China Porcelain Materials' "New and High" Ceramic Building Materials Show

The only domestic supplier of MLCC materials for volume production is Guoya Ceramics, which uses MLCC ceramic materials such as nano-barium titanate and formula powder as the main products. At the end of 2011, the company achieved a production capacity of approximately 1,700 tons. It is the only supplier capable of mass production in China with a domestic market share of approximately 75%. The company's equity is relatively decentralized, with the top five shareholders holding about 89% of the pre-issued equity and the major shareholder, Yingtai Petroleum, accounting for 25.84%. The core management team has a strong background in technology, production and sales, and has rich professional and management experience.

Emerging industries: Demand volume and industrial upgrading together to create a market space MLCC (Chip Multilayer Ceramic Capacitors) has an irreplaceable position in the field of electronics and electronics, and barium titanate materials are the core components of MLCC. With the rapid growth of the electronics industry and the continuous upgrading of products (on the one hand, the domestic electronics industry itself is expected to continue growing at a double-digit rate; on the other hand, newer and higher-end electronic products will have greater demand for MLCCs, such as The iphone mobile phone needs about 800 MLCCs, which is 2 times that of ordinary mobile phones. The market demand for MLCC products continues to expand. At present, the global MLCC ceramics market has a capacity of about 1 billion U.S. dollars and grows at a rate of 6-7% per year.

On the other hand, with the continuous development of miniaturization, large-capacity, and lead-free MLCC, the requirements for parameters such as purity, particle size distribution, and sphericity of electric porcelain materials have also been continuously improved, promoting nano-barium titanate and its product industries. The level of technology and added value of products continue to take a new level.

At the same time, microwave materials with a market capacity of about one billion US dollars are expected to become the new downstream areas of nano-barium titanate products. At present, the company has a small amount of sales.

Hierarchy of barriers: technology and certification barriers to establish a long-term competitive advantage The company is the world's second master of nano-barium titanate high-pressure hydrothermal synthesis technology companies (currently the world's only Japan, Japan, chemical and company master). The hydrothermally synthesized nano-barium titanate product has the advantages of complete crystal growth, uniform particle size and controllability, low cost and less impurities, and is currently the most cost-effective high-end nano-barium titanate production process.

Since the process requires strict parameters such as temperature and pressure, and the industrialization threshold is high, even in the most developed nano-barium titanate industry in Japan, it is only owned by Handan Chemical. We believe that at least in the next 2-3 years, other companies will be industrialized independently. Less likely.

On the other hand, powder materials have a significant impact on the quality and consistency of MLCC products, and MLCC companies have very strict certification of raw material supply. At the same time, downstream companies will not easily change suppliers unless there is a significant difference in quality or price. Therefore, it is often 2-3 years for powder companies to open up a new customer. The industry's threshold for certification is high based on the double threshold of technology and certification. The company's advantages in the field of nano-barium titanate and downstream formulation powders are relatively strong. Persistent.

High-speed growth: Capacity is put into use, goes international, and enters the fast lane of development The company has set a goal of “expanding production to 6,000 tons in 5 years” and will enter the peak period of production capacity in recent years. The 1,500 tons of production capacity to be raised is expected to be put into operation in 2013. Considering the increase in technical reforms, it is expected that capacity will be doubled in 2013 compared to this year.

Internationalization will become an important way to digest the company's production capacity. At present, the market for nano-barium titanate and its formula powder used in international MLCC is still largely controlled by Japanese companies. Although the company’s market share in the domestic market exceeds 75%, the current global market share is only about 3%, while the share is more than 75%. Return to Japanese companies, estimated from the market size, the domestic market is only 3% of the foreign market, the prospect of substitution is very broad. The company's products are no less inferior to Japanese competitors in terms of quality and product line perfection, and the price is only about 50% of the rival (gross margin can still be maintained at 50%), and the competitive advantage is obvious. At present, the company's products are being certified by a number of major international customers. Once passed, the market is expected to expand rapidly. In 2011, Samsung replaced Fenghua Hi-Tech and became the company's largest customer. The strategy to become internationalized has achieved initial results and it is worth watching.

It is expected that the stock price will be 0.70, 1.07 and 1.59 yuan per share in 2011-13, and the reasonable price of 19.3-23.5 yuan will be a rapid growth period of the performance in the near 3-5 years with the continuous production of the company's production capacity. It is expected that the company will accrue earnings per share for 2011-13. They were 0.70, 1.07 and 1.59 yuan, respectively. Calculated according to the calculation of 18-22 times per share in 2012, the proposed subscription price was 19.3-23.5 yuan.