Syntec (603086): Performance in line with expectations continued growth space opened
Event: The company released the 2019 first quarter report, and the company achieved operating income during the reporting period3.
6.1 billion, an annual increase of 15.
57%; net profit attributable to mother 0.
410,000 yuan, an increase of 40 in ten years.
72%; net profit after deduction to mother 3.
96 ppm, an increase of 42 in ten years.
Opinions: Both volume and price have risen significantly, and performance has continued to grow at a high rate: during the reporting period, the company’s dimethoxone, imazapyr, clomazone, dimethomorph, and imazapyr achieved revenue1.
4.4 billion, 0.
7.6 billion, 0.
5.9 billion, 0.
35 ppm, 0.
USD 2.5 billion, a year-on-year increase of 65%, 42%, -43%, 60%, 74%. The total revenue of the five major series of products reached 94%, an increase of 4% each year.
From the perspective of the company’s main product operations, the sales of methotrione were 722 tons, an increase of 50% every other, and an average sales price of 20 million / ton, an increase of 10%.
The sales volume of imazapyr was 379 tons, an increase of 38%, and the average sales price was 20 million / ton, exceeding 3%.
The sales volume of clomazone was 664 tons, a reduction of 55% over the average sales price of 8.
9 million / ton, up 27% previously.
Dimethomorph sold 234 tons, an increase of 2% per year, with an average sales price of 14.
90,000 yuan / ton, a 58% increase in the past.
Under the continuous high pressure of the industry safety and environmental protection regulatory department, the price of the company’s products has increased twice in varying degrees, and the company’s comprehensive sales gross profit rate has been driven by the rise in prices.
44%, an increase of 2 per year.
The sales volume of the company’s acetochlor, imazatobacco, etc. also achieved an increase. We expect that the company’s market share will increase due to the company’s active procurement management policies.
The three fees have increased significantly, environmental protection expenditures have increased significantly, and the procurement and stockpile policy has 南宁桑拿 been proactive: during the reporting period, the company’s management expenditures were 38.43 million yuan, an annual increase of 50%, mainly due to the increase in environmental protection costs.
Affected by the increase in freight costs, the company’s sales expenses were 6.9 million yuan, an annual increase of 84%.
In addition, due to the increase in exchange losses, the company’s financial expenses were 6.54 million yuan, an annual increase of 2.94 million yuan.
The company’s first quarter net profit was 11.
26%, an increase of 2 per year.
The company increased the upfront costs such as environmental protection, while ensuring the company’s production stability, it also provided space for the optimization of subsequent cost management.
During the reporting period, the company received cash paid for labor services for purchasing goods3.
51 ppm, an increase over the same period last year1.
53 trillion, the increase in procurement and stocking expenses led to the company’s operating cash flow in the first quarter was -0.
Company inventory at the end of the first quarter4.
160,000 yuan, an increase of 45 million yuan compared with the end of the fourth quarter of 2018.
In the context of tighter industry supply, the company implemented an active procurement and stockpile policy to ensure the stable operation of the company and strive to enjoy higher inventory returns.
Huludao base opened up continuous growth space, and Anhuan supervision increased market share: the company’s construction in progress at the end of the first quarter was terminated1.80 ppm, an increase of 29% per year, to transform the warming of the climate in the Northeast. We expect the Huludao base project to accelerate further in the second quarter.
The company’s first phase is to build 6000 tons of original medicine, 1 preparation, and the project payback period is 3.
In 2004, a higher return on investment means that the company may have strong control over future products or new production capacity with a comprehensive cost advantage.
As the first phase of the project is completed and put into production, the second phase of the project is expected to relay, and the new products and new products will continue to flow, and the company will open up long-term growth space.
The Xiangshui accident and continuous domestic safety and environmental protection supervision will further promote the centralization of orders from overseas multinational giants. The company’s park is standardized and has a higher safety mat, which can rapidly expand production capacity and expand the company’s market size.
Profit forecast: Maintain the company’s operating income for 2019-2021 to 19 respectively.
5 billion, 25.
54 ppm and 31.
4.3 billion yuan, net profit attributable to mothers was 3.
1 billion, 4.
1.9 billion and 5.
With a forecast of 2.4 billion, the corresponding EPS is 2 respectively.
76 yuan / share, 3.
74 yuan / share, 4.
68 yuan / share, corresponding to PE of 14X, 10X, 8X, maintain “Buy” rating.
Risk Warning: Product Price Drops Significantly; New Project Progress Is Less Than Expected