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Dragon Python 南京桑拿论坛 Bailey (002601): Q1 performance improves, industry chain integration layout depth
Event: The company released its 2018 annual report and gradually realized revenue of 104.4.1 billion (+1.78%); net profit attributable to mother 22.8.6 billion (-8.66%); it is proposed to pay 1 yuan for every 10 shares.Revenue in Q1 2019 was 27.780,000 yuan (+9.02%); net profit attributable to mother 6.2.3 billion (+4.19%); It is planned to pay 6 yuan for every 10 shares, and the high dividends will continue. Production and sales are steadily progressing, gross profit insertion has dragged down profits for 18 years, and it managed to rebound in 19 years: the company’s sulfate titanium dioxide production in 2018 was 56.45 absolute (+4.51%), sales 52.60 mm (-0.31%); chlorinated titanium dioxide yield 6.21 digits (+9.02%), sales of 5.96 digits (+4.68%); mining titanium concentrate 80.39 (+1.72%), production and sales have made steady progress.In 2018, the average price of titanium dioxide was about 16696 yuan / ton, which decreased by 3 every year.17%, the spread is reduced by 163 yuan / ton per year.The company’s gross profit margin was 41 in 2018.20%, a decline of 3 per year.92 pct. At the same time, 2018Q4 accrued assets impairment losses of about 200 million, dragging long-term profits.2019Q1 The company gradually sells titanium dioxide 16.For the first time in 06, it has increased by 10 in ten years.11%; gross margin 41.73%, an increase of 0 from 2018.53 points. The first-class company plans to produce titanium dioxide 71.4 nominal, with revenue of 123 million.In 2019, the environmental protection indicators of the titanium dioxide industry will further increase the concentration. At the same time, the introduction of infrastructure policies will make the coatings market optimistic and the demand in the later period will be better. Strategic goal of titanium industry integration to create a circular economy advantage: According to the announcement, the company ‘s titanium dioxide production capacity (including construction) totals 95 goals, with the largest total domestic production capacity, the fourth largest in the world, and the first domestically developed sulfuric acid method-chlorination method.Key technologies for green reorganization of the industrial chain.The company is committed to the transformation and upgrading of the entire industrial chain of titanium concentrate-titanium chloride slag-chlorinated titanium dioxide-sponge titanium-titanium alloy, and accelerates the progress of the second phase of the 20-year replacement chloride process project.Production; intended investment 19.$ 800 million to build 3 high-end titanium alloy projects with an investment of 15.An innovative project of upgrading and transforming titanium chloride slag with 50 tons of titanium and titanium concentrate was constructed for USD 100 million.Create a standard, full-process chlorinated titanium dioxide industry chain to seize development potential. The second phase of the employee shareholding plan was announced. The long-term incentive mechanism is conducive to the stable development of the company: On January 29, 2019, the company’s repurchase of shares was completed.80%, repurchase amount 7.500 million.The company will use all the repurchased shares for employee stock ownership plans, and the budget is expected to be no more than two.US $ 900 million, a general-level share of a collective trust plan, and the total expenditure of the collective trust plan is expected to not exceed 5.For 800 million shares, the trust plan corresponding to the employee shareholding plan intends to transfer the share repurchase price to 10.01 yuan / share.The company’s long-term incentive mechanism will promote the company’s long-term development. Investment advice: The company’s net profit for 2019-2021 is expected to be 3, 3, 5 and 4 billion US dollars, corresponding to PE 11, 9 and 8 times. Maintain Buy-A rating and 6-month target price of 20 yuan. Risk warning: raw material prices fluctuate, demand is less than expected, etc.