Hualu Hengsheng (600426) Company Annual Report Comment: High-quality Coal Chemical Leading New Project Opens Growth

Hualu Hengsheng (600426) Company Annual Report Comment: High-quality Coal Chemical Leading New Project Opens Growth

Hualu Hengsheng released the 2018 annual report.

In 2018, Hualu Hengsheng achieved operating income of 143.

57 trillion, +37 a year.

94%; realized net profit attributable to parent company 30.

20 trillion, +147 a year.

10%, net profit attributable to mothers exceeds the three-year total of 2015-2017.

First and foremost, realizing the basic benefits.

86 yuan, 南京夜网 expected average return on net assets 28.

33%.

Revenues increase every year, and product profits increase.

In 2018, the sales volume of most of the company’s products increased, and due to rising product prices, the revenue of certain products increased on average.The company’s fertilizer, organic amines, adipic acid and intermediate products, acetic acid and intermediate products, polyols and other products had annual revenues respectively.Up 47.

8%, 9.

9%, 0.

1%, 49.

0%, 38.

0% and 90.

4%.

At the same time, the price of raw materials has not fluctuated much, and the product price has increased. The company’s product profit has increased. In 2018, the company’s gross profit margins of fertilizer, organic amine, adipic acid and intermediate products, acetic acid and intermediate products increased by 15.

1, 8.

9, 5.

8, 24.

2 units.

The gross profit of acetic acid and derivatives accounted for 31.

1%.

In 2018, the average price of acetic acid in East China reached 4,619 yuan / ton, an increase of 51 per year.

0%.

The company has a 50-inch ethyl acetate capacity and can produce acetic acid and derivatives 63.

At the beginning of 01, the sales volume was 62.

29 samples, income 24.

9.6 billion yuan, accounting for 17.

4%, gross profit margin 54.

5%, gross profit accounts for 31.

At 1%, the average sales price was about RMB 4,007 / t, an increase of RMB 1,658 / t from the same period last year.

Projects under construction have been put into production one after another.

In May 2018, some of the company’s fertilizer functionalization projects were successfully commissioned on a daily basis.

In October 2018, the company announced that the production facilities of 50 annual / annual budget items have been through all the processes, reaching a stable operation of 70% load, producing superior products, and entering the trial production stage.

In December 2018, the company’s melamine project (Phase II) production line entered trial production with an annual increase of melamine production capacity5.

New projects open up room for growth.On March 19, 2019, the company announced the construction of a refined adipic acid quality improvement project and a new amide and nylon material project.

The planned investment for the quality improvement project of refined adipic acid15.

USD 72 trillion, with a construction period of 24 months. The project is expected to achieve an average annual operating income after the project is put into production.

86 ppm, total profit2.

9.6 billion.

The amide and nylon new material project (30 attachments) plans to invest 49.

USD 800 million, with a construction period of 30 months. The project is expected to achieve an average annual operating income of 56 after the project is completed and put into operation.

1.3 billion, profit maximization4.

4.6 billion.

Profit forecast and investment rating.

Relying on standard syngas and urea, acetic acid, DMF, glucose and other particle size products, the company’s performance will grow steadily.

We expect Hualu Hengsheng 2019?
The EPS in 2021 will be 1.

85, 1.

88, 2.

00 yuan, according to 2019 EPS and 10-13 times PE, corresponding to a reasonable value range of 18.

50-24.

05 yuan, maintaining the “long-term market” investment rating.

Risk Warning: Coal prices have risen sharply; product prices have fallen sharply.