Wu Tailai (603659): Entering the upstream strong base
Introduction to this report: Access to Revitalizing Carbon 28.
With a 57% stake, considering the comprehensive strength of restructuring of coal materials and its major shareholder Weijiao Group in coal chemical industry, listed companies will obtain high-quality core raw material needle coke supply guarantees, enhancing their competitiveness.
Event: June 14th to 1.
4.5 billion yuan from Quanyuan Enterprises to acquire the revitalized carbon materials it holds.
57% equity, Kuo Yuan Enterprise is a wholly-owned enterprise owned by Tai Tai Lai, so it is a related party transaction.
Opinion: The transaction pricing is significantly cheaper, consolidating the strength of listed companies, maintaining profit forecasts and overweight ratings.
In November 2018, the majority shareholder took 1.
400 million yuan won the revitalization of carbon 28.
57% equity (corresponding to registered capital of 100 million US dollars), and then half a year later to 1.
The transfer of 45 ppm (increasing 5 million yuan) to the listed company only increased the time cost of capital. Considering that the construction of the revitalizing carbon material capacity has been basically completed, the transaction price is much cheaper.
Recently, the company has continuously entered the upstream and upstream graphitization, needle coke and other fields through various methods, which has greatly consolidated the comprehensive strength in the supplement industry, enhanced competitiveness, and maintained EPS earnings forecast for 2019-2021.
97 yuan, maintaining the target price of 78.
10 yuan to maintain the overweight level.
Go upstream and master the core raw materials.
The main product of revitalizing carbon is coal-based needle coke, which is the core raw material of formaldehyde.
Revitalizing Carbon is a holding subsidiary of Shandong Weijiao Group (holding a total of 60% of the shares). It has a long-term and stable source of raw materials such as coal tar and a good needle coke technology reserve.The progress of the project has reached 90%, and it is about to be put into production. It needs 0 per ton per second.
According to the calculation of 8 tons of needle coke, 4 inserts of needle coke can produce about 3.
2 The maximum limit can meet the needs of most of the company’s coal-based needle coke (this year it is estimated that the total replacement amount is 5).
Weijiao Group is a first-class chemical group with comprehensive strength.
The revitalization of carbon materials is backed by Shandong Weijiao Holding Group, which was established in 1971. It is a large enterprise group integrating coal chemical industry, fine chemical industry, new 南京夜网materials, clean energy, and technical services. In 2018, it achieved total sales revenue of 17.1 billion yuanYuan, total assets of 107 million yuan, mainly coke, carbon black oil, industrial naphthalene, modified asphalt and other more than 40 kinds of chemical products on sale.
Relying on the experience accumulated by the Weijiao Group’s coal chemical industry for many years and supporting resources in the upstream coal chemical industry chain, the revitalization of carbon materials will have advantages in raw material procurement, process technology development, and by-product sales.
Risk reminder: Catalyst for revitalizing the construction of carbon material production fails to meet expectations: the company terminates its products and obtains large overseas orders