Xingfa Group (600141): Significant improvement in performance compared to the previous quarter
The company achieved revenue of 144 in the first three quarters of 2019.
470,000 yuan (+1 year-on-year.
01%); net profit attributable to mother 3.
01 ‰ (yoy-23.
08%); net operating cash inflows 12.
290,000 yuan (+20 compared with the same period last year).
Among them, Q3 single-quarter net profit1.
7.7 billion (year-on-year 14.
60% quarterly +128.
23%), a significant improvement from the previous quarter.
At the same time, the company announced that the associated company Hubei Xingli Electronic Materials will re-cooperate with Guizhou Phosphate Group and convert it into capital increase and share expansion. After completion, the company, the pioneer, Guizhou Phosphate’s shareholding ratio will be 30%, 40%, and 30%, respectively.
The supply-side reform of the yellow phosphorus market promoted the rebound of the industrial chain, and Q3’s profitability improved month-on-month: the company’s first three quarters produced 288 tons of phosphate rock (-2% year-on-year), with an average price of 269 yuan / ton (+ 7% year-on-year).The single-quarter output was 115, which was basically the same as the previous quarter.
Yellow phosphorus production 7.
2 is expected (yoy + 4%), where Q3 is 2.
1 Initially, it is reduced by 0 every year.
Prior to 4, due to the company’s high yellow phosphorus self-use rate, the export in the first three quarters was only 1, the corresponding glyphosate output increased by 50%, and the average selling price of yellow phosphorus in Q3 was 1.
65 million / ton (+ 26% YoY, qoq + 15%).
In Q3, due to the environmental protection and improvement of the yellow phosphorus industry in the southwestern region, the price of products rose sharply, which is conducive to the rebound of the phosphorus chemical industry.
The company’s Q3 quarter gross margin was 15.
49%, an increase of 3 from the previous quarter.
32pct, the cost rate during the period is 9.
91%, an increase of 1 from the previous quarter.
25pct, of which selling expenses and financial expenses increased by 0 respectively.
At the same time, the company continued to recognize 0 impairment loss in Q3.
18 trillion, and 0 non-operating expenses.
The profitability of high-quality phosphorus chemical products improved, and the company’s Q3 net profit margin was 3.
84%, quarterly ROE2.
28%, a significant improvement from the previous quarter.
The phosphorous chemical industry chain is expected to grow for a long time. The company’s industrial chain is integrated and the layout is becoming more and more 深圳桑拿网 perfect: the environmental protection of the yellow phosphorous industry has effectively promoted the rebound of the Q3 phosphorous chemical market.
In the long run, the problem of phosphogypsum treatment, the continuous improvement of the strategic resource attributes of phosphate rock, and the continuous high standards of environmental protection and safe production, the prosperity of the phosphorus chemical industry chain has promoted continuous improvement.
The Houping Phosphate Mining License obtained by the company in March this year, the phosphate ore production capacity has been further increased to 760 tons / year, and the upstream resource guarantee capacity has been further increased.
In terms of glyphosate, the company has completed the safety, energy saving and environmental protection transformation of the glyphosate unit in Taisheng Yichang Base, the acquisition and integration of Inner Mongolia Tenglong, and technical improvement and efficiency improvement projects.
The company’s production capacity of glyphosate with 18 acetic acid ranks first in China, and it has obvious advantages in supporting raw materials such as 10 potassium sulfate and yellow phosphorus.
In the silicone business, the company has completed the acquisition of minority shareholders’ equity of Xingrui Silicon Materials, a subsidiary of the company. The silicone technology renovation project will contribute 16 new monomers today and tomorrow. At the same time, 10 special silicone rubber and silicone oil projects are also underway.Orderly construction.
The company’s integrated phosphate ore-electricity-phosphorus chemical industry layout has been gradually improved, and the industry leaders have continued to consolidate.
The development of Xingli Electronic Materials is expected to accelerate, and the electronic chemical business is worth looking forward to: Xingli Electronic Materials will release the new partner Guizhou Phosphate Group by way of capital increase, share expansion and old share transfer, of which the company will transfer 8 million yuan to Guizhou Phosphate GroupThe subscribed capital contribution, at the same time, Guizhou Phosphate Group and Pioneer will increase the registered capital of Xingli Company by 82 million and 18 million yuan.
After the completion of the transaction, the registered capital of Xingli will increase to 300 million U.S. dollars, and the capital strength will be significantly improved. The shareholding ratios of the company, the pioneer, and Guizhou Phosphate will be 30%, 40%, and 30%, respectively.
Xingli Company plans to produce and operate a variety of electronic chemicals, and in August 2019, it will launch a 3 insert / year electronic grade hydrofluoric acid phase I1.
5 Preliminary / annual project construction is expected to be completed in the third quarter of 2020.
Forerrunner will provide the world’s advanced production technology of purified 10ppt (G5) electronic grade hydrofluoric acid for this project.
As a key material in the field of cleaning and etching of integrated circuits, the import of high-purity electronic grade hydrofluoric acid in mainland China reached 5,319 in 2018.
The domestic substitution of the new microelectronic materials industry will bring better development potential for domestic electronic chemical companies.
In addition to electronic-grade hydrofluoric acid, Xingfu Electronics, a subsidiary of the company in the field of electronic chemicals, is the only national emerging company with independent intellectual property rights of electronic-grade phosphorylation and already has a high market share in the domestic market.
In addition, the company is increasing customer development of other products such as electronic grade sulfuric acid.
Profit forecast: Considering that the acquisition of minority shareholders’ equity in Xingrui will increase the net profit attributable to mothers, we increase the company’s net profit attributable to mothers to 5 in 2019-2021.
660,000 yuan (the original forecast did not consider the acquisition of minority shareholders’ equity as 3).
5.2 billion yuan), corresponding PE is 18X, 14X, 12X, the company’s PB is less than 1X, the safety margin is high, maintain “Buy” rating.
Risk warning: product prices fall sharply; projects under construction progress less than expected