Jinhe Industry (002597): Steady Performance Dingyuan Project Opens New Space

Jinhe Industry (002597): Steady Performance Dingyuan Project Opens New Space
I. Overview of the event The company released the third 青岛夜网 quarter report of 2019, and achieved revenue of 29 in the first three quarters.9.4 billion, a decrease of 10 previously.48%; net profit achieved 6.1.1 billion (deduct 5).6.5 billion), an annual decrease of 18.98% (not deducting -20.70%).The EPS is 1.10 yuan, the current net amount 5.6.8 billion, with a ROE (deduction) of 15.15%.Among them, Q3 single quarter revenue reached 10.1.6 billion, at least -6.66%; net profit realized 2.100,000 yuan, at least -0.73%.The company also issued a 2019 performance forecast. It is expected that the profit range for 2019 will be 8?8.500 million, down 6 every year.76%?12.twenty four%. Second, the analysis and judgment of the financial report is stable, and the company’s profitability remains relatively stable. The company’s net sales margin for the first three quarters has steadily increased slightly, reaching 20 in 2019Q3.39%; the expense ratio increased slightly to 9.13%, maintaining relative stability; asset-liability ratio 28.56%, a slight decrease from the previous report.7 levels, maintained at a relatively low level; cash ratio is 105.54%, maintained at a high level, showing the company’s good ability to repay.With reference to the company’s 2019 performance forecast, we estimate that the company’s median Q4 single-quarter net profit is 2.About 2 billion yuan, quarterly, the company’s profitability remains relatively stable.The gradual commissioning of the Dingyuan project in the future will continue to improve the company’s profitability. The first phase of Dingyuan has entered the production phase. The Dingyuan project has enriched the product line and will open up long-term growth space. The company plans to invest 22.$ 500 billion unit: $ 500 billion in assets.Important performance growth points.The overall capacity of the first phase of Dingyuan project: 2 bran, 5,000 tons of monosilane, maltol, 8-butylene chloride; Dingyuan’s second phase is expected to invest about 1 billion to continue to cultivate food additives; Dingyuan projectThe gradual commissioning of the company will enrich the company’s fine chemical product line and provide continuous driving force for the company’s development. The sweetener faucet has continued to strengthen, and the demand for artificial sweeteners has been improving for a long time. The company’s production capacity is 1.2 concentration, the global market share exceeds 50%; sucralose’s production capacity ranks second in the world after expanding to 3,000 tons this year, with a market share of 16%; the total production of maltol is 5,000 tons (1000 tons of methyl, content of 4,000 tons) Is also ranked first in the 深圳桑拿网 world.With the growing serious problems of the growing global population, the increased safety of artificial sweeteners, and increased recognition, the rapid growth in demand for artificial sweeteners will provide the company with broad space for development. Third, investment advice: the company is expected to earn 2019-20211.48 yuan, 1.81 yuan, 2.23 yuan, the corresponding PE is 13.3 times, 10.8 times, 8.8 times.With reference to the estimated average PE level of Shenwan Chemical’s primary industry in 2019 of 18 times, it will be covered for the first time and given a “recommended” rating. 4. Risk warning: The company’s products have experienced unexpected fluctuations, and the Dingyuan project’s production progress has exceeded expectations.