Guanghui Energy (600256)： Main product prices fall due to falling profits, investment projects will contribute to future performance increases
Guanghui Energy (600256): Main 南宁桑拿 product prices fall due to falling profits, investment projects will contribute to future performance increases
On August 14, Guanghui Energy released its semi-annual report for 2019.
At the core of the report, the company achieved operating income of 64.
20 ppm, a ten-year increase of 7.
27%; net profit attributable to mother 7.
8.2 billion, a decline of 9 per year.
Among them, the second quarter operating income increased by 18 per year.
22% in the second quarter, net profit attributable to mothers fell slightly by more than 0.
Our Analysis and Judgment (I) The increase in sales of main products has helped increase operating income, but the decline in prices has led to lower profit margins.
In the first half of 2019, the company’s sales of natural gas, methanol and coal-based oil products reached 14 respectively.
3.4 billion cubic meters, 52.
36 brackets, 19.
50 initially, 33 per year.
91%; coal sales were 370.
71 at least, down 8 per year.
Benefiting from the significant increase in sales of the company’s main products, the company’s revenue increased even longer7.
Reporting the average, the average domestic methanol price dropped by 19.
40%, the average LNG price fell by 5.
Affected by the overall market, the company’s average sales price of methanol decreased by more than 450 yuan / ton, the average sales price of Qidong’s outsourced LNG decreased by 400 yuan / ton, and the prices of other chemical products also fell to varying degrees; and the price of coal as a raw material for coal chemicalGo strong.
Under the comprehensive factors, the company’s net profit attributable to its mother decreased by 9%.
(II) The period expense ratio was well controlled and maintained in the historically high level report. The company period expense ratio was 13.
65%, only a slight increase of 0 a year.
The three units were mainly caused by the increase in the sales expense ratio and the management expense ratio, while the financial expense ratio decreased.
Overall, the company’s period expense control is good, and the period expense rate remains at historical levels.
(III) Leaders increase their holdings, and the company’s repurchase demonstrates confidence in the company’s development. On July 11, the company issued an announcement. The company’s directors, supervisors, senior management personnel and core management personnel of important subsidiaries voluntarily increased their holdings from the secondary market with their own funds.The company’s shares (gradually no less than 18,445,000 shares) have been fully increased within 6 months from the date of the first increase.
On August 14, the company gradually adopted the “Guanghui Energy Co., Ltd.’s Quotation on Repurchasing Shares by Concentrated Auction Transactions”, and the total amount of funds converted into repurchase did not exceed RMB 700 million (inclusive), and did not exceed RMB 1 billion.(Inclusive).
Leaders increased their holdings and the company’s repurchases showed strong confidence in the company’s continued and stable development in the future and a high recognition of the company’s long-term investment value.
(IV) Investment projects are gradually progressing. Future performance is guaranteed. The company’s 115 / year LNG project in Qidong Phase II has been formally launched in June 2019. 75% of the total project volume of Phase III projects is expected to be put into production this year.
The Hung Hom Railway was opened for use in January 2019 and 杭州夜网论坛 entered the trial operation phase.
The construction progress of the Xinhuixia 120 initial / year crude aromatic hydrocarbon hydrogenation project (the first phase of 60 years / year) is progressing in an orderly manner.
The company’s “1000-ton / year coal classification upgrading and clean utilization project” carbonization Ⅰ and Ⅱ series units were formally put into operation in June 2018 and December respectively. At present, the operation status of the two series units is stable.
The EPC contract extension of the project for the comprehensive production of 40 calcium carbonate per year from the comprehensive utilization of waste gas has been completed, and the safety assessment approval and environmental assessment approval have been obtained.
With the increase in sales of LNG, upgraded coal, coal-based oil products, and reduction in freight rates by railway operation, and the completion and commissioning of a calcium carbonate project with an annual output of 40 for comprehensive utilization of waste gas, the company’s future performance will achieve deterministic growth.
Investment recommendations take into account that the company’s main product prices have fallen more than expected, and that coal grade upgrading and utilization projects have failed to meet expectations. We lower the company’s EPS for 2019-2021.
38 yuan / 0.
49 yuan / 0.
55 yuan to 0.
29 yuan / 0.
42 yuan / 0.
51 yuan, corresponding to 15 for PE.
4 times / 10.
6 times / 8.
Although the company’s short-term internal performance is under pressure, the gradual promotion of investment projects will help the company’s performance growth, be optimistic about the company’s long-term development, and maintain a “recommended” rating.
The risk reminds that the price of the main product will drop significantly, the operating income will be lower than the expected risk, and the project construction progress will be lower than the expected risk.