Youyan New Materials (600206): Entering the electro-acoustic magnetic materials manufacturing industry

Established a joint venture to acquire a neodymium-iron-boron magnetic material manufacturing company.

The company issued an announcement on December 13. The company through its holding subsidiaries Youyan Rare Earth and Zhukou Group jointly funded the establishment of Youyan Rare Earth (Rongcheng) Co., Ltd. and Youyan Rare Earth (Qingdao) Co., Ltd., with 51% and 49% stake respectively.At the same time, the two companies respectively acquired 100% equity of Rongcheng Hongxiushan Magnetic Industry Co., Ltd. of Zhukou Group and its subsidiary Qingdao Magnet Technology Co., Ltd. for a total of 57.36 million yuan in cash.

Considering that Hongxiushan’s (including Magnetec) revenue in 2018 was 2.

250 thousand yuan, net profit 12.32 million yuan, the acquisition of assets corresponding to 2018 PE 4.

7 times.

The nominal Qingdao Magnet is a leader in the production of high-performance magnetic discs for electroacoustics. There is a continuous opportunity for research and development of new materials to lay down the downstream sintered NdFeB field.

According to the official website, Qingdao Magnet has a complete set of production lines from magnetic material blanks to deep processing of finished products. Its main products are sold to head manufacturers of electroacoustic products. It is a leading enterprise in the production of high-performance magnetic sheets for electroacoustics.

The first acquisition of the company is to quickly cut into the field of downstream sintered neodymium iron boron and complete the upstream and downstream layout of the industrial chain.

Yuyan Rare Earth, a subsidiary of the company, has been a leading manufacturer of domestic rare earth metal powders and a major supplier of raw materials for major domestic sintered neodymium iron boron producers. It has an alternative technical advantage and merges and merges neodymium iron boron producers.The industrial chain extends downstream and relies on the mature technology and field management advantages of the target company in the field of magnetic material production to achieve a strong alliance.

The second is to choose the electro-acoustic field with a breakthrough potential for future development and fight a differentiated competitive strategy.

The company first entered the field of sintered neodymium-iron-boron production, avoiding the current downstream production of magnetic materials for electric motors, which are currently competing for heat, and entering the gradually growing magnetic materials for electro-acoustics, instead of cooperating with leading companies in the current electro-acoustic field, relying on its existingThe industry level and market development channels can effectively exert their respective advantages and maintain high value-added products.

In particular, the recent rapid rise of TWS headsets has driven the rapid growth of magnetic materials for electroacoustics, and the company’s entry into the supply chain of head enterprises is expected to benefit significantly.

The upstream and downstream layout of the company’s magnetic plate has begun to take shape, and it is two-pronged with the coupling magnetic material. The high-end magnetic material field is expected to become another company’s future performance growth point.

Rare earth magnetic materials are mainly divided into two fields: coaxial neodymium iron boron and sintered neodymium iron boron. After the company acquired and acquired the neodymium iron boron standard, the entire industrial chain layout from rare earth metals to rare earth magnetic materials and downstream products has been formed.

The company has successfully deployed the NdFeB production line through the national Jia Magnetic Materials established by Hubei Haopeng. The acquisition focuses on the layout of the sintered NdFeB production line and also provides the company with technical support for further penetration into the super permanent magnet motor market.Transforming the future, the demand for magnetic materials in the automotive and consumer electronics fields continues to expand. The company is expected to benefit significantly and its performance will continue to increase.

The strategy focuses on three areas of electromagnetic light, and future performance growth is worth looking forward to.

The first is the electrical sector, which mainly relies on the production of high-end metal targets. In the future, it is expected to benefit from the increase in demand brought by the accelerated development of 5G and chip technology breakthroughs such as internal logic and storage.

The second is the magnetic plate. The target is the field of neodymium-iron-boron magnetic materials with the largest demand. Currently, the upstream and downstream layouts have been completed. First, it is cut into the manufacture of electro-acoustic magnetic materials. It is expected to continue to expand to other areas downstream of magnetic materials in the future.

The third is the light sector. The company’s products involve high-purity germanium single crystals, germanium-based compounds, and zinc sulfide. They are mainly used in solar cells and infrared optical glass materials. It is expected to significantly benefit the growth of civilian infrared demand in the future;It is suspected that the second-generation semiconductor gallium oxide single crystal is currently mainly used in the field of optoelectronics.

Give “Buy-A” investment rating, 6-month target price of 16 yuan.

The company has completed the upstream and downstream layout of the magnetic materials sector. It is expected to benefit significantly from the demand for magnetic materials in automobiles and consumer electronics in the future, and to rapidly grow the company’s high-end metal target and optoelectronic materials business.
In 2021 they will be 0.

12, 0.

16 and 0.

twenty one.

Considering that the company’s current estimated dynamic of about 夜来香体验网 110x is above the historical relative level, it may also exceed the similar main Jiangfeng Electronics (200x) and Ashichuang (220x), plus the technical barriers to the company’s ownership in the three major business areasWith a breakthrough market outlook, the company’s 2020 dynamic price-earnings ratio is 100x, with a six-month target price of 16 yuan.

Risk reminders: 1) The company’s product capacity release is less than expected; 2) Downstream industry demand is less than expected.

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