Binhua Co. (601678) Tracking Report: Downward Product Prices Slow Down Performance, New Projects Boost Transformation and Development

Performance in 2019 has improved.

The company announced its 2019 performance report, and the company expects to achieve a total operating revenue of 61 in the full year of 2019.

61 ppm, a decrease of 8 per year.

74%, expected to achieve net profit attributable to mothers4.

6.5 billion, down 33 each year.

77% in the fourth quarter is expected to achieve revenue of 15.

7.4 billion, down 2 every year.

11% in the fourth quarter is expected to achieve net profit attributable to mothers.

2 billion, the previous growth rate was 192%.

Performance is in line with market expectations.

The prices of major products fell and profits fell.

In 2019, the company’s main products, caustic soda, and propylene oxide prices have decreased to a certain extent compared with the same period of the previous year. According to wind data, from January to December 2019, the circulating price price fell by 16%, and the price of caustic soda (hundred percent) dropped by 25%.The average price of its main raw materials fell by a relatively small margin, and the price of millimeters rose by 13%, leading to increased cost pressure on the company and a 武汉夜生活网 decline in product gross profit.

Actively transform and upgrade, and pay attention to the long-term development of the company.

Initially, the company actively transformed and upgraded its development. In the first half of 2019, the company’s 6,000-ton electronic-grade hydrofluoric acid plant was successfully started, and 1,000-ton lithium hexafluorophosphate had been converted into qualified products.

The epichlorohydrin plant was successfully commissioned in May, and qualified products were replenished on July 3, and sales began in July. The above products are expected to contribute incremental performance in 2020.

The company intends to raise RMB 2.4 billion of convertible bonds to invest in the “carbon three carbon four comprehensive utilization project (Phase 1)”, and the total project investment is expected to be 6重庆耍耍网3.

US $ 3.4 billion, which mainly includes a 60-inch plug-in dehydrogenation project and an 80-inch butane replacement project. It is expected to achieve an average annual net profit of 6 in normal years after commissioning.

7.2 billion US dollars, the project is expected to start a new chapter in the company’s development after the project is put into production.

Investment suggestion: It is estimated that the company’s net profit attributable to the parent will be 6 in 2020-2021.

5.3 billion, 6.

8.8 billion yuan, corresponding to 0 EPS.

42 yuan, 0.

45 yuan, corresponding to the current PE 14.

0X, 13.

3 times.

As a leading chlor-alkali leading company, the company has gradually actively transformed its development and maintained its “overweight” rating.

Risk reminders: Product demand growth is not up to expectations, the company’s new project production progress is gradually expected, the risk of changes in trade policies, etc.