Jiuli Special Material (002318) Interim Report Comments: Gross profit margin increased and profit performance continued to exceed expectations
Event: The company released its semi-annual report for 2019 and achieved revenue of 20.
9.9 billion, an annual increase of 7.
69%; net profit attributable to mother 2.
110,000 yuan, an increase of 59 in ten years.
32%; of which, Q2 achieved revenue of 10.
8.8 billion, an annual increase of 2.
98%, net profit attributable to mother 1.
3.9 billion, an increase of 65 in ten years.
The company also expects that the net profit attributable to listed shareholders from July to September will change from the same period last year9.
24% to 61.
The performance growth exceeded expectations, and gross margin improved significantly.
At the report level, the petrochemical industry continued to recover, the company continued to have a good investment trend downstream, product sales and market share increased, and this business income11.
4.4 billion, ten years +10.
15%, accounting for 54% of revenue.
In terms of product classification, welded pipe revenue increased significantly, reaching 27.
69%, a brief overview of seamless pipe revenue5.
73%,都市夜网 the budget, the sales volume and price of pipe fittings went up, and realized the income1.
68 ppm, +43 for ten years.
Through continuous technological transformation, the company’s yield rate has been significantly improved and the cost reduction effect has been significant. The product’s comprehensive gross profit margin is 26.
31%, ten years +3.
86pct, significantly increase profits.
The report totals the company’s period expenses13.
49% (decade +0.
10%), the company’s expenses maintained a reasonable scale, during which the expenses were well controlled, the company continued to promote the transformation and upgrading of the company’s product structure, and the R & D investment was zero.
8.3 billion, +21 a year.
The company has actively deployed in the fields of nuclear power, semiconductors, pharmaceuticals and other precision tubes and aerospace materials. We are optimistic about the company’s research and development commitment to the potential of continuous conversion into products and performance.
Benefit from the investment and construction of oil and gas pipeline networks.
The center of crude oil prices has been raised to promote the recovery of oil and gas investment. The external dependence of crude oil and natural gas is relatively high. Domestic energy security requires the expansion of exploration and development and the construction of oil and gas infrastructure.
In addition, the establishment of the national pipeline network company, that is, pipeline network construction and market-oriented reforms, will accelerate the construction of 5,000 kilometers of oil pipelines and 40,000 kilometers of new natural gas trunks and supporting pipelines.Key technologies and key equipment are planned to achieve 100% domestic production of pipes.
The company has the largest market share in high-end industrial high-end stainless steel pipes, and orders are expected to increase further.
Nuclear power is restarted, and the heat exchanger tubes of the evaporator are expected to be heavy.
Recently, the Ministry of Ecology and Environment released the public announcement of the first stage project of CGN Guangdong Taipingling Nuclear Power Plant, Fujian Zhangzhou Nuclear Power Plant’s Unit 1 and 2 Environmental Impact Assessment Report, which is expected to start in June this year.
The company is one of the domestic duopoly of steam generator heat exchange tubes and has won the bid for Zhangzhou Unit 1.
Based on 200 tons of evaporator heat exchanger tubes per million kilowatt units and a unit price of 800,000 U.S.A., the U-shaped tube market has an annual capacity of more than 1 billion, and the company produces nuclear 1, 2, and 3 seamless tubes and nuclear 2, 3Welded pipe products have fully covered the third-generation nuclear power pipeline pipe products. The fourth-generation reactor and the fifth-generation reactor also have accumulated and supplied technology. As a domestic nuclear-grade steel pipe industry leader, its technical advantages and obvious industry competition barriers are obvious.The restart of domestic nuclear power construction and the promotion of the “going out” strategy have huge potential for the company’s nuclear power business development. Investment Advice.
The company is a leading stainless steel pipe company, and its R & D is constantly increasing. High-value-added, high-tech stainless steel pipe products are the focus of the company’s product structure adjustment. Oil and gas investment is warming up and nuclear power is restarting. The company’s performance is expected to continue to grow rapidly.
Increase the profit forecast. It is expected that the company’s EPS for 2019-2021 will be 0.
56 and 0.
63, corresponding to the current sustainable PE of 15, 13, 12 times, maintain “Buy” rating.
Risk warning: The macro economy continues to decline, and the restart of nuclear power is weaker than expected.