Hualu Hengsheng (600426): The price of chemical products in line with expectations in Q1 is 杭州夜网论坛 expected to stop falling and rebound

In the first quarter of 2019, the net profit was 13%, and the performance was in line with expectations. Hualu Hengsheng released the first quarter report of 2019, and the company achieved operating income of 35 in the first quarter of 2019.

4 trillion, an increase of 3 in ten years.

0%, net profit 6.

42 ppm, a decrease of 12 years ago.

5%, performance is in line with expectations.

Follow 16.

2.7 billion of the latest equity calculation, the corresponding EPS is 0.

39 yuan.

We expect the company’s EPS for 2019-2021 to be 1.

96/2.

32/2.

67 yuan to maintain the “overweight” level.

The decline in main product prices has weighed on performance, and the company ‘s expense ratio has increased during the reporting period. According to Baichuan Information, the average price of urea / DMF / adipic acid / acetic acid / octanol in East China in 2019Q1 was 0.

19/0.

49/0.

85/0.

31/0.

810,000 yuan / ton, each year changes 0% /-25% /-35% /-33% /-4%.

The company’s fertilizers / organic amines / adipic acid and intermediates / acetic acid and derivatives / polyols achieved sales of 57 respectively.

5/8.

6/5.

9/15.

2/17.

4 is the highest, increasing by 57% / 1% / 11% / 11% / 220% each year, corresponding to the realization of revenue 8.

2/4.

2/4.

3/4.

3/8.

USD 500 million, with 51% /-21% /-19% /-30% / 130% changes each year.

Reduce the company’s comprehensive gross profit margin1.

6pct to 28.

5%, sales / management / finance / R & D expense ratios changed by 1.

0/1.

7 / -0.

1/1.

4 points to 2.

7% / 2.

7% / 1.3% / 1.

8%.

Recently, the prices of chemical products and raw materials have fallen synchronously, and the price of urea has recovered. Recently, the company’s chemical product prices have continued to decline. According to Baichuan Information, the prices of DMF / adipic acid / acetic acid / octanol in East China were 0 in late April.

50/0.

81/0.

30/0.

RMB 790,000 / ton, down 4% / 11% / 7% / 3% from the high point in late February, but taking into account the price of raw materials such as pure benzene (East China) / Ding (East China) fell 11% / 7%The price of bituminous coal (Shanxi excellent blend, Q5500) rose slightly by 1%. At the same time, due to the recovery of demand for industrial procurement and agricultural fertilizer preparation, the urea price in Shandong area rose by 9% from a February low to 2070 yuan / ton, and the company’s overall profitabilitySeek to maintain the desired level.

The company plans to invest US $ 6.6 billion in the construction of a national lactam and nylon new material project and an adipic acid project. The company plans to invest 49.

$ 8 trillion for the construction of a new caprolactam and nylon new material project, with a construction period of 30 months. After completion, it can produce 30 caprolactam (20 of which are for personal use), 20 formic acid derivatives, 20 samples of nylon 6 slices, 480,000 tons of ammonium sulfate, etc.The company expects to achieve annual maximum profit.

4.6 billion; planned investment 15.

US $ 700 million to build a refined adipic acid quality improvement project with a construction period of 24 months and an annual output of 16 after completion.

66 Initial adipic acid, the company expects to achieve annual maximum profit 2.

9.6 billion.

The project belongs to the new and old kinetic energy conversion project in Shandong. Upon completion, it will further extend the company’s industrial chain and increase the company’s performance.

Maintaining the “overweight” rating We predict that the company’s EPS for 2019-2021 will be 1.

96/2.

32/2.

67 yuan to maintain the “overweight” level.

Risk Warning: Downstream demand is not up to the expected risk, and raw material prices fluctuate greatly.

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