Hualu Hengsheng (600426): Real gold is not afraid of refining and prove the strength of the leader

Hualu Hengsheng (600426): Real gold is not afraid of refining and prove the strength of the leader

Highlights of the report Description Hualu Hengsheng announced the 2019 Interim Report, and the company achieved operating income of 70.

8 ppm, an increase of ten years.

1%, net profit attributable to shareholders of listed companies13.

100 million, down 22 a year.

1%, after deduction is 12.

9 trillion, down 23 a year.

1%.

The company’s basic profit income is zero.

81 yuan.

In the second quarter of 2019, the company achieved operating income of 35.

3 ‰, which decreases by 0 every year.

7%, attributable net profit 6.

700 million, down 29 every year.

5%.

  Incident review The company’s product production and sales increased, benefiting from increased production capacity release.

The company is a multi-industry new chemical enterprise. Its main products include fertilizers, acetic acid and derivatives, organic amines, polyols, adipic acid and 南京桑拿网 intermediates.

  In the first half of 2019, the company’s output of fertilizers, organic amines, adipic acid and intermediates, acetic acid and derivatives and polyols were 134.

7, 16.

9, 16.

7, 31.

8 and 31.

9 Initially, there were an increase of 43 compared to the same period last year.

7, -0.

6, 0.

7, 0.

0 and 20.

1 ounce.

The main driving force for the growth of the company’s production and sales comes from some of the company’s fertilizer functionalization projects that were put into production last year and 50 per year of plasma implantation projects.

  Most of the product prices in the second quarter went down month-on-month, and urea pushed up fertilizer prices.

According to the company’s announcement, in the second quarter of 2019, the company’s average sales prices of adipic acid and intermediates, acetic acid and derivatives and polyols decreased by 81.

6,332.

2 and 415.

2 yuan / ton, organic amine and fertilizer prices increased by 65.

6 and 120.

1 yuan / ton.

Due to low inventory levels and other factors, urea prices remained relatively stable in the second quarter, which was the main motive force for fertilizer prices.

In terms of raw materials, the price of coal dropped slightly each year in the first half of the year, and the price of benzene decreased every year.

  The expense ratio increased during the period, and profitability declined.In the first half of 2019, the company’s period expenses7.

1%, an increase of 3 over the same period last year.

0pct.

The sales expense ratio and R & D expense ratio are 2 respectively.

7% and 2.

3%, an increase of 1 over the same period last year.

1pct and 1.

8 points.

The former growth was mainly due to the increase in sales and freight, while the other was due to the increase in expensed R & D expenditure.

Affected by the decline in the prosperity of the chemical industry, the company’s gross profit margin was 29.

4%, a decrease of 3 compared with the same period last year.

8pct, net profit is 18.

5%, 5 lower than the same period last year.

5 points.

  Projects such as adipic acid were launched and continue to be optimistic about the company’s future growth.

According to the announcement, the company’s refined adipic acid quality improvement project and amide and nylon new material projects have begun construction, technology, design and construction contracts have begun to develop gradually, and bidding for long-term manufacturing equipment has begun.

The market position of the proposed investment project is high-end, which will give full play to the company’s internal gasification platform and eventually build an integrated new material industry base.

  The company has successfully created a “multi-line, one-line” circular economy and a flexible multi-generation production operation model, and plans to invest in projects to support future development.

The EPS is expected to be 1 in 19-21.

53/1.

66/1.

88 yuan, maintain “Buy” rating.

  Risk Warning: 1.

Downstream demand was less than expected, and product prices fell sharply; 2.

Projects under construction are progressing less than expected.