Hualu Hengsheng (600426): Performance in line with expectations continues to be bullish on the company’s long-term growth

Hualu Hengsheng (600426): Performance in line with expectations continues to be bullish on the company’s long-term growth

This 深圳丝袜会所 report reads: As a high-quality leader in coal chemical industry, although it is in the industry’s down cycle, its cost advantage performance is still worthwhile.

The company’s new projects in the future will further open up the growth space and maintain the level of holdings.

Investment Highlights: Maintain overweight.

Maintain the profit forecast. It is expected that the EPS for 2019-2021 will be 1.



94 yuan.

Due to the rich reserves and cost advantages of new projects, the estimated premium is given. With reference to the estimates of chemical industry leaders, 14 times PE in 19 years is given, corresponding to a target price of 20.

02 yuan, maintaining the overweight rating.

19Q3 results were in line with expectations.

In the first three quarters of 2019, the company realized a net profit attributable to its mother of 19.

12 ppm, a decrease of 24 per year.

55%, of which Q3 is 6.

30,000 yuan, the performance is at least -29 quarter-on-quarter and annually.

38% and -9.


In the third quarter, the company’s products rose, fell, and fell. The prices of urea, adipic acid, acetic acid, and cholesterol (including tax) were 1,845 yuan / ton (money-120 yuan / ton) and 8,317 yuan / ton (money-344 yuan / ton).Tons), RMB 3072 / ton (RMB 383 / ton) and RMB 4611 / ton (RMB 128 / ton).

The company’s third-quarter results still have added value, mainly due to the company’s cost reduction and efficiency improvement, and gradually reduce costs, and profits such as acetate and glycerin increased.

Significant cost reduction and efficiency enhancement.

The company upgraded the traditional industry in 2017, and the comprehensive utilization of cleaner production project helped the formation of a new coal gasification platform.

The completion of the new coal gasification platform can further reduce the company’s product cost and enhance its cost advantage.

According to estimates, the coal water slurry gasification technology promotion company has a cost advantage of 200-300 yuan / ton compared with the previous domestic.

In addition, the price of raw materials such as coal, propylene and pure benzene continued to decline, and the company’s costs were 深圳桑拿网 generally controllable.

New projects open up room for future growth.

The company’s reserve items include 30 kinds of free radical caprolactam, 20 kinds of cations, 20 kinds of nylon 6 slices, 48 kinds of ammonium sulfate and 16 kinds.

66 cutting-edge refined adipic acid, of which the amide and nylon new material project and refined adipic acid quality improvement project have started construction. The horizontal and vertical extension of the industrial chain to which the new project belongs, after completion, it may significantly increase the company’s performance.

Risk reminder: the risk of falling product prices, and the risk of new project construction falling short of expectations.