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    Home > Chemicals Industry > New Chemical Materials > Guiyan Platinum: The net profit growth rate has exceeded 30% for four consecutive years, but the net interest rate has fallen into the dust

    Guiyan Platinum: The net profit growth rate has exceeded 30% for four consecutive years, but the net interest rate has fallen into the dust

    • Last Update: 2022-01-18
    • Source: Internet
    • Author: User
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    Guiyan Platinum (SH600459), a Yunnan-based company engaged in precious metals (mainly platinum group metals, six metals including platinum, palladium, rhodium, osmium, ruthenium, and iridium, which form a precious metal sequence with gold and silver), nearly five The annual performance is very beautiful: revenue has increased by 3 times, and net profit has increased by more than 10 times
    .
    In particular, net profit has experienced rapid growth of more than 30% per year for four consecutive years, which is rare in A-shares
    .
    But look at gross profit margin and ROE: 3% gross profit margin, 1% net profit margin, and 7% ROE
    .
    It's as low as the dust
    .
    Although the performance of Guiyan Platinum looks good, it is big but not strong
    .
    The company’s stalls are very large: The company is a national high-tech enterprise engaged in the research, development, production and operation of precious metals and precious metal materials.
    It is also the only domestic company that has a series of core technologies and a complete innovation system in the field of precious metal materials, integrating production, learning and research.
    Listed company
    .
    The company has established a relatively complete precious metal industry chain system, and vigorously develops precious metal new material manufacturing, precious metal resource recycling and precious metal supply services.
    Its business areas cover precious metal alloy materials, chemicals, electronic pastes, automotive catalysts, industrial catalysts, gold and silver And platinum group metal secondary resources recycling, precious metals business trade and analysis and testing, production of various products covering more than 390 varieties, more than 4000 specifications, products are widely used in automobiles, electronic information, national defense industry, new energy, petroleum, chemical Chemical, biomedicine, building materials, environmental protection and other industries
    .
    Seeing this section of the company’s official introduction, do you feel unclear? Split the company's specific business: precious metal functional materials (45.
    46%), precious metal recycling (13.
    5%), precious metal trading (41%)
    .
    In other words, 40% of the company's business comes from a wholesale business with no threshold, which is simply buying and selling precious metals
    .
    The gross profit margin of this kind of business is extremely low, only 1.
    23%, but it accounts for the bulk of the company's revenue
    .
    In terms of the company's gross profit, functional materials accounted for 61% and trade 13.
    5%
    .
    This is the main reason why the company’s revenue is high but its net profit is low.

    .
    Obviously, precious metal functional materials are the most promising: high technical barriers, big prospects, and high profit margins
    .
    The company’s precious metal functional materials are specifically divided into: ?Precious metal special functional materials refer to precious metal alloy materials.
    The main products are electrical contact materials, brazing materials, temperature measurement materials, composite materials, catalytic net materials, precision alloy materials, bonding materials, Evaporation materials and other series of varieties are widely used in the defense industry, electronic information, chemical building materials, metallurgy and other industries
    .
    The subsidiary Guiyan Zhongxi (Shanghai) New Material Technology Co.
    , Ltd.
    is responsible for the research, development, production and sales of electrical alloy functional materials, electrical contact materials and components
    .
    Zhongxi Alloy is a leading electrical contact material enterprise integrating scientific research, production and sales.
    It has cutting-edge talents in the industry in expensive/low-cost metal composite strips, silver wires, electrical contact materials, and precision stamping contact components.
    And advanced technology, mainly serving world-renowned companies such as Schneider, ABB, LG, Siemens, etc.
    , with high-quality customer resources
    .
    In 2017, Guiyan Platinum acquired a 60% stake in Zhongxi Alloy for RMB162 million
    .
    In 2018, China's precious metal electrical contact materials market was worth 2.
    18 billion U.
    S.
    dollars, a year-on-year increase of 15.
    3% compared to 2017.
    The increase in precious metal usage and the increase in precious metal prices are the main influencing factors
    .
    From the perspective of the five-year development trend, the demand for precious metals in China's electrical contact materials in 2018 decreased by 16.
    2% compared with 2014, and the market scale increased by 4.
    7%
    .
    Among them, the demand for gold in electrical contact materials increased by 66.
    6% in five years, and the demand for silver and platinum decreased by 17.
    0% and 1.
    6%, respectively
    .
    Electrical contact materials are currently located in the industries of low-voltage electrical appliances, high-voltage electrical appliances and electronic information manufacturing
    .
    Downstream customers are mainly: Chint Electric, Delixi, Hongfa Co.
    , Ltd.
    , Schneider, ABB, and Omron
    .
    The main raw materials used in the production of electrical contact materials are silver, copper and other non-ferrous metals
    .
    Internationally, the world’s major electrical contact material manufacturers are mainly concentrated in Europe and Japan.
    Due to the rapid development of basic science and sufficient reserves of scientific and technological talents, they are the world leader in new material research and development capabilities, manufacturing process research capabilities, and production automation.
    Position, leading the development of the entire industry
    .
    At present, foreign companies that produce and develop electrical contact materials mainly include German Daduk, Swiss Metalor, Belgian Umicore, and Nippon Tanaka
    .
    Domestic competitors in the field of electrical contact materials include: Fuda Alloy (SH: 603045), Jinge Electric, Wenzhou Hongfeng (SZ: 300283) and so on
    .
    The gross profit margin of Guiyan Platinum is between 2% and 5%: Wenzhou Hongfeng (SZ: 300283) is more than 9%: Fuda Alloy (SH: 603045) is more than 13%: Guiyan Platinum The gross profit margin is less than half that of competitors
    .
    ?Precious metal precursor materials Precious metal precursor materials refer to precious metal chemicals and precious metal compounds.
    The main products are precious metal salts, precious metal complexes, precious metal homogeneous catalysts, etc.
    , which are mainly used in petrochemical, fine chemical, coal chemical, chemical and pharmaceutical industries Directly used as a catalyst or a precursor material for preparing catalysts, it is an important raw material for the noble metal electroplating industry and anti-cancer drugs
    .
    Among the company's precious metal materials, the precursor projects are mainly used in fine chemicals and pharmaceuticals, and the market is currently in a state of short supply
    .
    In order to cope with the growth of downstream demand, the company aims to build a production capacity of 299 tons per year, and plans to reach production by the end of 2020
    .
    In 2019, the company's precious metal precursor production capacity was 71 tons and the output was 85 tons
    .
    With the new production capacity put into operation at the end of the year, the production capacity of the drive body will increase before 2021-22
    .
    It is estimated that after the project is completed, the precious metal precursor material series products will reach an annual output of 299 tons and annual sales of 2.
    682 billion yuan
    .
    The project mainly includes two categories of precious metal inorganic precursor materials and precious metal organic precursor materials
    .
    Organic precursor materials are mainly used as homogeneous catalysts and are widely used in petrochemical, chemical and pharmaceutical industries
    .
    Inorganic precursor materials are important basic raw materials for the preparation of precious metal homogeneous catalysts and precious metal heterogeneous catalysts.
    They are widely used in automobile exhaust purification catalysts, petrochemicals, chemical pharmaceuticals, organic silicon, chlor-alkali electrodes, acetic acid, electroplating and other industries
    .
    The construction of the project will adopt the most advanced technology and equipment at home and abroad
    .
    After completion, it will have dozens of precious metal precursor production lines, becoming a domestic first-class and internationally advanced precious metal precursor material industrial base
    .
    Although this gross profit margin fluctuates, it is basically maintained at a gross profit level of 5%-5.
    5%, and the overall gross profit margin is relatively stable
    .
    ?Motor Vehicle Exhaust Purification Catalyst Company's main body responsible for the production and sales of motor vehicle exhaust purification catalysts and purifiers is Kunming Guiyan Catalyst Co.
    , Ltd.
    , and the company holds 89.
    91% of the shares
    .
    In 2019, Kunming Guiyan Catalyst Company achieved revenue of 2.
    5 billion yuan, +122.
    6% year-on-year, but its net profit was -91.
    6% year-on-year to only 2.
    2148 million yuan
    .
    By 2020H1, Kunming Guiyan Catalyst Company will achieve revenue of 1.
    5 billion yuan and net profit of 29.
    8 million yuan
    .
    At present, the company has a production capacity of 4 million liters of catalytic converters for motor vehicles.
    The “National VI Upgrade and Renovation Project for Motor Vehicle Catalyst Production Lines” under construction is expected to be completed and put into production at the end of 2020.
    By then, the production capacity of National VI catalysts will be increased by 2.
    15 million liters per year
    .
    The gross profit margin dropped from 13% to 6%
    .
    Kay counterparts have big catalysis, Johnson Matthey, Umicore, BASF
    .
    Enterprise: country porcelain material (300,285): to provide a full range of automotive catalytic solution other than precious metals; Mason shares (SZ: 002643): SCR catalyst carrier and zeolite
    .
    The gross profit of Kaida Catalysis (OC830974) is more than 6.
    3%, and the gross profit margin is declining like Guiyan Platinum
    .
    The income scale and gross profit rate of the two are similar
    .
    ?Precious metal industrial catalyst materials business is in charge of the subsidiary Guiyan Industrial Catalyst (Yunnan) Co.
    , Ltd.

    .
    Guiyan Industrial Catalyst Company is committed to the development, production and sales of industrial catalysts (excluding automobile exhaust purification catalysts) and intermediate products for coal chemical, petrochemical, fine chemical and other industries
    .
    At present, the main products of Guiyan Industrial Catalyst Company are benzene desulfurization palladium catalysts, palladium catalysts for hydrogen peroxide, catalysts for gas purification and industrial waste gas treatment, and carbon-supported precious metal catalysts
    .
    In 2015, the precious metal industrial catalyst materials revenue was 340 million yuan, and the gross profit margin was 11.
    32%
    .
    In 2019, the precious metal industry catalyst materials revenue was 180 million yuan, and the gross profit margin was 11.
    65%
    .
    Among them, the benzene desulfurization palladium catalyst and alumina catalyst market performed well
    .
    Benzene desulfurization catalyst and activated alumina adsorbent are mainly used to deeply remove hydrogen sulfide, carbon disulfide, mercaptans, sulfides, thiophene and other sulfides in benzene
    .
    The company currently has a production line with an annual production capacity of 100 tons.
    The process technology and production scale are leading domestically, and it has been able to completely replace imported products
    .
    The company's benzene desulfurization palladium catalyst has a market share of about 50% in the adipic acid and caprolactam industries
    .
    Desulfurization catalyst competitors are: three-dimensional works (002469.
    SZ), trimer environmental protection, oil and gas fields Southwest Gas Research Institute, Qilu Petrochemical Company
    .
    The gross profit margin of Guiyan Platinum is close to that of Sanju Environmental Protection, but far lower than that of 3D Engineering
    .
    Companies that can refer to the carbon-supported precious metal catalyst are: Xi'an Kaili and Shaanxi Ruike
    .
    The gross profit margins of Xi'an Kaili and Shaanxi Ruike are above 17%, which is much higher than that of Guiyan Platinum
    .
    ?Precious metal information functional materials The excellent comprehensive properties of precious metals such as heat, electricity, magnetism, force, etc.
    , make precious metal film materials, precious metal electrical contact materials, precious metal bonding materials, precious metal brazing materials, and precious metal electronic pastes widely used in the new generation Communications, networks, computers, Internet of Things, triple play, new flat panel displays, high-performance integrated circuits and big data have become indispensable key materials in the field of new generation information technology
    .
    Electronic paste: According to different materials, electronic pastes are divided into back aluminum, back silver, and positive silver.
    Among them, the production of positive silver paste has high technical barriers.
    DuPont of the United States, Heraeus of Germany, Samsung of South Korea and Shuohe of Taiwan account for about the world 90% of the silver market
    .
    National Ceramic Materials (300285), the company's electronic paste revenue in 2017 was 155 million yuan, with a gross profit of 28 million yuan
    .
    The main business scope of the subsidiary Hongyuan Optoelectronics is solar conductive electronic paste (related products in the field of solar cells mainly include conventional aluminum paste, PERC aluminum paste, etc.
    , accounting for about 15% of the cost), and the main business scope of Supu Electronics is MLCC paste It is a leading MLCC electrode paste supplier in China (electronic paste products related to passive electronic components mainly include nickel internal electrode paste and copper terminal electrode paste, which account for more than 90% of the cost).
    It has achieved aluminum in 15 years.
    The market share of pulp is the second, and the market share of back silver is the third
    .
    Sanhuan Group: The company currently mainly produces resistor pastes.
    The internationally better companies for resistor pastes include Tanaka Precious Metals and Sumitomo in Japan, and DuPont in the United States
    .
    This field is a highly monopolistic industry, and domestic mass production is not yet possible
    .
    Sanhuan is currently the leading resistor paste manufacturer in China, breaking the monopoly of foreign manufacturers
    .
    It can be seen from the above that Guiyan Platinum is known as the operation of the entire precious metal industry chain.
    Almost every piece of precious metal related has been involved.
    It has a wide range of business, but in many segments, the scale is not as large as the leading enterprise, and the profitability is much inferior
    .
    In addition, most of the revenue of Guiyan Platinum also comes from second-tier dealers of precious metals
    .
    This has resulted in its gross profit margin, net profit margin, and return on capital that are far lower than competitors in related fields
    .
    Therefore, it is typically big but not strong
    .
    In addition, Guiyan Platinum has always emphasized the operation of the entire industry chain, which has a synergistic effect
    .
    In fact, the customers of precious metal recycling, precious metal materials, and precious metal trading are different, and there is no synergy effect at all
    .
    If there are synergies, then the company should have lower costs than competitors and higher gross profit margins than peers
    .
    However, in comparison, it is lower than peers who only do a single business and do not operate the entire industry chain.

    .
    This also shows that the so-called synergistic effect does not exist
    .
    Guiyan Platinum is the epitome of many domestic companies, blindly pursuing scale expansion, but it does not pay attention to fine management and other aspects, resulting in scale expansion, but at the same time the profitability is not strong
    .
    Guiyan Platinum is involved in too many fields, blindly greedy for more completeness, unable to concentrate, focus on resources, fail to do a good job in the core sector, the most valuable sector, and do not occupy the commanding heights of the industrial chain
    .
    Although such companies have good short-term performance, long-term returns are worrying
    .
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