Hualu Hengsheng (600426) third quarterly report commented: obvious cost advantage under unfavorable environment
Event: The company released the third quarter report of 2019, and realized operating income of 106 during the reporting period.
11 ‰, at least -2.
2%, net profit attributable to mother 19.
1.2 billion, at least -24.
55%, earnings per share 四川耍耍网 1.
176 yuan, ROE 14.
Among them, Q3 achieved 35 operating income in a single quarter.
350,000 yuan, at least -8.
06%, net profit attributable to mother 6.
30,000 yuan, at least -29.
Main points: 1.
The main products are still at the bottom of the cycle. The company’s cost advantage is obviously the leading coal chemical industry. The company uses coal, benzene, and propylene as raw materials and relies on core technologies of clean coal gasification to create a “one-head, multi-line” collaborative co-production system to achieve productsDiversified and flexible production, stable operation, and continuous optimization and upgrading to reduce costs and prove yourself at the bottom of the cycle.
From Q1 to Q3 in 2019, the company achieved net profit after deduction 北京桑拿洗浴保健 of non-return after returning to the mother6.
3.6 billion, 6.
5.6 billion, 5.
8.6 billion yuan, totaling 18.
79 trillion, at least -25.
As the company transformed and upgraded the complete ammonia and urea plant into operation in May 2018, in October 2018, the 50-ton / year butyl project was put into operation. In 2019, the company’s production and sales of polyols and fertilizers increased significantly.
The first three quarters of the company’s main product output and sales totaled 355.
2 Initial, 327.
36 Initially, the annual increase was 33.
71% and 34.
On January 9, 2019, the company’s main product urea (1911 yuan / ton, -1.
74%), methanol (2313 yuan / ton, -21.
42%), acetic acid (2960 yuan / ton, -35.
77%), adipic acid (8371 yuan / ton, -23.
91%), DMF (4743 yuan / ton, -21.
59%), cholesterol (4720 yuan / ton, -37.
67%), n-butanol (6777 yuan / ton, -13.
35%), isooctanol (7637 yuan / ton, -11.
84%), etc. Most of the average price exceeded expectations, the company’s gross sales margin from 32.
92% formaldehyde to 28.68%.
By quarter, acetyl and glucose improved in the third quarter.
As a result of the attack on the Saudi oil facility on September 14, the average price of cholesterol was 4,539 yuan / ton, which was +1.
2%; the price difference is 559 yuan / ton, +19.
Due to the explosion of Henan Yima Gasification Plant on July 19th, the production of ethyl acetate was suspended for 30 seconds, and the price of acetic acid was repaired. The average price of acetic acid was 3075 yuan / ton, + 13% month-on-month; the price difference was 1931 yuan / ton, +19 month-on-month.
The prices of urea and methanol were dispersed from the previous month.
The company’s Q3 single quarter sales gross margin decreased by 2 from the previous quarter.
87 up to 27.
31%, dazzling performance compared to peers.
The company’s three fee control was stable, and the chain ratio declined.
Asset-liability ratio ranked 26.
Continue to promote new projects Construction company 150 investment in green chemical new materials projects (a total investment of 10 billion US dollars) has been included in the Shandong new and old kinetic energy conversion major project library of the first batch of 450 preferred projects.
The company builds the cyclohexanone-caprolactam-nylon 6 (polyamide) chip industry chain and integrates the new material industry base.
In the third quarter of 2019, the company established fixed assets, cash payments for intangible assets and other long-term assets was 4.
4.9 billion, an increase of 2 from the previous month.
(1) Quality improvement project of refined adipic acid: newly-built 16.
66 spindle single line refined adipic acid and related equipment.
Plan to invest 15.
7.2 billion, with a construction period of 24 months, and an average annual operating income of 19 is expected.
86 ppm, total profit2.
(2) New amide and nylon material project: 30 new caprolactam (20 of which are inserted for own use), 20 formic acid inserted, 20 of nylon 6 slice replaced, and 48 sulfur.
Planned investment 49.
USD 800 million with a construction period of 30 months and an average annual operating income of 56 is expected.
1.3 billion, profit maximization4.
Earnings forecast and rating We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 25.
6.8 billion, 27.
7.2 billion and 31.
110,000 yuan, corresponding to EPS 1.
58 yuan, 1.
70 yuan and 1.
91 yuan, PE 10.
3X, 9.6X and 8.
5X, considering that the company is a leader in high-quality coal chemical industry, has obvious cost advantages, and has advanced the construction of new projects in an orderly manner, maintaining a “Buy” rating.
Risk reminder: Macroeconomic fluctuations, product prices increase, and the project’s production progress is less than expected.