Bio-Chem (603360) semi-annual report comment: new production capacity put into operation smoothly Q2 performance exceeded expectations

Bio-Chem (603360) semi-annual report comment: new production capacity put into operation smoothly Q2 performance exceeded expectations

The raised investment projects went into production smoothly in the second quarter, and the company’s performance increased significantly.

The company achieved revenue 3 in 2019H1.

500,000 yuan, an increase of 38 in ten years.

81%; net profit attributable to mothers1.

09 million yuan, an increase of 77 in ten years.

39%, equivalent to EPS 0.

60 yuan / share, an increase of 76 in ten years.

47%, with an average ROE of 13.

16%, an increase of 4 per year.

37 units.

Among them 19Q2 achieved revenue 2.

13 ppm, an increase of 68 in ten years.

56%, an increase of 55.

47%; net profit attributable to mother is 0.

810,000 yuan, an increase of 125 in ten years.

37%, an increase of 153.

13%, the company’s performance exceeded expectations.

At the same time, since the fund-raising projects were put into production in 19Q2 and 19Q3, the gradual release of the fund-raising capacity will make the company’s production and sales scale significantly increase.

  F. Neil and its downstream products make up for it. At present, product prices are still firm and profitability is strong.

2019H1 company gross profit margin 53.

77%, an increase of 11 per year.

29 pct, net interest rate 32.

17%, an increase of 7 per year.

19pct, mainly due to the increase in the prices of products such as FNil and BIT; the net operating cash flow was 0.

83 ppm, an increase of 13 per year.

70%; construction in progress 0.

79 trillion, an increase of 107 every year.

44%, mainly due to the company’s new projects or expansion of CIT, MIT, OIT, BIT and other projects.

Q2’s F Neal and BIT prices have grown for ten years.

48% and 233.

09%. At present, the average price of F nitrile is maintained at 80,000-90,000 / ton, and the BIT price is maintained at 200,000-250,000 / ton. The product price is still firm; the output of F nitric acid is 200 in the second quarter.

25 tons, 242 sales.

75 tons, down 49 each year.

59%, 46.

04%, mainly due to the impact of environmental inspections on the decline in the operating rate and the expansion of the project trial production time and other factors, after the third quarter of F intermediate intermediate expansion project investment, the expected reduction in production and sales will be improved.

  F. Neal, MIT and BIT are the growth points in the second half of the year.

The company is the largest isothiazoline industrial fungicide manufacturer in Asia, with 3 tons of CIT / MIT fungicide capacity, 1,000 tons of OIT and 2500 tons of BIT.

CIT / MIT, OIT’s central 3-methyl propionate production is very polluting. The company’s main domestic intermediate, 3-3-dimethyl propionate, is environmentally problematic, and the factory relocation has caused CIT / The MIT market is tight, and the integration cannot solve the intermediate supporting problem in the short term.The current global CIT / MIT production capacity is about 8-9 tons, of which the expansion capacity 2 is inserted, the Bion capacity 3 is combined with supporting intermediates, and the current price is 1.

About 40,000 / ton, the future CIT / MIT price increase will be an elastic resistance to the company’s performance. F. Neil, MIT and BIT are the company’s profit growth points in the second half of the year.

  The company moves forward to downstream preparations, opening up future estimates and growth space.

The industrial fungicide business model is similar to pesticides, dyes, and the integration and integration of cost and technical advantages of Bio-Aid is expected to enter the formulation field in the future. The industrial fungicide formulation end has higher added value. Currently, 西安耍耍网 most of the market is included in business mergers. In the future, technology must be adoptedWith the breakthrough of market channels, the company’s profitability is expected to further improve, which will open up the company’s future forecast and growth space.

  Earnings forecast and investment grade: We raise the company’s earnings forecast.
Net profit attributable to mothers is 4 in 2021.

02/6.

20/7.

64 ppm, EPS is 2.

15/3.

32/4.

09 yuan, the current corresponding PE is 12/8/6 times.

With the release of new production capacity such as F. Neil and BIT, and the rise in prices of products such as CIT / MIT, the company’s performance is expected to grow rapidly in the next few years, and the performance is flexible. Maintain the “Buy” rating and continue to recommend it.

  Risk reminder: The progress of the investment and investment projects is less than expected, the new capacity enters and intensifies competition in the industry, the price of raw materials fluctuates, the risk of safe production, and the risk of exchange rate changes.