Zhejiang Longsheng (600352): Average price of dyes and intermediates grows, Q2 gross profit hits record high
The company released the semi-annual report for 2019, and the performance was in line with expectations:武汉夜生活网 the first half of 2019 achieved operating income of 96.
5 billion (+5.
3%), to achieve net profit attributable to mother 25.
300 million (+36.
2%), net of non-attributed net profit 20.
5 billion (+13.
1%), the primary goal of performance growth is: Although the relocation of the retired factory site throughput and other arrangements have caused the dye and intermediate production and sales to be extended, but the average price of core products of dyes and intermediates have increased.
Among them, the net profit attributable to mothers / net profit attributable to non-mothers was 12 in each quarter of 19Q2.
0 billion, an increase of 0 from the previous month.
6% / 16.
4%; Q2 comprehensive gross profit margin increased by 5.
4 pct to 49.
6%, mainly because the average price of dyes and intermediates has 成都桑拿网 increased compared to Q1.
The company’s average dye price rose sharply in the second quarter.
19H1 company’s dyes segment achieved revenue 53.
600 million (+4.
6%), affected by the relocation of the Dao relief plant, etc., the production and sales were 8 respectively.
6 benchmarks (-23.
8%) and 10.
1 anion (-12.
4%), of which 19Q2 dye sales 4.
4 title (ring than -23.
In addition, the Xiangshui incident also promoted the overall rise in dye prices, with the average price of 19H1 products excluding tax5.
30,000 / ton (+19.
4%), of which 5 in the second quarter.
80,000 / ton (+19 from the previous month.
At present, due to the weak demand in the off-season to supplement the trade war sentiment, dye prices have fallen high, according to Zhuochuang Information, as of 2019.
16. Scattered black with tax average price 3.
750,000 / ton (early May high 16.
However, in general, in the context of domestic environmental protection and safety improvement, the concentration of the dye industry has gradually increased, and there is limited room for price drops. The company, as a domestic leader, maintains high profitability.
Intermediate business has become an important part of the company’s profitability.
19H1 sales of intermediate products 5.
6 benchmarks (-4.
6%), excluding tax average price 4.
30,000 / ton (+36.
3%), of which, 2 sales in 19Q2.
8 parentheses (+0 from ring.
4%), excluding tax average price 4.
70,000 / ton (+20 compared with the previous month).
The company’s intermediate business has more than 15 years of drilling and accumulation. Its core products, m-phenylenediamine and resorcinol, have grown into industry leaders.
(1) M-phenylenediamine: The Xiangshui incident caused Tianjiayi Chemical, the second largest m-phenylenediamine enterprise in China (capacity 1.
(Announced 7) Exit, company 6.
5 Emissions (including self-use) have absolute right to speak; (2) Resorcinol: After the withdrawal of overseas INDSPEC production capacity in 17 years, only global companies and Sumitomo have left. According to wind information, the domestic spot price center has been in effect since 18Stand on the 100,000 / ton.
In the future, with the shortage of m-phenylenediamine and the continued imposition of anti-dumping duties on Japanese and American products, product prices will remain high, and performance will increase.
As a domestic dye and intermediate leading enterprise, the company has built a strong moat through the advantages of scale, technology, environmental protection and safe production, as well as the integration of the industrial chain.
The EPS is expected to be 1 in 19-21.
00 yuan, corresponding to PE of 19-21 is 8 respectively.
3 times, maintaining the “buy level”.
Risk warning: the risk of price fluctuations of dyes or intermediates, downstream demand is less than expected, environmental protection and production safety risks.