A: Basic Information of the Company
Company Full Name: Jiangsu Zhengdan Chemical Industry Co., Ltd.
Stock Code: 300641
Stock Abbreviation: Zhengdan Stock
Region: Zhenjiang City, Jiangsu Province
Industry: Chemical Raw Materials and Chemical Products Manufacturing
Establishment Date: September 8, 2004
Issue Price: 7.67 CNY/share
Founders: Cao Lin, Cao Zhenguo
Company Website: http://www.zdan.com/
Registered Address: No. 1 Dongfang Road, Dasha, Zhenjiang New District, Jiangsu Province
Total Share Capital: 401 million shares
Market Capitalization: 16.151 billion CNY (as of October 24, 2024)
Business Scope: Research, development, production, and sales of specialty fine chemicals and high-end environmental protection new materials
Company Profile: Zhengdan Stock, established on September 8, 2004, is a high-tech enterprise focusing on the research, development, production, and sales of specialty fine chemicals and high-end environmental protection new materials. The company's main products include Trimellitic anhydride (TMA), Trimellitic acid tricyclohexyl ester (TOTM), Ethyl toluate, and high boiling point aromatic solvents. The company's products are widely used in fields such as environmental protection plasticizers, powder coatings, high-grade insulation materials, and has a leading position in the TMA market globally. With nearly two decades of technical accumulation, the company has formed its own core technical advantages in product design, development, verification, manufacturing, and other aspects, meeting customers' diversified customization needs and forming strong market competitiveness.
B: Value Investment Analysis
Key Financial Indicators:
Revenue: 2.595 billion CNY for the period of January-September 2024, a year-on-year increase of 130.28%.
Net Profit: 824 million CNY for the period of January-September 2024, a year-on-year increase of 2,949.37%.
Market Capitalization: 16.151 billion CNY (as of October 24, 2024).
PE (TTM): According to the data from Eastmoney, Zhengdan Stock's PE (TTM) is 16.18, and the price-to-book ratio is 3.47.
Company Investment Value:
Zhengdan Stock, as a leading enterprise in the field of specialty fine chemicals, demonstrates a high investment value with its advantages in the research and development, production, and sales of specialty fine chemicals and high-end environmental protection new materials. The company's products have entered the supply chains of well-known automotive manufacturers such as SAIC General Motors, Dongfeng Honda, GAC Honda, Dongfeng Nissan, Changan Automobile, Great Wall Motor, BYD, NIO, XPeng, and Li Auto, as well as engineering machinery manufacturers such as Caterpillar and Sany, and communication electronics manufacturers such as Molex and Tefa Information, showing the market recognition and brand influence of its products.
Company Growth Potential:
The growth potential of Zhengdan Stock is mainly reflected in the following aspects:
Technological Innovation: The company has a deep technical accumulation in the field of specialty fine chemicals and continuously launches new products to meet market demands.
Market Demand: With the rapid development of industries such as automotive, engineering machinery, rail transit, and communication electronics, the demand for high-performance specialty fine chemicals is increasing, providing a broad market space for the company.
Industrial Chain Integration: The company has built an integrated upstream and downstream film material industry strategy, laying a solid foundation for the sustainable development of the business.
Industry Support Policies:
National support policies for strategic emerging industries such as new materials and high-end equipment manufacturing provide a favorable external environment for Zhengdan Stock. With the development of related industries, it will further promote the growth of the specialty fine chemicals industry, bringing more development opportunities for the company.
International Policy Risks:
Zhengdan Stock may face risks such as changes in trade policies and exchange rate fluctuations in the process of internationalization. The company needs to closely monitor international market dynamics and flexibly adjust market strategies to cope with potential policy risks.
A.Top's Investment Review:
Zhengdan Stock, as a leading enterprise in the field of specialty fine chemicals, shows strong investment value and growth potential due to its technological strength, market prospects, and industrial chain integration. However, the company may also face certain policy risks in the process of internationalization. Investors should comprehensively consider the company's technical capabilities, market prospects, and potential risks when considering investing in Zhengdan Stock, and make rational investment decisions.