Dongfang Shenghong (000301) Annual Report 2018 Review: Product differentiation guarantees profitability and strives to build industry chain integration

Event: The company released its 2018 annual report and achieved a total of 184 operating income throughout the year.

400,000 yuan (13 per year).

13%), realizing net profit attributable to mother 四川耍耍网 8.

470,000 yuan (ten years -40.

75%).

The company has a total share capital of 40 in 2018.

2.9 billion shares are the base number, and a cash dividend of 1 is distributed for every 10 shares.

00 yuan (including tax), a total of 4 dividends.

30,000 yuan.

The company also announced the non-public issuance of US $ 3 billion in green corporate bonds for the construction of the “Shenghong Refining and Chemical Integration Project”.

  The industry was generally depressed in the fourth quarter, and the company still maintained a high profit. The company’s single-quarter net profit in 2018 was 3.

35/3.

54 / -0.

39/1.

96 ppm, of which goodwill was impaired in the third quarter due to reverse acquisition of assets5.

99 ppm. In the fourth quarter, the company still maintained better profitability in the face of general industry overshoot, exceeding the industry average.

Without considering factors such as the impairment of goodwill in the third quarter, the subsidiary Guowang Hi-Tech will gradually realize its net profit attributable to its mother.

5.6 billion US dollars, exceeding the performance promise of last year’s listing and reorganization (2018-2020, the net deduction of non-net profit will be 12 respectively.

44/26.

11/40.

5.8 billion).

  The downstream demand has decreased significantly, and the company’s differentiated products have a more significant advantage. The downstream textile industry of chemical fiber has been significantly lower since the second half of last year. The output of cloth and yarn has continued to decrease, and it has gradually decreased by -5 in the first two months of this year.

2% and -1.

2%.

According to the data of China Fiber Net, the output of polyester filaments gradually reached 490 in the first two months of 2019.

4 initially, at least 3.

05%, the growth rate increased significantly.

In the downturn of the filament industry, the profitability of DTY yarns has slightly stood out, and the unit price difference and gross profit have clearly exceeded POY yarns.

The company has 160-inch polyester polyester filament production capacity, of which the DTY yarn production capacity is expected to reach 100 inches in 2019, and it can still maintain better profitability when the industry boom can be reduced.

  Entered the upstream refining and chemical project, and long-term layout of the industrial chain integration company acquired the group’s “Shenghong 1600 ton / year refining and chemical integration project” in March, formally shifting to “crude refining-PX / MEG-PTA-polyester-chemical fiber”The transformation of the new high-end textile industry chain.

According to the project feasibility study report disclosed by the company, the project includes 1,600 tons / year of refining, 280 tons / year of paraxylene (PX), 110 tons / year of ethylene, and supporting projects.

According to the company’s feasibility study report (calculated according to the crude oil price system of $ 50 / barrel), the project is expected to achieve sales revenue of 72.2 billion yuan and a net profit of 7.6 billion yuan.

  Investment suggestion: We are optimistic about the company’s development in the fine chemical industry and maintain a “Buy” rating.

  We estimate the company’s net profit attributable to its mothers in 19-21.

27/19.

59/21.

84 trillion, corresponding to 0 EPS.

43/0.49/0.

54 yuan, corresponding to the current total PE is 14.

2/12.

5/11.

2 times.

  Risk warning: the downstream demand is sluggish, the spread of polyester filament shrinks, and the price of raw materials rises sharply.