KAIMEITE GASES(SZ:002549)2022-12-06 11:28Company Overview - Hunan Kaimete Gas Co., Ltd. was established in 1991 and is a subsidiary of Sinopec, focusing on the recovery and utilization of waste gases from large petrochemical enterprises [1] - The company officially listed on the SME board in 2011 and has five subsidiaries located in Anqing, Huizhou, Changling, Hainan, and Fujian [2] Production and Sales - The company primarily produces high-purity liquid gases such as carbon dioxide, hydrogen, methane, and carbon monoxide, with a focus on the South Central, Pearl River Delta, and Yangtze River Delta regions [2] - In 2015, the company reported sales of over 20,000 tons of liquid carbon dioxide, with food-grade liquid carbon dioxide accounting for 8,900 tons, while the rest is used for industrial purposes [2] Market Demand and Pricing - The price of liquid carbon dioxide is adjusted annually based on market conditions, with stable demand from downstream customers [2] - The company has maintained stable sales of food-grade liquid carbon dioxide, while industrial demand has shown signs of decline [2] Client Relationships - The absence of Coca-Cola in the top five clients is due to the aggregation of sales across multiple factories, which does not reflect in the top client list individually [3] - The company is cautious in signing contracts with upstream suppliers to avoid past issues affecting profitability [3] Industry Insights - The gas industry has a high national demand for carbon dioxide, but it is fragmented with high distribution costs [4] - Kaimete is currently the largest domestic producer of food-grade liquid carbon dioxide, benefiting from high profit margins [4] Future Directions - The company plans to expand into other projects and products while maintaining its core business in waste gas recovery [4] - There is potential for growth in the gas industry, with a focus on diversifying gas products and cautiously evaluating new projects [4] Project Updates - The Xinjiang project, a joint investment with China Shenhua Coal to Oil Chemical Co., aims to extract rare gases and is expected to be completed this year [5] - The electronic gas market is dominated by major players like Linde and Air Liquide, with increasing purity and quality requirements [5] Carbon Trading - The company has explored participation in carbon trading markets but has not yet established a clear method for calculating emission reductions [6]