启程有限公司：以创新解决方案引领全球沉淀硅市场，实现高端转型与增长

Leading Enterprise in Precipitated Silica: Qicheng Co., Ltd. Rides the Trend for High-End Transformation and Growth

```po msgid "As a leader in China’s precipitated silica industry, Qicheng Co., Ltd. is well-positioned for high-end transformation and growth. The company is a leading enterprise in China’s precipitated silica sector, with a complete industrial chain from raw materials (sulfuric acid, sodium silicate) to the final product (precipitated silica). It is also one of the world’s largest producers of high-dispersion silica for green tires and silica for animal nutrition carriers . In the first three quarters of 2024, the company achieved a net profit attributable to shareholders of approximately RMB 379 million, a year-on-year increase of about 24.34%. With the accelerated commissioning of new production capacity and high-value-added products, there is significant room for future performance growth ." msgstr "" ```

```po msgid "Green tires are gaining momentum, and the precipitated silica industry maintains a positive outlook. As a dedicated material for green tires, high-dispersion silica reduces rolling resistance by approximately 30% compared to carbon black and can replace carbon black to a greater extent. Benefiting from the rapid development of the automotive industry and the greening trend in tire production, demand for silica for tires is expected to continue rising. Beyond tire applications, demand in other fields such as silicone rubber and toothpaste is also on the upswing . Globally, high-end application areas of precipitated silica are mainly dominated by large multinational chemical enterprises, creating room for domestic substitution ." msgstr "绿色轮胎正在获得动力，沉淀硅土行业保持积极的前景。作为绿色轮胎的专用材料，高分散硅土与炭黑相比可将滚动阻力降低约30%，并且在更大程度上可以替代炭黑。受益于汽车工业的快速发展和轮胎生产的绿色趋势，轮胎用硅土的需求预计将继续上升。除了轮胎应用外，硅橡胶和牙膏等其他领域的需求也在上升。全球范围内，沉淀硅土的高端应用领域主要由大型跨国化工企业主导，为国内替代创造了空间。" ```

The company’s global layout highlights its scale advantages, and technological leadership supports high-end transformation. As China’s largest producer of precipitated silica, it has an annual production capacity of 330,000 tons. With the gradual commissioning of fund-raising projects and the second phase of its Thai plant, the company will add 100,000 tons of new capacity. On this basis, it is also actively seeking opportunities to build new production bases overseas to advance its global layout. Meanwhile, the company emphasizes R&D-driven development, using its technology platform to actively develop a variety of silica products. For instance, silica for oral care and high-dispersion silica derived from biomass (rice husks) have already achieved mass commercial supply. Additionally, the company plans to construct a project for high-end products such as 3,044 tons/year silica microspheres, which is expected to realize domestic substitution of such products, enhance product added value, and further unlock growth potential.

We believe Qicheng, as one of the global leaders in precipitated silica, continues to advance domestic and overseas production capacity layout, expanding its scale advantages. Simultaneously, the company has built a technology platform for silica products and accelerated the implementation of high-end projects such as silica microspheres, promising strong future growth. We predict the company’s net profit attributable to shareholders will reach RMB 503 million, RMB 613 million, and RMB 711 million in 2024, 2025, and 2026 respectively, corresponding to PE ratios of 15x, 12x, and 10x (based on the closing price on December 16). We initiate coverage with a "Buy" rating.

*Source: 风, 永兴证券研究院 (2024年12月16日收盘价) *

*Source: 风, 永兴证券研究院 *

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