Hualu Hengsheng (600426): “One head” cost advantage superimposed with “multi-line” flexible production to help stable growth in the medium and long term
Multi-line, flexible production, crowded core competitiveness. The company continues to promote technological upgrading and upgrades. Relying on coal water slurry gasification technology, it continuously enhances the cost advantage of clean coal gasification platforms, so that the average value of all products related to coal gasification platforms is prominent.Profit advantage.
At the same time, the company’s product structure is further enriched, and a diversified business structure helps the company to smooth the company’s profit cycle through product structure adjustment.
The company’s “one-end, multi-line” flexible multi-generation coal gasification platform will further highlight its competitive advantages and become its core competitiveness.
The price of main products fell, and the cost advantage established a margin of safety.
Since the fourth quarter of 2018, the prices of other products, except for urea, have declined to varying degrees. Since 2019, international oil prices have rebounded and downstream demand has gradually recovered. The prices of acetic acid, adipic acid, DMF, and n-butanol have been rising to varying degrees.
The company’s cost advantage brought by the “one-end, multi-line” flexible production model has established a wide margin of safety for each product.
Urea’s high prosperity continued, leading positions in the DMF industry, tight balance between acetic acid supply and demand, butanol and octanol switchable devices, and other aspects to ensure the company’s stable performance.
The 50-ton / year plasma project of the coal-based calcium sulfate escort performance increase company has been put into production in October 2018. At present, the load has reached 90% stable operation and the quality has reached polyester grade.
With the rapid development of the downstream polyester industry, the demand growth in Bulgaria has not decreased, and it is difficult to reverse it in the short term since imports.
The company has many years of experience and the cost advantages brought by the coal gasification platform, which can fully benefit from the market space of import substitution and bring incremental performance to the company.
The old and new kinetic energy conversion relays have long-term growth, and the second phase of fair incentives has landed to show development confidence.
The company’s park has passed the certification of Shandong Province, and the 150-ton-per-year green chemical new material project has been selected as the first batch of high-end preferred chemical projects in Shandong Province for the conversion of old and new kinetic energy. It has broad long-term development space and strong new kinetic energy.
At the same time, the second phase of equity incentive rewards was completed, binding on the core personnel’s interests to show confidence in the company’s long-term development.
Investment 四川耍耍网 recommendations We expect the company to return to its parent net profit for 2019-2021, respectively.
40,000 yuan, corresponding to EPS 1.
93 yuan, PE10.
The cost advantage under the industry downturn guarantees that the company still has excess income, while taking into account that the poly-generation platform company can appropriately avoid changes in the profit cycle. The company’s worst cycle in the period of 14-16 has only an average of about 8.7 billion in revenue, 19% gross profit margin, 8.
Net profit of 700 million yuan. Under the industry’s average economic cycle, taking into account the performance increase brought by the company’s new production projects, the current value is clearly underestimated, which means that the moat is deep, optimistic about the company’s long-term development space, and maintain a “buy” rating.