Xin Fengming (603225): Q3 net profit increased 61% month-on-month
Event description: The company released three quarterly reports on October 31, 2019, and achieved operating income of 245 in the first three quarters.
70 ppm, a ten-year increase4.
21%; net profit attributable to mother is 11.
06 billion, down 24 every year.
06%; deducted non-net profit is 10.
07 billion, down 28 every year.
Among them Q3 single quarter net profit 5.
180,000 yuan, an increase of 61%.
Event comment: The company focuses on R & D and is good at management, and its efficiency is higher than the industry average.
The company’s core competitiveness lies in cost control.
In the first three quarters, sales expenses, management expenses, financial expenses, and R & D expenses as a percentage of revenue were 0.
06%, maintaining sustainable levels.
At the same time, the company has advanced equipment and a high degree of automation.
After the addition of PTA and polyester filament production capacity, the scale and management advantages will be further highlighted.
The price of polyester filament fell, the spread narrowed, and profitability was affected to some extent.
According to the company’s operating data disclosure, the average price of polyester filament POY, FDY, DTY in the first three quarters of 2019 decreased by 7378, respectively.
8 yuan / ton, 8004.
1 yuan / ton, 9225.
1 yuan / ton, down 14 before.
The spread has narrowed. The average spreads of POY, FDY and DTY in the first three quarters of 2019 were 1430 respectively.
4 yuan / ton, 1921.
9 yuan / ton, 3023.
8 yuan / ton, a decrease of 161 per year.
2 yuan / ton, up 20.
7 yuan / ton, down 43.
2 yuan / ton.
The company’s polyester filament business revenue for the first three quarters was 216.
5 ‰, an increase of 15 per year.
The total production capacity of the company’s polyester filament will reach 470 tons at the end of the year. It is expected that the new silk production capacity will increase by 110 in 2020, which will promote the promotion of performance.
On October 15, in an answer to a reporter ‘s question, officials from the Ministry of Foreign Affairs stated that China and the United States have reached agreement on the first phase of the agreement.To ease, it is beneficial to the polyester industry chain. The PTA project has been put into production smoothly and continues to be optimistic about its long-term profitability.
According to the company’s operating data, the average PTA purchase price in the first three quarters of 19 was 5,324.
7 yuan / ton.
The earliest drop is 140.
1 yuan / ton.
In the future, after the domestic refining capacity is put into production, the price of PX will fall, and PTA’s profit will gradually increase in the future.
The company’s first-phase annual output of 220 is expected to be put into production in October 2019, all of which are for production self-use, further reducing production costs and improving profitability. It is expected that annual revenue will reach 320.
In 2020, the company is expected to vote an additional 220 votes to become a PTA. The company will adhere to the basic line of “PTA-filament” and extend the company’s industrial chain.
Investment suggestion: We believe that the company is a leader in polyester filament, and the commissioning of the PTA project will enhance its ability to resist risks and is optimistic about the company’s long-term development.
It is estimated that the net profit attributable to mothers in 2019/20/21 will be 14 respectively.
73 trillion, corresponding to EPS 1.
82 yuan, corresponding to PE is 9.
22 times, maintaining the “highly recommended” level.
Risk Warning: The downstream demand is less than expected; the 佛山桑拿网 project construction progress is less than expected.