Xin Fengming (603225) 2019 Interim Report Review: PTA Production Puts Immediately to Drive Company Performance Out of Low

Xin Fengming (603225) 2019 Interim Report Review: PTA Production Puts Immediately to Drive Company Performance Out of Low

Event On August 22, 2019, the company issued an interim report, and the company achieved operating income of 163 in 2019H1.

3 ppm, an increase of 13 in ten years.

3%; net profit attributable to parent company5.

880,000 yuan, down 27 every year.

6%.

Among them, 2019Q2 company 西安耍耍网 achieved operating income of 86.

$ 700 million, unchanged from the same period last year; net profit attributable to the parent company.

21 trillion, down 41 a year.

5%.

  A brief comment on the downturn in the polyester industry, the company’s filament price supplemented by volume.

Affected by the rise in PTA prices in the first half of 2019 and the Sino-U.S. Trade war, the polyester filament industry is in a downturn, and prices and spreads have also decreased.

The company achieved a gross profit by increasing the volume of polyester filament business13.

0 billion, a decline of only 12 a year.

7%.

2019H1 company’s polyester filament production is 182.

In June, it is +29 per year.

9%, sales 185.

8 Initially, at least +34.

3%.

Among them, the output of POY, DTY and FDY was 132 respectively.

1 for the first time, 14.

5 is the lowest, 36 is the lowest, and sales are 135.

5 for the first time, 14.

3 pieces, 36 pieces.

According to the company’s disclosed operating data, the average prices of POY, DTY, and FDY in the first half of 2019 were 7,445 yuan / ton, 9,367 yuan / ton, and 8,186 yuan / ton, each time -7.

8%, -7.

0%, -6.

7%; the price difference of POY, DTY, FDY is 1273 yuan / ton, 3196 yuan / ton, 2015 yuan / ton, can be -380 yuan / ton, -465 yuan / ton, -354 yuan / ton.

Due to the influence of inventory, the actual spread of the company has narrowed relative to the market spread.

2019H1 company selling expenses 0.

650,000 yuan, ten years +0.

2 ppm, mainly due to the increase in freight insurance premiums and staff budgets; financial expenses1.

45 trillion, ten years +0.

US $ 4.4 billion, mainly due to increased interest on bank borrowings and convertible bond indices; management and research and development expenses4.

76 trillion, +1 a year.

62 ppm was mainly due to increased distribution of incentive costs, employee compensation, depreciation, and R & D of new products and processes.

  Dushan Energy 220 achieved PTA production for the first time, and its profitability efforts increased significantly in the second half of the year.

The investment in the first phase of the PTA project is 40 million, which has an advantage of 200-300 yuan / ton in proportion to the cost of the industry; the newly-produced PTA device has lower material consumption and can reduce the advantages compared to the old device.In September 2019, the company’s PTA project will be officially put into production, solving the conflict currently subject to the PTA transition.

Dushan Energy’s second-phase 220-ton green and intelligent PTA project has begun construction, with a total investment of 3.2 billion yuan, 10% of the current project progress. It is expected to be officially put into operation in the third quarter of 2020.

With the commissioning of PTA production capacity, the company will gradually realize self-sufficiency of raw materials, the industrial chain will be extended upstream, and the company’s profitability, competition and anti-risk capabilities will be greatly enhanced.

In addition to the PTA project, in the second half of 2019, Sinopec Technology 26 short-term technical transformation project, Zhong Yue Chemical Fiber Phase I 28 plug-in, Phase II 28 plug-in filament production capacity to promote production, the current progress is 67%, 78%, 49%.

In 2020, the company will start to produce 100-length filaments, and Zhongyi Chemical Fiber 60 will be inserted into the project at a current rate of 23%.

It is expected that the company’s filament production capacity will reach 540 cases by 2020.

With the commissioning of private large-scale refining and chemical PX and other projects, the profit distribution of the polyester industry chain has been reshaped, and the transfer to the PTA-polyester end has been realized, and the company’s filament business profitability will be further improved.

  The company’s core competitiveness is outstanding, and filament profitability is ahead of its peers.

The company recognizes management innovation, and the waste silk rate index is ahead of the industry average, and the expected level has reached some leading levels.

Production technology continued to innovate, and successfully developed separate products such as hygroscopic fibers, high-grade silk fibers, environmentally friendly anti-wrinkle fibers, and ultra-flexible fibers.

Insist on low inventory operation and reasonably grasp the market rhythm. Raw materials usually maintain consumption within 10 days, and inventory products maintain sales volume for 5-7 days.

The advantages of equipment backwardness and cost management are obvious, which greatly improves production efficiency. The company has 14 sets of melt direct spinning production lines, of which 12 sets of melt direct spinning production lines have been put into operation after 2010. New imported equipment is in production efficiency and production stability., Material consumption value and other aspects have obvious advantages in copyright.

The company reached the “black light workshop” standard through machine substitution. From 2014 to 2018, the company’s production capacity increased from 170 to 370 euros, the number of employees increased by only 42%, labor costs continued to decrease, and the production efficiency 杭州夜网 industry led.

  Profit forecast and estimation: It is estimated that the company’s net profit attributable to its mother in 2019, 2020 and 2021 will be 15 respectively.

300 million, 21.

8 ppm and 29.

200 million, EPS 1.

28 yuan, 1.

83 yuan and 2.

45 yuan, PE 9.

0X, 6.

3 times and 4.

7x, maintain “Buy” rating.

  Risk reminder: Macroeconomic growth rate, project put into production is less than expected.