Luxi Chemical (000830) Interim Report Comments: Interim Report Performance Meets Expectations Q2 Product Price Sets Bottom, Waiting for Industry Boom

Luxi Chemical (000830) Interim Report Comments: Interim Report Performance Meets Expectations Q2 Product Price Sets Bottom, Waiting for Industry Boom
Investment Highlights: Company Announcement: The company released the 2019 semi-annual report, and the company achieved operating income of 98 in the first half of 2019.610,000 yuan (YOY-7.03%), realizing net profit attributable to mother 7.6.3 billion (YoY-55.63%), and performance was basically in line with expectations.Among them, the Q2 2019 single quarter achieved revenue of 48.9.3 billion (-14% year-on-year.37%, QoQ -1.53%), net profit attributable to mother 4.10,000 yuan (YoY-55.54%, +10.77%). The performance of main products dropped due to lower prices, and the proportion of new chemical materials continued to increase.The reporting company’s rigorous safety, environmental protection and energy-saving management and control, give full play to the role of the smart chemical park platform, dispatch and balance production resources; make full use of the system’s leading project, reduce market risks, and maximize economic benefits.In the first half of the year, part of the company’s nylon 6 second-phase installations, formaldehyde continued construction projects, and cycloalkyl ketone production projects have been put into operation. The polycarbonate project capacity has been fully released, and production and sales have generally increased steadily.Reported that the new chemical and new materials segment achieved operating income of 70.5.4 billion, accounting for 71% of total revenue.5%.Affected by the downturn in the chemical industry, the company’s four new chemical industry materials, basic chemicals, compound fertilizer and urea revenues decreased compared with the same period of the previous year. At the same time, gross profit margins declined and gross profits narrowed.30, 1.54, 0.77, 0.2.8 billion.The company’s gross profit margin for the first half of the year was 21.21%, a decrease of 7.8 units.In the first half of the year, caprolactam, butanol, refrigerant, and nitrate chloride contributed significantly to performance, achieving net profit respectively.39, 0.91, 0.35, 0.6.4 billion. In Q2, the prices of main products bottomed out, and control expenses realized a quarter-on-quarter profit rise.According to our tracking, 32% ion membrane caustic soda, urea, caprolactam, 27.The average prices of 5% hydrogen peroxide, butanol, octanol, and polycarbonate Q2 were 684, 2010, 13105, 1无锡夜网论坛154, 6430, 7350, and 15500 yuan / ton, respectively, which was a -17% change from 19Q1, +6.4%, +1.0%, + 27%, -3.1%, -4.1%, +1.2%; the main raw materials are coal, pure benzene, propylene, and bisphenol A. The chain movement is +3.2%, -4.2%, -3.1%, -5.3%.The price of Q2 products bottomed out, and the single-quarter operating income was the lowest month-on-month, but at the same time the prices of raw materials fell slightly, and the gross profit margin of Q2 sales remained the same as Q1.The Q2 company controlled the expenses to a certain extent. While guaranteeing higher R & D expenditures, the financial expenses and sales expenses decreased month-on-month. Q2 sales, management, R & D and financial expenses totaled 4.9.2 billion, down 0 from the previous month.61 ppm, which has a positive impact on the current performance. 武汉桑拿 Long-term tightening of safety and environmental protection will raise competition barriers in large chemical parks. MTO and PC projects continue to improve the layout of the industrial chain. After years of development, the company has basically realized the transformation from a traditional coal chemical enterprise to a leader in new chemical materials. The integration, intelligentization and intensiveness of the industrial park have led the industry.The company has strictly controlled safety and environmental protection for a long period of time to ensure production safety, and basically achieve zero discharge of wastewater and ultra-low emissions of flue gas treatment. In the context of long-term severe environmental safety supervision and management in the industry, high-quality chemical parks have become an important moat for the company.The company continues to promote the polyol raw material route optimization project (30 tons MTO) and 100 tons polycarbonate project in the park. The above new chemical materials and new coal chemical products will further improve the company’s industrial chain layout, enhance the company’s industry layout, and become a company.New driving force for future performance growth. Profit forecast and investment rating: Due to the staggered changes in the price of the company’s products, the company’s profit forecast for 19-21 is reduced to 14.50, 15.46, 16.4.8 billion (22 before adjustment).01, 24.61, 26.65 ppm), corresponding to 10/9/9 times the PE for 19-21 years. The current profit forecast is based on the price assumptions at the bottom of the industry cycle.”Overweight” rating.