Binhua Co. (601678): First-half performance meets expectations Multi-project commissioning leads future development

Binhua Co. (601678): First-half performance meets expectations Multi-project commissioning leads future development

Performance summary: The company achieved operating income in the first half of 2019.

900 million, down 8 every year.

5%; net profit attributable to mother 2.

500 million, down 45 a year.


The breakthrough in performance was mainly due to the decline in prices of main products.

The company sold propylene oxide in the first half of the year.

3 for the first time, growing by 0 each year.

4 nominal, but the average unit price is 8518.

2 yuan / ton, down 16 before.

8%; sales of caustic soda in the first half of the year 36.

2 Initially, the annual growth rate is 3 indicators, and the average unit price is 2589.

3 yuan / ton, down 24 before.

4%, so the company ‘s first half of the year ‘s performance has gradually declined due to the replacement of the unit price of two major products, epoxy resin and caustic soda.

At the same time, the prices of formaldehyde and coal, the main raw materials, have only dropped by 8 each year.

8% and 4.

0%, while the price of raw salt still increases by 1 every year.

0%, so the company ‘s gross profit margin fell by 5 in the first half of the year.

4 up to 24.


We believe that due to the gradual deterioration of the industry and the impact of downstream demand and weak downstream demand, the price of interrupted resets and caustic soda products changed significantly in the first half of the year, but the prices have basically stabilized recently, but sometimes even rebounded significantly, so we judge the company in the second half of the yearThe prices of main products will remain stable every year and will increase from the first half of the month.

The electronic-grade hydrofluoric acid project is put into production, and it is expected to accelerate domestic substitution in the future.

The report summarizes that the company’s electronic-grade hydrofluoric acid plant has been successfully started, and its production and operation have remained generally stable.

The recent Japan-South Korea trade dispute has intensified, and Japan has restricted exports of South Korean electronic-grade hydrogen fluoride products.

According to the investigation results of the Korean Trade Association, South Korea ‘s dependence on Japan on high-purity hydrogen fluoride is 93.

7%. After removing the white list, the above key materials imported by South Korea need to be reviewed within 3 months of the calendar. At that time, Samsung, Hynix and other replacement inventory losses will face the risk of supply interruption.

We believe that the Japanese sanctions provided unprecedented opportunities for Chinese companies to enter the Korean semiconductor supply chain. The company’s high-purity electronic grade hydrofluoric acid is expected to accelerate the realization of 杭州桑拿网 import substitution and export to foreign semiconductor manufacturers.

The epichlorohydrin and carbon three carbon four comprehensive utilization project started a new chapter in the development of benization.

Company 7.

5 The formaldehyde injection chloroacetic acid device was successfully driven once. On July 3rd, qualified products were replenished. At the end of July, the circulating chlorine was gradually replaced to replace 2927 tons, and the sales gross profit was 25.13 million yuan. Based on the average market price of 16600 yuan / ton in July,The interest rate is above 55%, which will become an important performance growth point for the company in the future.

At the same time, the first phase of the “C3C4 Comprehensive Utilization Project” of the fundraising project announced by the company in the first half 淡水桑拿网 of the year mainly consisted of “60-year injection and dehydrogenation unit” and “80-year replacement butane replacement unit”.

The main construction content of the “carbon three carbon four comprehensive utilization project” includes “60 tons of barium sulfate per year replacement dehydrogenation unit”, “80-inch per year butane esterification unit”, “synthetic ammonia unit”, “polyvinylidene fluoride”The five main units of the complex “unit” and “propylene oxide / tert-butanol unit”.

The first-stage construction unit mainly produces butane from the formaldehyde dehydrogenation (PDH) unit and isobutane from the production site of the butane alternation unit as raw materials for the second-stage co-oxidation ethylene oxide / tert-butanol unit.

After years of development, propylene oxide is one of the company’s most important products.

The company currently uses the chlorohydrin method to produce propylene oxide. The process technology is relatively mature and the production process is relatively safe, but it consumes a large amount and will produce wastewater and waste residues containing chlorine radicals and suspended matter. Therefore, it requires a higher level of environmental protection for the company.
The co-oxidation method uses a co-oxidation reaction of isobutane (or ethylbenzene) and naphthalene to generate propylene oxide, and co-produces tert-butanol (or styrene).

The co-oxidation method overcomes the shortcomings of large water consumption and pollution of the chlorohydrin method, and has the advantages of low product cost and less environmental pollution. At the same time, the by-product tert-butanol can continue to extend the industrial chain downward and achieve good economic benefits.

The company expects to achieve an average annual net profit of 6 after the first phase of the project is put into production.With 700 million yuan, we believe that the comprehensive utilization of carbon three carbon four projects will start a new chapter in the development of benization.

The development of hydrogen energy projects has shifted into the fast lane.

The current main business of the subsidiary Hydrogen Energy Company is to purify the industrial air of the company’s ion membrane caustic soda plant to meet the hydrogen fuel cell car hydrogen fuel quality standards and provide qualified power particles for hydrogen fuel cell car hydrogenation stations.

At present, the first phase of the device has officially entered the trial operation phase on May 8, 2019, and the device is operating normally. In addition to the gradual reduction of moisture produced in the gas phase, other volume trace component indicators have reached the “Proton Exchange Membrane Fuel Cell Vehicle Use”Dye Formaldehyde standard.

The capital increase is based on the strategic needs of the company’s new energy industry development layout. The capital increase is mainly used for hydrogen energy companies’ investment and industry mergers and acquisitions, which will help hydrogen energy companies to acquire and integrate key technologies and excellent resources in the new energy industry, and expand production scale., Extend the industrial chain, increase market share, and promote the company’s transformation and upgrading.

Earnings forecasts and investment advice.

We expect the EPS for 2019-2021 to be 0.

34 yuan, 0.

41 yuan, 0.

47 yuan, corresponding to PE is 18X, 14X and 13X, maintaining the “overweight” level.

Risk reminders: the risk of price increases due to risk factors; the risk of severe deterioration in the price of caustic soda; the risk of new project construction progress being less than expected.