Zanyu Technology: 29 institutions such as CITIC Construction Investment and Orient Fund Management Co., Ltd. investigated our company on March 7

On March 9, 2022, Zanyu Technology (002637) announced that: Zhou Zhou of CITIC Construction Investment Deng Sheng, Zhang Bo of Orient Fund Management Co., Ltd., Gao Hongtao of Yunnan International Trust Co., Ltd., Chen Min of Shenwan Hongyuan Securities Co., Ltd., Zheng Hui of Haining Shibei Investment Management Partnership (Limited Partnership), Chen Zhaoxu of China Post Securities Co., Ltd., Peng Wei of Beijing Yanhang Investment Management Co., Ltd., Feng Yuan of Jiahe Fund, Liu Shude of Chinese Min Pension Insurance Co., Ltd., Xu Rongzheng of Hangzhou Qianlu Investment Management Co., Ltd., He Yuanyuan of Guangzhou Kangqi Asset Management Center (Limited Partnership), Zhang Jingui of Shenzhen Wangzheng Asset Management Co., Ltd., Sun Delong of Huaneng Gui Chengxin Trust Co., Ltd., Zheng Yong of Southern Fund, Chaoqian of Huisheng Fund Management Co., Ltd., Cheng Peijian of Shenzhen Duoxin Investment Management Co., Ltd., Ma Shenghua of Huaxia Fund Management Co., Ltd., Liu Sheng of Zhonggeng Fund Management Co., Ltd., Zhu Xiaohu of Xiamen Jinhengyu Investment Management Co., Ltd., Ouyang Yetian of Chinese Insurance Asset Management Co., Ltd., Geng Qian of Hangzhou Bo grain Erxiang Asset Management Co., Ltd., Yao Xin of Xinhua Pension Insurance Co., Ltd., Wang Jing of Ping An Asset Management Co., Ltd., Liu Meng of Founder Fubon Fund Management Co., Ltd., Yao Bohan of Shanghai Qiyao Investment Management Partnership (Limited Partnership), Hao Xuemei of CMB Wealth Management Co., Ltd., Zhuge Bin of Zhejiang Houda Capital, Lu Lijun of Hangzhou Hengqiang Investment Management Co., Ltd., and Zhang Zhifeng of Yuandao Asset Management Co., Ltd. investigated our company on March 7, 2022.

The main contents of this survey are:

Q: What is the specific impact of Indonesian policy on Dukuda?

A: According to the current situation, every 1 ton of food palm oil sold will have a profit loss of hundreds of US dollars, and according to the proportion of 20% of the total export volume, the profit loss per ton of oily products may reach about 100 US dollars. However, this part of the loss is also expected to be transmitted to upstream plantations, oil milling enterprises, and downstream users. During the implementation of the policy, it is expected that the profit loss borne by the final oil chemical enterprises will be about 25-50 US dollars / ton. The existing DMO policy has led to greater domestic pressure and contradictions in Indonesia, and there is strong uncertainty about whether the policy can be implemented for a long time and continuously. The company's Indonesian Dukuda factory with palm oil as raw material, compared with China's domestic oil chemical enterprises, the current Indonesian Dukuda export tariff + LEVY price difference advantage at 210 US dollars / ton, considering the impact of DMO policy, Dukuda still has a strong cost advantage.

Q: At present, the price of palm oil is still high, what is the impact on the profitability of the Dukuda base and the domestic oil and fat production base? What is the company's current raw material inventory? How to deal with the risk of rising raw material prices?

A: The advantage of export tariffs + LEVY spread in Dukuda, Indonesia, makes Dukuda still have a strong cost advantage. In the past two years, the supply of oil chemical products is tight, and the supply has continued to be tight this year, on the one hand, due to the continuous sharp rise in palm oil prices, on the other hand, due to the market panic caused by high prices, the inventory of the market from oil chemical enterprises to downstream customers is at a low level. From the perspective of the middle line, the procurement of raw materials by domestic enterprises is tight and even problems will occur, and there have been shortages of raw materials in the same industry, resulting in the suspension of production. Oil chemical enterprises have raw materials that can be produced at full capacity, profits will be better, and insufficient raw material reserves will lead to production stoppage. The company's inventory is generally 1-2 months of consumption. In the actual production and operation, the company will take advantage of the difference in the time node and amplitude of domestic and foreign prices to select the best; secondly, the company will appropriately control the level of inventory according to the raw material price situation and the company's operating conditions; third, reduce the risk of raw material price rise and fall through moderate hedging, and fourth, reduce the impact of raw material price fluctuations on product profits through downstream customer processing mode and upstream long-term supply agreement.

Q: What is the progress of Hangzhou Oilification's 100,000 tons of ester production? What is the customer and demand situation of OPO, monoglyceride and other products? What is the profitability of each product?

A: Among them, oleic acid has been tested out of the product, and the installation of the rest of the equipment and equipment is nearing the end, and it is expected to start testing in late March. Monoglycerides are food additives that can be added to beverages as emulsifiers. OPO is a nutritional supplement for infants and young children, added to infant milk powder, which can play an important role in the growth and development process of infants, can enhance the absorption of fat and mineral elements in infants and young children, promote the development of bones and central nervous system, and alleviate constipation. The project to achieve full production still needs a process, with the company's new technology and new processes, the product will have a certain competitiveness.

Q: What is the company's current OEM production capacity? What are the main advantages of being an OEM?

A: At present, the company has planned downstream processing and production projects for daily chemical washing products in Zhenjiang, Jiangsu and Hebi, Henan, Meishan in Sichuan and Cangzhou in Hebei. Jiangsu Zhenjiang "annual output of 100,000 tons of liquid detergent project" has been completed and put into operation at the end of 2019, Henan Hebi "Zanyu Science and Technology Zhongyuan Daily Chemical Ecological Industrial Park Project" 500,000 tons of toiletries production plant is scheduled to be completed around June 2021. Sichuan Meishan annual output of 500,000 tons of daily chemical products project has also been launched and fully promoted. Cangzhou Zanyu 500,000 tons of washing products are also preparing for the preliminary design of the project and other work, Zhenjiang factory after two years of trial operation, the current customer stability, mainly 2-3 large customers, basically meet expectations. Downstream major customers strongly hope to carry out long-term and in-depth cooperation with the company. The company's OEM business extends to the field of daily chemical consumer goods, making it a new performance growth point for the company, while giving play to and strengthening the advantages of surfactant research and development, it can further improve the stickiness of customers, consolidate market share, and greatly enhance the company's competitiveness and profitability. Advantages of developing OEMs: capital and management advantages as a platform for listed companies; Cost advantages due to technology, layout and market capabilities; Synergistic market advantages after extending downstream, etc.

Q: What is the company's strategic planning for the oleochemical business?

Answer: In the future, the oleochemical market has more room to develop, mainly to do in depth, increase product types, especially high value-added products, extend to the downstream depth, develop new products, and expand new markets.

Q: What are the specific aspects of the company's core competitiveness?

A: The company's main advantage is the technology and cost advantage. The company is a professional enterprise of surfactant transformed from scientific research institutes, is a national high-tech enterprise, inherits the strong professional research and development strength of the original scientific research institute, actively exerts the platform advantages of the provincial key enterprise research institute and key laboratory in the two major subdivisions of surfactants and oleochemicals, based on the technical research of new products and new processes, and continuously carries out technological innovation for the industrialization of related technical products. The company combines factors such as production bases, sales channels and logistics and transportation, and has carried out a rational layout of national production bases, and has obvious advantages in customer delivery capacity and transportation cost management.

Q: Industry competitors?

A: The company's main competitors in the surfactant industry: Hunan Lichen, Taiwan Tongzhi, China Light Chemical, etc. The main competitors in the oleochemical industry: Wilmar Group, Taike Browning, etc.

Q: What is the situation of Zhengshang development into the main company?

A: After Zhengshang Development joined the company in 2018, the company's development strategy remained unchanged, and it still aimed at developing the main business and making it bigger and stronger.

The main business of Zanyu Technology: concentrated in the surfactant and oleochemical manufacturing industry, and provides third-party testing and comprehensive water environment treatment services such as food safety, environment, occupational health.

Zanyu Technology's 2021 third quarter report shows that the company's main revenue was 8.019 billion yuan, up 56.38% year-on-year; net profit attributable to the mother was 604 million yuan, up 65.03% year-on-year; deducting non-net profit was 614 million yuan, up 102.34% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 3.015 billion yuan, up 61.28% year-on-year; single-quarter net profit attributable to the mother was 165 million yuan, down 4.21% year-on-year. In a single quarter, the non-net profit was 195 million yuan, up 31.81% year-on-year; the debt ratio was 51.29%, the investment income was -21.7796 million yuan, the financial expense was 57.4668 million yuan, and the gross profit margin was 17.76%.

The stock has had 3 ratings and 3 buy ratings in the last 90 days; the average institutional target price for the past 90 days has been 25.8. The Securities Star Valuation Analysis Tool shows that Zanyu Technology (002637) has a good company rating of 3 stars, a good price rating of 3 stars, and a comprehensive valuation rating of 3 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)

The above content is compiled by Securities Star based on public information, if you have any questions, please contact us.