Taihe New Material (002254) 2018 Annual Report, 2019 First Quarterly Report Review: Continuously Improved Performance, Aramid Volume and Price Rise

Taihe New Material (002254) 2018 Annual Report, 2019 First Quarterly Report Review: Continuously Improved Performance, Aramid Volume and Price Rise

Event: On April 22, 2019, the company announced the 2018 annual report: revenue 21 in 2018.

7.2 billion, an increase of 39 every year.

72%; net profit attributable to mothers1.

56 ppm, an increase of 56 in ten years.

25%; Estimated increase in average net asset income by 7.
.

46%; 日 On April 22, 2019, the company announced the 2019 first quarter report: 2019Q1 to achieve revenue 6.

56 ppm, an increase of 49 per year.

86%; net profit attributable to mother is 0.

41 ppm, an increase of 14 in ten years.

75%; Estimated increase in average net asset income by 1.

88%.

  Opinions: 1. The net profit attributable to the mother for the 18th annual report increases by 56 each year.

25%, in line with expectations for the 2018 fiscal year, the company achieved net profit attributable to mothers1.

56 ppm, an increase of 56 in ten years.

25%; of which, in 2018Q4, net profit attributable to mothers was 0.

1.5 billion, a year down 0.

1.6 billion (-50.

87%), a decrease of 0 from the previous month.

2.6 billion (-63.

14%).

  The company’s 18Q4 performance fell sharply, only because the price of spandex raw materials remained high at the end of 2018, but the price of spandex continued to decline, and the transfer of the company’s handling of bad inventory caused losses in the spandex business, which dragged down its performance.

  2. Aramid volume and price are rising, the economy is rising, and the performance is expected to continue to grow. At present, the global aramid market size is about 12 tons, of which the meta aramid market size is 4 replacements and the global para aramid market size is 8 replacements.
At present, the domestic demand for para-aramid is about 1 ton, and the actual production capacity is only 2,000 tons. The para-aramid market has a large gap and high import dependence.

The aramid market has a high degree of biology, and Taihe New Materials has long-term supply of high-efficiency meta, para-aramid, which is the leading position in the domestic aramid industry.

In 2018, the company added 6,000 tons / year para-aramid project, and 3,000 tons / year high-performance para-aramid project; in 2019, it added 8,000 tons / year high-efficiency meta-aramid project for protection, and the above capacity will be gradually realized.Release, it is expected that by the end of 2020, the meta aramid production capacity will reach 1.
.

2 samples, para-aramid production capacity reached 4,500 tons, further increasing market share.

  3. The reshuffle of the spandex industry has continued to accelerate. The expansion of leading enterprises and the withdrawal of small enterprises have been carried out in 2017. The continuous production capacity of the spandex industry has been cleared in 2017. The spandex industry is still in the consolidation period in 18 years.

With the implementation of the coal-to-gas policy in the east, coastal companies are facing pressure to withdraw from the city and enter the park.

  The company is the first spandex manufacturer in China, with a current production capacity of 45,0合肥夜网00 tons, ranking sixth in the world.

The company formulated a five-year plan for spandex. It plans to form a spandex production capacity of 9 years / annual production can achieve about 30 annual sales revenue.

800 million, with a total profit of about 4.

600 million yuan.

Its 15,000 tons / year crude denier spandex project and 30,000 tons / year green decomposed spandex project are about to start construction in the third quarter of 2019, and will be put into trial operation at the end of December 2020.

It is expected that by the end of 2020, the company’s spandex production capacity will reach 7.

5 nominal.

  4, the company’s future industrial layout-“dual base” cost difference between the eastern and western parts of the company, the company readjusted the industrial layout.
The company established Ningxia Taihe, a subsidiary in Ningdong, and completed the acquisition of the spandex business of Yuehua New Materials. It is currently in the trial production stage and mainly produces large batches of products.

In response to a series of changes in the spandex industry, the company plans to implement dual-base construction, acquire new land in the chemical park of Yantai Development Zone, aim at the world-class level, implement new park construction, and build 3 high-value-added differentiated spandex projects to promote differencesImprove the efficiency of chemical products, scale up, and increase efficiency.
  5. Investment rating and estimation: It is estimated that the net profit attributable to the mother in 2019/20/21 will be 2 respectively.

13/3.

24/4.

2.5 billion, PE is 34.

93/22.

96/17.

46 times, give “recommended” rating.

  6. Risk reminder: the price of spandex products fluctuates; the operating costs rise; the risk of acquisition of asset integration.