Lier Chemical (002258) 2019 semi-annual performance newsletter comment: the first half of 2019 began to achieve rapid growth performance changes due to factors such as price declines in major products
Investment Highlights Event: Lier Chemical released its 2019 semi-annual performance report, which reports that it can achieve operating income20.
53 ppm, an increase of 12 in ten years.
68%; realized operating profit 2.
40 ‰, a decrease of 29 per year.
95%; realize net profit attributable to shareholders of listed companies.
60 ppm, a decrease of 38 per year.
80%, press the latest 5.
Based on the total share capital of 2.4 billion shares, the return was zero.
Among them, the second quarter achieved operating income in a single quarter.
350,000 yuan, an annual increase of 43.
35%; realized net profit of 0.
87 trillion, down 39 a year.
Maintain the rating of “Prudent Overweight”.
Lier Chemical has adopted an active market strategy, and sales revenue in the first half of 2019 has achieved rapid growth every year.
However, the price cuts of some major products, the increase in operating costs of the Guang’an base, and the rise in the prices of some raw materials have affected the company’s main product profit margins and the company’s performance has declined.
Lier’s chemical products are rich in structure, covering three major series of herbicides, fungicides, pesticides, a total of more than 30 kinds of original drugs, more than 100 kinds of preparations and some chemical intermediates.
The company’s glufosinal, formaldehyde, and scopolamine are the first in the country in terms of production and sales, and the long-term outlook is positive.
Affected by fierce competition in the industry, the price of glufosinate has recently fluctuated, causing disturbance to the company’s operations.
The company has solved major 杭州夜网论坛 engineering technical problems such as format reaction control and amplification in glufosinate formaldehyde production. It has comprehensively mastered key synthesis technologies, has a high degree of integration in the production process, and has outstanding cost and scale advantages.
The company ‘s Guang’an 36,000-ton pesticide and fine chemicals project has steadily advanced, and plans to invest about 2 billion US dollars in Jingzhou, Hubei to set up a new company, which is an important growth of the company’s future performance and will provide long-term growth for the company.
We adjust the company’s EPS forecast for 2019-2021 to 0.
00 and 1.
40 yuan, maintaining the investment rating of “prudent increase”.
Risk reminders: The project construction progress is not up to expectations; raw material prices fluctuate sharply; downstream demand is sluggish; competition in the industry is intensifying.