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Hangzhou Oxygen (002430) comment on major issues: the first electronic gas project landing gas downstream diversified development

Hangzhou Oxygen (002430) comment on major issues: the first electronic gas project landing gas downstream diversified development

Event: The company issued an announcement: invested in the establishment of Qingdao Hangyang Electronic Gas Co., Ltd. and signed the “Industrial Gas Supply Contract” with Xinen (Qingdao) Integrated Circuit Co., Ltd.

The contract stipulated that Qingdao Xinen cooperated with the company. As a unit of investment, construction and operation of a 20,000m3 / h pure nitrogen air separation unit, the company will provide industrial gas products to the Qingdao Xinen IC project in phases starting from the gas supply date agreed by the two parties.

  Comment: New Qingdao Gas Subsidiary was established, and the first electronic gas project was launched.

The company and Xinen (Qingdao) Integrated Circuit Co., Ltd. signed the “Industrial Gas Supply Contract”, which stipulates that Qingdao Xinen will cooperate with the company. The company will invest, construct and operate a 20,000m3 / h pure nitrogen air separation unit.To provide industrial gas products to Qingdao Xin’en Integrated Circuit Project in phases from the date of supply.
Therefore, the company plans to set up a holding subsidiary in Qingdao and implement the project.

The total investment of the project is 2.

1.5 billion.

The products agreed by the project include high-purity nitrogen, general nitrogen, high-purity oxygen, high-purity argon, high-purity nitrogen, high-purity helium, high-pressure compressed dry air, compressed dry air, and instrument air.Temporary gas supply will be implemented from September 30, and will enter the first phase of gas supply from March 1, 2020. The contract period is 15 years from the first gas supply date.

The project is mainly based on the supply of high value-added gas such as high-purity gas, which is expected to enhance the company’s profitability.

  The gas business entering the semiconductor industry is expected to bring more and more high-end gas supply projects.

The gas supply project between the company and Qingdao Xinen is a major breakthrough for the company’s gas business to enter the semiconductor industry, which fully demonstrates the company’s influence in the field of industrial gas.

The investment of this project is in line with the company’s strategic planning and long-term interests in the field of industrial gas development.

The implementation of this project also indicates that the company’s industrial gas business is moving forward gradually and in a high-end direction, which is conducive to further enhancing the company’s competitive advantage in the industrial gas industry.

  We are optimistic about the long-term continuous growth of high-quality cash flow business of industrial gas.

The company breaks through the leading R & D capabilities of the air separation equipment industry and continues to expand the gas operation business layout.

According to the statistics of the company’s previous announcements, as of the first quarter of 2019, the planned throughput of the company’s gas operation business reached 1.3 million / hour, continuing the trend of continuous growth.

At present, the overall industrial gas industry is still fragmented. More than 50% of the air separation equipment production capacity is in the hands of traditional steel and chemical manufacturers. As a local industrial gas leader, Hangyang shares less than 5%.

  Considering that 重庆耍耍网 the company has the leading research and development strength of air separation equipment, it will be subdivided into stronger competitiveness during project cooperation to achieve sustainable development of the industrial gas business layout, and is optimistic about the company’s long-term sustainable growth.

  Earnings forecasts, estimates and investment ratings.

We maintain our expectation that the company will achieve net profit attributable to mothers in 2019-2021.

0, 10.

5, 11.

50,000 yuan, EPS0.

93, 1.

09, 1.

19 yuan, corresponding to PE13, 11 and 10 times.

The company’s business is affected by cyclical fluctuations in gas prices, but the gas infrastructure has continued to be promoted for a long period of time. The gas business throughput has continued to increase, with both cycle and growth, given a PE valuation of 20 times and maintaining a target price of 18.

68 yuan, maintaining the “recommended” level.

  Risk warning: Industrial gas prices fall.