Home emjfyfzntHualu Hengsheng (600426): The Q1 2019 results have increased significantly from the previous quarter, and new projects are expected

Hualu Hengsheng (600426): The Q1 2019 results have increased significantly from the previous quarter, and new projects are expected

Hualu Hengsheng (600426): The Q1 2019 results have increased significantly from the previous quarter, and new projects are expected

Event: The company released the 2018 first quarter report and achieved revenue of 35.

43 ppm, a 10-year increase3.

03%; net profit attributable to mother 6.

42 trillion, down 12 a year.

51%, an increase of 32 from the previous month.


The performance of 2019Q1 is improved compared to 2018Q4, and the price is increased by volume, and the gross profit is increased: The company’s performance change in 2019Q1 is mainly due to the decline in product prices and the gradual decline in gross profit margin1.

59 pct, three rates increased by 0.


However, Q1 2019 performance increased by 32 compared with Q4 2018.

4%. Although the prices of products have all fallen month-on-month, sales have increased, raw material prices have fallen, and gross profit margins have increased.

The main products of the company in Q1 2019 were urea, acetic acid, methanol, ethylene glycol, isooctanol, adipic acid, DMF, and melamine.

93%, -28.

48%, -13.

90%, -19.

79%, -12.

10%, -5.

94%, -11.

88%, -16.

70%, raw coal, pure benzene, and propylene ring ratio changed by -1.

99%, -19.

16%, -13.

02%, 2019Q1 gross profit margin 28.

55%, up 5 from the previous quarter.

6 pct, leading to a significant increase in performance from the previous quarter.

In 2018, the company has 50 carbon dioxide / year sulfate, 10 oxides / year melamine (second phase), and some of the fertilizer functionalization units have been put into production successively, highlighting the advantage of volume supplementation.

The nationwide upgrade of security surveillance is expected to gradually withdraw from small production capacity, which will boost the prosperity of chemical products. After the explosion accident in Xiangshui, the security surveillance operation was put on the agenda.

It is reported that the State Council ‘s Security Committee has now stationed in Xinjiang, Shaanxi, Chongqing and other provinces, autonomous regions, and municipalities. Provincial governments ‘inspections and inspections of work safety and fire protection have officially started.

The withdrawal of small-capacity under-supervision will shrink the supply side of the chemical industry again, and the concentration of the divided industries is expected to increase. The company will benefit from becoming a leading coal chemical company.

The integration advantage is significant, and a new round of production capacity layout is launched: relying on the core technology of clean coal gasification, the company has created a “one head, multiple lines” circular economy and flexible multi-generation production operation model.

According to the announcement, the company will invest 15.

7.2 billion yuan construction 16.

66 Initial / year refined adipic acid quality improvement project, expected to achieve profit growth2.

960,00佛山桑拿网0 yuan; investment 49.

8 trillion US dollars for the construction of new amide and nylon materials projects, including annual production of caprolactam 30 replacement (of which 20 catalysts are for personal use), toluene 20 esters, nylon 6 chip 20 additives, ammonium sulfate 48, etc., is expected to achieve total profit 4.

4.6 billion.

It will further develop the company’s industrial chain, optimize its product structure, and improve its profitability.

Investment suggestion: It is estimated that the net profit for 2019-2021 will be 2.7 billion, 3 billion and 3.3 billion yuan, corresponding to PE 9.8.


0 times, maintain Buy-A rating, 6-month target price of 20 yuan.

Risk reminder: the price of raw materials fluctuates sharply, the construction progress of new projects is less than expected, etc.