China Chemical (601117) 2019 Interim Report Review: Gross margin improvement performance increased by 48% to build nylon 66 industrial base
Event: The company released its 2019 Interim Report and achieved operating income of 385 in the first half of the year.
1.7 billion, +13 a year.
26%; net profit attributable to mother 16.
02 ten percent, +47.
Among them, Q2 achieved operating income of 207 in a single quarter.
98 ppm, +8 for ten years.
37%; net profit attributable to mother 9.
8 billion yuan, +43 per year.
Main points: 1.
Increasing revenue and increasing profits, the industry with a good performance and the investment growth rate turned positive: From 2015 to 2017, due to the overcapacity of the domestic chemical industry and the adjustment of the industrial structure, the industry’s fixed asset investment negatively increased.
With the supply-side reforms since 2016 and the global economic resonance in 2017, the profitability of the chemical industry has greatly improved, and profits have continued to grow rapidly to the third quarter of 2018.
The investment of chemical companies is expected to increase. In 2018, the domestic chemical engineering sector has a high degree of prosperity, and investment has gradually increased.
In the first half of 2019, the Croatian oil and chemical industry achieved operating income6.
1 trillion, an annual increase of 2.
2%; profit totaled 359.6 billion yuan, a year-on-year decrease of 18.
Although facing certain pressure, the investment of leading enterprises is expected to remain unchanged, and the capital expenditure of three barrels of oil is expanding.
Increase in gross profit margin: In 2019H1, the company’s sales gross profit margin increased by 0.
36 single to 12.
Q2 single quarter is 12.
Steady growth in operating income: In July 2019, the company achieved operating income of 66.
18 trillion, +36 a year.
62%; Cumulative operating income from January to July was 454.
880,000 yuan, ten years +16.
19%, continued growth.
In 2019, the company plans to complete operating income of 9.35 million yuan, +14 in ten years.
8%, 48 by the end of July.
New year bill: As of the end of July 2019, the company gradually increased the amount of newly signed contracts by 950.
43 ppm, ten years +4.
99%; of which the domestic contract amount is 630.74 trillion, overseas contract value of 319.
6.9 billion yuan.
In 2019, the company plans to sign 1616 trillion new contracts, and has completed 58 by the end of July.
We estimate that the company currently has orders above 2300 ppm.
Strong technical innovation ability. In addition to the engineering construction business, the company has alternative technology research and development capabilities. In the traditional chemical industry, new coal chemical industry, petrochemical industry, new chemical materials and other fields, the company masters it through independent innovation and collaborative innovation of industry, university and researchAnd has a series of patented process technology and proprietary engineering technology.
At the same time, the company also reset the “focus on the main industry, take a professional, diversified, international” development path.
Tianchen Company, a wholly-owned subsidiary of the company, has an independent research and development of “Synthesis of Adiponitrile by Butadiene Direct Hydrocyanation”.
Tianchen Company and partners established Tianchen Qixiang New Material Co., Ltd. to invest in the construction of nylon 66 new material project.
Equity: The registered capital of the project company is 27 trillion yuan, of which Tianchen’s equity ratio is 34%, Sinochem Investment’s equity ratio is 41%, Qixiang Tengda’s equity ratio is 10%, and the employee incentive platform’s equity ratio is 15%.
Construction content: Plan to build a 100mm nylon 66 new material industrial base, the first phase of which mainly includes the construction of a 30-ton / year butyl nitrile co-production aluminum hydroxide plant, a 5-ton / year sodium cyanide plant, and 9 anions./ Hydrogen fluoride device, 20 precipitates / year adiene device, 20 precipitates / year hydrogenation device and 20 precipitates / year nylon 66 salt and slicing device, as well as supporting public works and auxiliary production facilities.
We expect the project to be profitable.
The national adiponier ‘s dependence on foreign countries is 100%, and the “adipnier-hexamethylenediamine-nylon 66” industrial chain has a serious mismatch.
Adiponitrile is mainly the upstream raw material of nylon 66. In 2018, the global adiponitrile production capacity was less than 175 tons. Only 4 companies produced it. The oligopoly is highly monopolized (CR1 = 60%, CR2 = 83%, CR3 = 98%), and the technical blockade is serious, Developing countries fully bear imports, imports in 201829.
3 positive (+7.
The “adiponitrile-hexamethylenediamine-nylon 66” industry chain faces an awkward reality. The nylon 66 market is in China. In 2018, the consumption was 52 pounds (+ 9%), 27 were imported, and the external dependence 重庆耍耍网 was 36%.Two Neal “Card Neck”.
The profit distribution of the industrial chain is in the hands of foreign upstream companies.In 2018, it benefited from many sudden parking incidents.
5 times), nylon 66 chips (1 times) were once quoted over 8 million / ton, 4 million / ton, a huge increase.
The profit forecast and investment rating predict that the company’s net profit attributable to its parent in 2019-2021 will be 26.
02 billion, 29.
45 billion, 32.
9.2 billion yuan, corresponding to 0 EPS.
53 yuan, 0.
60 yuan, 0.
67 yuan, PE is 10.
Considering that the company is one of the leaders in the field of engineering construction, its performance has continued to improve. It is estimated that it is low and defensive. It will build a nylon 66 industrial base and maintain “buy”.
Risk reminders: Macroeconomic growth is lower than expected, the engineering market recovery is lower than expected, and physical project operation risks.