Panorama.com, October 21 Ping An Securities released a research report today, promising the long-term development of Dongyue silicon material (Stock Code: 300821, hereinafter referred to as the "company") and maintaining the "recommended" rating of the company. According to the data of the third quarterly report, the company realized an operating revenue of 2.87 billion in the first three quarters of this year, a year-on-year increase of 62%; The net profit attributable to the parent company was 780 million, a year-on-year increase of 589%.


Ping An Securities believes that the high outlook of silicone is expected to continue. During the reporting period, the silicone industry was affected by multiple factors such as the strong export market of downstream products, the shortage of domestic power and the rising price of silicon materials. Among them, DMC rose from more than 20000 yuan at the beginning of the year to 60000 yuan at the end of September. It is expected that the above supply and demand factors will still exist in the second half of the year, It is expected that the silicone industry will maintain a high degree of prosperity before the first half of next year.


In addition, the company is currently building a fund-raising project, namely 300000 t / a silicone monomer and 200000 t / a silicone downstream product deep processing project. After the project is completed, the total capacity of the company's silicone monomer will reach 600000 T / a (about 282000 T / a of polysiloxane). According to the existing capacity of enterprises in the same industry, by the end of 2021, the company's polysiloxane capacity is expected to rank among the top five in the world. The new capacity is expected to boost the company's performance by more than 500 million yuan.


The research report also points out that the parent company's business extends to the upstream silicon material, and the industrial chain is further improved. On July 13 this year, the company signed the cooperation framework agreement on industrial silicon submerged arc furnace project in Luodian county with the people's Government of Luodian County, and reached a cooperation intention on the company's investment and construction of "industrial silicon submerged arc furnace project" in Luodian county. Recently, the parent company Dongyue Group invested in Hainan Guji, an industrial silicon company, which is conducive to ensuring the sufficient supply of raw materials, stabilizing production, improving market competitiveness and contributing to the long-term and stable development of the company.


Ping An Securities predicts that the company will realize a net profit of 1.12 billion yuan to its parent this year, with an earnings per share of 0.93 yuan. (panoramic network)