project with Zangger lithium industry, which achieved the lithium carbonate capacity in only three years, full production and full sales, and the capacity climbing time is short, It has set a precedent for the successful large-scale extraction of lithium from very low concentration brine.

Battery grade DMC highlights its competitive advantage, and the development route of dual industry has been clear.

As the first large-scale design institute involved in the design of salt lake lithium extraction project in China, Donghua technology, as the only lithium carbonate engineering design supplier in the market, has the technology patent of lithium carbonate reactor.

Give the company a buy rating.

The demand heat of the upstream and downstream of electrolyte is not reduced.

At this stage, the mismatch between supply and demand leads to the higher price of battery grade DMC.

Independent and controllable, the design of salt lake lithium extraction project has great prospects.

If the PBAT and DMC projects of the company are carried out as scheduled, the EPS of the company is expected to be RMB 0.51/0.81/1.07 from 2021 to 2023, and the corresponding PE is 21.97/13.91/10.56 times.

Since the beginning of the year, the company has invested in the construction of 100000 ton / a PBAT project with Xinjiang Tianye and Shuguang LvHua Signing the EPC contract of 100000 t / a BDO and 120000 T / a PBAT project and introducing the strategic investment of Shaanxi coal group can promote the technical progress and process optimization of Donghua technology PBAT project and continuously improve the industrial layout of the company.

Domestic lithium resources are concentrated in salt lakes with large capacity release space.

As a traditional dominant business, EPC accounts for a large proportion, covering coal chemical industry, petrochemical industry, fine chemical industry, environmental governance, infrastructure and other fields.

In the face of the intensification of white pollution, the demand for major degradable plastics such as PLA, PBAT and PBS is growing rapidly.

Donghua Technology Co., Ltd., formerly known as the third Design Institute of the Ministry of chemical industry of China, has nearly 50 years of engineering design project experience.

China is in the early stage of the promotion of the “plastic restriction and prohibition” policy, with high plastic output and low reuse rate of waste plastics.

Since its establishment, the company has completed more than 2000 large and medium-sized engineering projects in chemical industry, petrochemical industry, environmental quality, infrastructure and other industries.

With the advent of degradable golden age, the industrialization direction of PBAT is clear.


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