Taihua New Materials (603055) 2019 First Quarter Report Comment: The industry is about to enter the peak season, and the upward trend is clear.
Investment highlights: Event: The company released the first quarter of 2019 report, and the company achieved operating income in the first quarter of 20195.
52 ppm, a decrease of 9 per year.
43%, the net profit attributable to shareholders of the parent company was 5,441 million, and fell by 30 in the future.
The industry boom is at the bottom, and nylon filament prices have begun to repair.
Since the fourth quarter of last year, the textile and apparel industry has entered a cold winter, and the price of nylon filament has also continued to weaken.
The prices of nylon filament POY, FDY and DTY dropped from 22436 yuan / ton, 25413 yuan / ton, 25275 yuan / ton at the beginning of the fourth quarter of last year to 17,241 yuan / ton, 20655 yuan / ton and 20218 yuan / ton before the Spring Festival in January this year.Ton, the declines were 23%, 19% and 20%.
After the Spring Festival in March, although the price of nylon filament has increased and rebounded, it is still at the current level of 17,816 yuan / ton, 21229 yuan / ton, and 20724 yuan / ton, which also caused the company’s first quarter revenue and profit to decline.Amplitude.
Normally, the prosperity of the textile and apparel industry will gradually recover from the second quarter, and the company’s 杭州桑拿网 performance in the second quarter of the previous year will also be slightly better.
2.7 billion and 1.
5.6 billion US dollars, the single-year profit is expected to be the highest.
It is expected that in the second quarter, the company is expected to usher in both volume and price, and its performance will obviously improve from the previous quarter.
The unit price of products has increased steadily, and we have continued to expand our major customers.
From the product unit price point of view, the first quarter of 19 was improved compared to 18 years. The average price of the nylon yarn sold by the company last year was 21900 yuan / ton, and this year it was 24300 yuan / ton. The nylon fabric was 4 last year.
41 yuan / meter, 4 this year.
67 yuan / meter; nylon fabric last year 11.
09 yuan / meter, this year 13.
14 yuan / meter.
At present, the industry price fluctuates steadily, and the overall trend is rising.
In the past 18 years, the company has opened up 13 new customers. At the same time, the cooperation with major customers such as Decathlon and Chaoying has continued to deepen.
The company will continue to explore new customers for 19 years, and its cooperation with children’s clothing brands such as Balabara also achieved a breakthrough.
Invest another 12 carbonized nylon filaments to continue to consolidate the leading level.
In 19 years, the company will usher in the full-scale production of convertible bond investment projects “an annual output of 76 million meters of high-grade nylon grey fabric fabric projects” and IPO investment projects.
By then, the company’s nylon fabric production capacity will be doubled, and the production capacity of high-end grey fabrics will also be greatly improved.
In addition, the company plans to invest another 12 high-end nylon filaments, mainly high-end DTY + ATY filaments.
Affected by the supply of spinning equipment, there will be no additional production capacity for nylon filament in the future.
The company will further increase the support of downstream filaments to high-end grey fabrics and fabrics through the launch of new production capacity, and strengthen the company’s industry leadership.
Profit forecast and investment grade: We expect the company’s operating income for 2019-2021 to be 32.
400 million, 37.
9 ppm and 46.
90,000 yuan, the net profit attributable to shareholders of listed companies is 4, respectively.
7.7 billion, 5.
5.7 billion and 6.
3.7 billion, the previous growth rate was 38.
7% and 14.
2%, the budget returns are 0.
87 yuan, 1.02 yuan and 1.
16 yuan, corresponding to PE is 14 times, 12 times and 10 times.
We are optimistic about the company’s future development and maintain the “strong recommendation” level.
Risk warning: New projects are put into production less than expected; downstream product demand is less than expected.