Events:
The company announced that it achieved a sales income of 548 million yuan and a net profit of 11.95 million yuan, with a substantial improvement in performance compared with the same period last year. The success of the company's coal-to-ethylene glycol technology is no longer controversial, the key is the next production and management trend.
Comments:
1. Tongliao Gold Coal has been operating stably under high load for a continuous year, and there is no dispute over the breakthrough in coal-to-ethylene glycol since the second half of last year. Except for planned parking and maintenance, the plant load has been maintained at more than 90%. Since April 14, the company's products have been accepted by some large filament enterprises with good results. Anyang Yongjin's device load also exceeded 90%.
2. After the implementation of the capacity expansion project at the end of the year, there is still room for the cost of coal to ethylene glycol to decrease.
The company plans to expand and transform Tongliao Gold Coal. After the transformation, the production capacity of ethylene glycol and oxalic acid is expected to increase by 70,000 tons and 30,000 tons respectively. At the same time, the bottlenecks restricting the increase of plant load will also be broken through at the same time. At present, the cost of ethylene glycol is about 5000 yuan, which is expected to be reduced to 4400 yuan / ton by the end of the year.
3. The follow-up trend is worth looking forward to.
There are many coal-to-ethylene glycol projects under construction in China, but they can operate stably for a long time, and the only enterprises whose products reach polyester level are Danhua Technology and Tianye Group. Recently, the company has also stressed its intention to make use of accumulated experience and technological advantages to speed up the transformation of business model and increase industrial expansion. We note that the company recently acquired a 100% stake in Yuanjing Chemical. Yuanjing Chemical's 8000 tons of glycolic acid is an important derivative of dimethyl oxalate, which is subversive to the degradable plastics industry.
3. Maintain the highly recommended-A rating
The company's earnings per share from 2015 to 2017 were 0.03 yuan, 0.20 yuan and 0.31 yuan respectively. Taking into account factors such as performance reversal, valuation switch and follow-up development, the company was given a target price of 12 yuan and maintained a "highly recommended-A" investment rating.
Risk hint: Henan coal chemical subordinate to the five sets of equipment progress is different, product quality is different. Oil prices continue to fall.
