Juhua Shares (600160): The main product price gap narrowed during the 19H1 performance transition period

Juhua Shares (600160): The main product price gap narrowed during the 19H1 performance transition period

Incident company released the semi-annual report for 2019. In the first half of 2019, the company achieved revenue of 75.

80 ppm, a reduction of 6 per year.

50%; net profit attributable to mother 7.

0.5 billion, a year-on-year decrease of 33.

75%; net profit after deduction 5

32 trillion, a decrease of 44 a year.

35%.

Brief comment on the possibility of narrowing the price gap of major products leading to a decrease in profits. In the first half of 2019, the company achieved revenue of 75.

80 ppm, a reduction of 6 per year.

50%; net profit attributable to mother 7.

0.5 billion, a year-on-year decrease of 33.

75%; net profit after deduction 5

32 trillion, a decrease of 44 a year.

35%.

Non-recurring gains and losses in the reporting period mainly come from government subsidies included in the current gains and losses.

7.4 billion.

As a result of business mergers under the same control in 2018, the above comparisons have adjusted and adjusted the relevant data for 2018.

Net profit attributable to mothers was achieved in Q2 20193.

35 ppm, a reduction of 47 per year.

64%, down 9 from the previous month.

46%, but the net profit after deducting non-Q2 has increased compared to Q1.

The reported prices of the company’s products have fallen sharply. Although the prices of raw materials have also shown a downward trend, the overall decline has decreased, resulting in narrowing product price gaps and weakening profitability.

Among them, product prices fell for a decade to reduce profits.

65 ppm, the price of raw materials fell 10 years to increase profits2.

3.4 billion.

The price changes are as follows: Among the main products, the price of fluorochemical raw materials fell by 22% year-on-year.

95%, the price of refrigerant drops every ten years.

72%, the price of fluoropolymer materials decreases by 21 every time.

09%, the price of fluorine-containing fine chemicals exceeded 40.

43%, the price of food packaging materials fell 24% year-on-year, and the price of petrochemical materials fell 15% year-on-year.

15%, and basic chemical products fall by 11 per year.

15%.

Among the main raw materials, industrial salt prices fell6.

38%, the price of calcium carbide decreases by 6 every year.

89%, the price of tetrachlorocarbide increases by 12 every year.

39%, VCM price rose 2 深圳桑拿网 year-on-year.

20%, the price of anhydrous hydrogen fluoride decreases by 13 each.

54%, the price of methanol drops by 20 per year.10%, the price of benzene dropped 27 than before.

72%, high sulfur and high iron prices rose more than 6.

48%.

Fluorite resources are scarce, and the downstream fluorine chemical industry has developed rapidly, resulting in a periodical imbalance between supply and demand, leading to rising prices.

02%.

From the perspective of production and sales, the report forecasts the output of fluorinated chemical raw materials64.

In 27 months, the year-on-year growth was 34%, and the sales volume was 28.

27, an annual increase of 15%; refrigerant output 17.
.

87 each year, a year-on-year increase of 5%, and the sales volume is 11.

41 inches, an increase of 8% per year; output of fluoropolymer materials4.

In December, the year-on-year growth was 15%, and the sales volume was 1.

In March, the annual growth rate was 22%; the output of food packaging materials was 5.

49 decreased by at least 11% each year, and the sales volume was 3.

45 inches, an annual increase of 7%; output of petrochemical materials11.

07 Initially, the year-on-year growth was 4%, and the sales volume was 6.

20, with an annual growth rate of 4%; the output of basic chemical products is 108.

91 annual growth of 43% a year, 65 sales.

65% annual growth rate of 3%.

In terms of expenses, the reported potential company selling expenses were 2.

60 ppm, an increase of ten years.

46%; administrative expenses 2.

77 ppm, an increase of 16 in ten years.

27, mainly due to the increase in personnel, wages and social security costs; financial costs of 16.43 million yuan, compared to 23.11 million yuan in the same period last year; research and development costs 2.

47 million, a decrease of 29 per year.

53%.

In terms of cash flow, the reported operating company’s net operating cash flow was 7.

64 ppm, a decrease of 44 per year.

48%, mainly due to the decrease in profit and the increase in production and sales volume, and the increase in accounts receivable; the net amount of investment cash flow was -5.

80 trillion, compared with -13 in the same period last year.

500,000 yuan, a year of 55.

53%; net funding cash flow is -6.

15 trillion, -1 in the same period last year.

500,000 yuan, an increase of 488 every year.

06%, mainly due to the increase in cash dividends.

The price of fluorochemical products has continued to fall, and the prices of some products have reached the bottom. Recently, the fluorochemical industry chain still shows a strong upstream and a weak downstream pattern.

1) In the field of fluorite, with the continuous improvement of industry access standards, “small, scattered, and chaotic” production capacity has been cleared and supply has contracted. The price has been firm since the last step, and the price of fluorite fine powder has always remained near 3100 yuan;In terms of acid, with the downturn in downstream demand, prices have fallen, from 1,1,500 yuan at the end of July to about 10,500 yuan; 3) In terms of refrigerants, as downstream air-conditioning enters the off-season, the overall price of refrigerants has improved.Increasing policy capacity can still maintain considerable profit margins. The prices of the third-generation agents R32 and R125 have fallen to the bottom; 4) The correlation between the price of fluoropolymer PTFE and R22 has been supplemented, and although it has declined, it can still maintain profitability.
Looking forward to the future, it is worth looking forward to the prosperity of the fluorine chemical industry chain.

The production capacity continues to be cleared, and the fluorite boom can continue to be the gradual basis for the price center of the industrial chain. With the further deterioration of the supervision of hazardous chemicals, the scarcity of hydrofluoric acid production capacity will gradually change; R22 capacity will be further reduced in 2020; at the same time, three generationThe refrigerant will enter the base year and the large-scale expansion will come to an end. The refrigerant industry may usher in a new wave of economic prosperity.

Maintain “Buy” rating Due to the recent decline in product prices, the company’s 19-20 year profit forecast has been lowered to 16.
59, 18.
13 trillion, the corresponding EPS is 0.

61 yuan, 0.

66 yuan, corresponding PE is 12X, 11X, maintaining the “buy” level.