Binhua Shares (601678): Product prices fall, company expects net profit attributable to mothers to decrease by 34% in 2019

Binhua Shares (601678): Product prices fall, company expects net profit attributable to mothers to decrease by 34% in 2019

The company released a report on 2019 results.

In 2019, the company expects to achieve a total operating income of 61.

61 ppm, a decrease of 8 per year.

74%; net profit attributable to mothers4.

65 ppm, a decrease of 33 per year.


Among them, in the fourth quarter of 2019, the company is expected to return to its mother’s net profit.

20 ppm, an increase of ten years.

92 times.

Product spreads narrowed and the company’s profitability was broken down.

The improvement of the company’s profit is mainly due to the decline in the company’s caustic soda and epoxy resin prices, but the decline in the price of raw materials has led to a decline in the product’s gross profit margin.

According to winddata, the average price of caustic soda in East China in 2019 was 3288 yuan / ton, which had dropped by 24.

9%, while the average price of raw salt was 214 yuan / ton, an increase of 11 from 2018.

7%; the average price of propylene oxide was 10,125 yuan / ton, down by 16 a year.

2%, ethylene oxide-0.

The 87 * USD spread is expected to be 4627 yuan / ton, twice every ten years.


Affected by caustic soda, the price of epoxy resin decreased, the spread narrowed, and the company’s profitability also improved.

The profitability of epichlorohydrin in the fourth quarter of 2019 improved compared with the third quarter.

According to the semi-annual report for 2019, the company’s epichlorohydrin plant was successfully driven once. On July 3rd, it replaced qualified products and terminated the end of July. It gradually sold 2927 tons of recycled chlorine to achieve a gross profit of 2513 million, and calculated a gross profit per ton of 8,500More than yuan.

The main raw material of epichlorohydrin is propylene. In the fourth quarter of 2019, the average price of epichlorohydrin in Shandong was 14011 yuan / ton, which was 2 as compared with the previous month.

3%, but at the same time the three-year price fell by 7.


We believe 武汉夜生活网 that the company’s epichlorohydrin products still achieved better profits in the fourth quarter of 2019, and it is also one of the main factors for the company’s return to net profit.

New projects in 2020 are still worth looking forward to.

In 2020, we expect that the company’s electronic grade hydrofluoric acid, lithium hexafluorophosphate, and epichlorohydrin products are expected to contribute incremental performance.

In addition, we expect the company’s pentafluorotoluene conversion to difluoroformaldehyde and co-production of hydrochloric acid technical transformation projects are also expected to be put into production within the year.

According to the company’s original forecast, the average annual sales revenue is expected to be about 1 after the project is completed.

800 million, with an average annual 北京夜生活网 net profit of about 18 million.

The application for the issuance of convertible bonds was approved by the CSRC to build a C3 / C4 comprehensive utilization project.

The company intends to raise no more than US $ 2.4 billion in convertible bonds for the first phase of a C3 / C4 comprehensive utilization project with a total investment of 63.

US $ 3.4 billion, mainly including 60-inch plug-in dehydrogenation (PDH) projects and 80-butane butane replacement projects, which are important alternatives for the company’s further development and stable production.

The company expects that the construction period of the first-phase project will be 2 years, and the average annual net profit will be realized in normal years after completion of production.

7.2 billion.

On December 14, 2019, the company announced that the application for convertible bonds was approved by the CSRC.

Profit forecast and investment rating.

What do we expect from Binhua shares 2019?
In 2021, the EPS will be 0.
29, 0.
39, 0.

48 yuan, we think that the current company is located in the bottom of the industry boom, it is more suitable to use the PB estimation method, according to 2019 BPS 4.

03 yuan and 1.


50 times PB, corresponding to a reasonable value range 5.


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

Risk warning: product prices fall, project construction is less than expected, etc.

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