Hualu Hengsheng (600426) Third Quarterly Report Review: Grain Inventory Is Low and Future Raw Materials May Decline

Hualu Hengsheng (600426) Third Quarterly Report Review: Grain Inventory Is Low and Future Raw Materials May Decline

Investment Highlights: The company’s third quarterly report disclosed the company’s third quarterly report for 2019, with operating income of 10.6 billion US dollars, and the number of replacements.

2%; deduct non-net profit 18.

8 ‰, 25 years ago.

9%; in the single quarter, the operating income in the third quarter was 35.

35 trillion, unchanged from the previous month, alternating ten years.

2%; single quarter net profit 6.

30,000 杭州夜生活网 yuan, a year-on-year decrease of 29% and a month-on-month decrease of 9.

6%; volume and price breakdown: basically in line with expectations, the company continues to adjust flexibly, increasing the production and sales volume of polyols. In terms of business, the changes in the third quarter increased by acetic acid, ethylene glycol, and DMF; and urea decreased significantly— Urea: The output in the single quarter was basically flat month-on-month, with an annual growth rate of 25%; the price of urea has recently improved, and the price of urea futures has fallen below 1700 yuan / ton.

-Organic amines: 8% increase in production, but 7% accumulation;-Acetic acid and derivatives: 6% increase in output, but cellulose replaced 37%, which is the largest drag unit;-Polyol business of the company: large increase in output184%, from 6 destinations to 17 endpoints, an increase of about 2 from the previous quarter.

5 benchmarks; risk reminders: the risk of safe production; the risk of rising raw material prices; profit forecasts and estimates The company’s market attention is relatively high, and the profit estimate is sufficient, but we estimate that the company ‘s potential future expectations are: One: raw materialsThere is room for cost reduction; two: the consolidation of existing inventory locations; three, due to the company’s flexible production, it may not rule out that the price of some products may exceed expectations after the product is disrupted; maintain the company’s profit forecast, netProfits were 28.

69, 33.

01, and 44.

50,000 yuan, the corresponding PE is 9 respectively.

24, 8.

03, 6.

02 times, maintain the company’s buy rating.

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