Sanda Membrane (688101) Company Research: Expansion of experts in the whole industry chain with broad membrane technology market

Sanda Membrane (688101) Company Research: Expansion of experts in the whole industry chain with broad membrane technology market

The company’s membrane industry is a science and technology innovation enterprise with leading technology and rich project experience.

The company’s founder is Dr. Lan Weiguang, Vice Chairman of China Membrane Industry Association.

Since its establishment 14 years ago, Sunda Membrane has formed a membrane industry chain covering “membrane materials-membrane modules-membrane equipment-membrane software-membrane applications”. Among them, the downstream involves industrial material-liquid separation, wastewater recycling, infiltration and safety assurance., Food and beverage, pharmaceutical and chemical, biological fermentation, metallurgy and petrochemical, water purification and other industries, with a wide range of applications, the company as China’s membrane technology leader, leading technology, rich project experience, landing on science and technology board to promote acceleration in the membrane technology marketExpansion.

The membrane industry has a market space of more than 20 billion, has a wide range of applications, and has ample import substitution space.

According to statistics from the Institute of Advanced Materials Research (GGII), the composite strength of China’s water treatment membrane output value from 2013 to 2017 was 18%.

It is estimated that the market space in 2019 will exceed 20 billion, mainly in the application areas of industrial material-liquid separation, sewage treatment and seawater desalination. Through the promotion of cleaner production and energy-saving solutions, the industry will usher in a period of rapid development.

From the perspective of the industry structure, China ‘s membrane treatment product sector accounts for a large proportion of imports. For example, foreign brands that subdivide products for reverse osmosis membranes account for more than 90%, and the domestic substitution process has accelerated.

The company’s membrane products have prominent advantages, stable water investment and strong competitiveness.

The company’s main membrane technology application and water investment and operation, R & D expense rate is more than 5%, 360 units of sales equipment / set conversion, project experience.

①In terms of membrane technology application, the company has a relatively high market share in industrial material-liquid separation in the pharmaceutical and bio-fermentation fields. In the petrochemical industry, the market share of PTA membrane water treatment exceeds 60%.

② In terms of investment and operation of water affairs, as of the first half of 2019, the company’s scale of operating municipal sewage 78 per day / sewage water price increased to zero.

95 yuan / ton (0 in 2018.

86 yuan / ton), water investment is steady.

Fund-raising projects are mainly invested in the manufacture of membrane materials and complete sets of equipment, and the strength of membrane processing is further enhanced.

In the IPO of the science and technology innovation board, the company raised funds mainly for inorganic ceramic nanofilters and 淡水桑拿网 water purifier production line projects, nanofiltration membrane material preparation and complete membrane equipment manufacturing base projects, special separation membranes and complete equipment preparation and production projectsThe membrane material and technology R & D center project and the construction of the R & D center, the commissioning of the new production line will greatly enhance the company’s comprehensive capabilities of membrane products.

Investment suggestion: The company’s reasonable PE estimate for 2019 is above 30X.

From the perspective of comparable companies, a comparable company mainly includes Kugo Hi-Tech, Jinmo Technology, and Bishuiyuan.

Hisao Hi-Tech is close to the company’s business, and its 2019 PE forecast is 28.

9X.

As the industry leader, the company is expected to grow faster than the industry in 2019-2021. We believe that the company’s reasonable PE is expected to exceed 30 times in 2019.

Risk Warning: 1.

The actual sewage treatment gradually approaches the agreed basic water volume, the investment cost of water affairs increases, and the gross profit margin decreases.

2.

The decline in environmental engineering revenue and the company’s contraction strategy have had a certain adverse impact on overall revenue and performance.

3.

Accounts receivable accounted for a high proportion.