Zhejiang Longsheng (600352) Annual Report 20杭州桑拿网18 Review: Progressive Barriers to Safe Production and Construction
Event: The company released its 2018 annual report and achieved a total of 190 operating income last year.
RMB 760,000 (26 per year.
32%), realizing net profit attributable to mother 41.
110,000 yuan (66 per year.
The company also announced the profit distribution plan for 2018, and plans to use the existing share capital32.
With 5.3 billion shares as the base, a cash dividend of 2 per 10 shares will be distributed to all shareholders.
50 yuan (including tax), a total of 8 dividends.
1.3 billion, the same as last year’s dividend plan.
The fourth quarter performance was slightly inclined on a quarter-on-quarter basis, and the gradual profit hit a record high. Affected by the low season of downstream demand, the average price and sales volume of the company’s dyes in the fourth quarter of 2018 both slightly inclined on a month-on-month basis, but significantly better than the same period in 2017.
Net profit for the four quarters of 20187.
3.3 billion, of which net profit after deduction for the fourth quarter was 6.
28 trillion, mainly due to the company’s non-recurring profit and loss4.
07 trillion have the most government subsidies (a total of 2.
1.3 billion) and investment income (one year).
7.2 billion) was confirmed in the fourth quarter.
A total of 41 was achieved initially.
The net profit of 1.1 billion units reached a record high, and the company’s gross profit margin and net profit reached 45.
43% and 22.
08%, also hit a record high since listing.
The intermediate business has grown steadily, and has paralleled the traditional dye business. The company’s global dye sales in 201824.
19 for the first time, with intermediate sales of 10.
73 average, sales revenue were 111.
0 billion and 36.
400 million, gross profit was 53.
10 ppm and 22.
97 ppm, with an intermediate gross margin of 63.
01%, significantly exceeding 47 in the dye business.
The company’s intermediate products are mainly m-phenylenediamine and resorcinol. It has maintained a better profitability for a long time, expanded its scale and expanded its gross profit from 1 in 2008.
7.1 billion to 22 in 2018.
9.7 billion yuan, with a compound annual growth rate of 30%.
The production safety and environmental protection emission policy will further clean up the industry’s backward production capacity and be affected by a major accident in the Xiangshui Chemical Park, causing the government’s production safety management of local chemical companies to rise again, taking into account the second round of central ecological environmental protection inspection and “Looking back, we expect that the backward production capacity in the dyes and intermediate industries will be further cleared and withdrawn from the market.
The company attaches great importance to safe production and cyclical clean production. For example, in the disperse dye project, through the integration of clean production integrated technology application and transformation projects, the reduction of wastewater solid waste discharge, the solution of expansion of production and replacement, and increase of environmental carrying capacity.
In the intermediate production process, m-phenylenediamine is fully utilized, and the reduced product and resorcinol are used in the stepwise sulfuric acid in the integrated production process, so as to reduce the amount of acid and achieve circular economy.
Investment suggestion: We are optimistic about the company’s development in the fine chemical industry and maintain a “Buy” rating.
We expect net profit attributable to mothers to be 50 in 2019-2021.
7 trillion, a year-on-year growth rate of 23.
4%, diluted EPS = 1.
74 yuan, currently corresponding to the corresponding PE = 12.
Risk warning: the industry’s resumption progress exceeds expectations; dyes and intermediate prices change significantly.