Zhejiang Longsheng (600352): Gross profit margin hits record high in the second quarter

Zhejiang Longsheng (600352): Gross profit margin hits record high in the second quarter

Performance summary: The company achieved operating income of 95 in the first half of 2019.

60,000 yuan, an annual increase of 5.

3%, net profit attributable to mother 25.

30,000 yuan, an annual increase of 36.

2%, net profit after returning to mother 1.

3 ppm, a ten-year increase of 8.

1%, earnings per share are 0.

79 yuan.

Product price increases, gross profit margin hit a record high.

Due to the impact of domestic safety and environmental protection, the company’s products experienced a certain price increase in the first half of the year, especially intermediate 武汉夜网论坛 varieties such as m-phenylenediamine. Therefore, the company achieved gross profit in the second quarter of a single quarter.

The best level in history at 6%.

The relocation of some production capacity in the first half of the year affected product output.

In the first half of the year, the company sold 10 dyestuffs worldwide.

1 Initially, it decreases by 12 every year.

4%, intermediate sales 5.

6 Initially, the annual decline is 4.

6%, sales of additives 3.

7 initially, 5 per year.


The main reason for the decline in the company’s sales volume was the company’s relocation of the company’s Daoxiu factory area and other arrangements, which led to a decline in domestic dye production in the first half of the year28.

3%, the intermediate output fell by 11.

4%, but the company actively seized the opportunity of fluctuations in the international and domestic markets, so the company’s first half performance still improved.

The real estate business progressed in an orderly manner.

In terms of real estate business, the company focuses on Shanghai’s Huaxing New Town project, Datong base project and Huangshan Road resettlement housing project.

The Huaxing New City project actively cooperated with the Jing’an District Government to complete the demolition and completion work. It has obtained the approval for the partial adjustment of the Jing’an District’s regulatory detailed planning in Shanghai. The overall design plan will be further optimized next.

The Datong base project progresses in an orderly manner, and quality and safety are strictly controlled. Pre-sale is expected to begin next year.

The first phase of the Huangshan Road project is in the process of final inspection and acceptance to ensure that the house is delivered this year and revenue is recognized.

The downstream demand of the dye business is acceptable, and it is still bullish in the long run.

From January to June 2019, the output of printing and dyeing cloth for printing and dyeing enterprises above designated size was 238.

700 million meters, an increase of 8 in ten years.

0%, printing and dyeing enterprises above designated size achieved 1361 main business income.

1 ppm, an increase of 1 in ten years.

1%, realized profit growth of 59.

600 million, an increase of 10 in ten years.


Judging from this statistical data, the prosperity of the printing and dyeing industry downstream of dyestuffs is still acceptable. Considering that the production capacity of printing and dyeing enterprises in Shaoxing area has been completely released after the relocation, we are still optimistic about the majority of the dyeing industry.

Profit forecast and rating.

We expect the company EPS to be 1 in 2019-2021.88 yuan, 1.

99 yuan, 2.

31 yuan, maintain “Buy” rating.

Risk reminder: the risk of raw material prices or potential changes; the project’s progress is less than expected; the risk of exchange rate changes; the risk of safety and environmental protection; the risk of real estate policies;