The volume and price of the products rose, and the net profit of returning home increased by 36.65% in the first half of the year.
In the first half of 2017, the company achieved operating income of 642 million yuan, an increase of 19.02% over the same period last year, and a net profit of 39 million yuan, an increase of 36.65% over the same period last year. The performance growth is mainly due to: 1) the sales volume and prices of inorganic and manganese salt products increased year-on-year; 2) the company's investment loss in Hongxing Logistics decreased by 5.22 million compared with the same period last year; and the expense rate during the sales period decreased by 1.56% over the same period last year.
The sales volume of inorganic salt products remains high, and the increase in sales price helps to improve the performance. According to the annual report, the company's production and sales of barium carbonate and strontium carbonate have been maintained at about 300000 tons in recent years, accounting for 1% of the world's production and sales, making it a world leader. Due to periodic inspection and maintenance of some production lines in the first half of 17 years, the output of barium salt and strontium salt was 164600 tons, down 4.56% from the same period last year. However, in order to reduce inventory pressure and increase sales efforts, the company sold 179600 tons in the first half of the year, an increase of 12.9% over the same period last year.
At the same time, the selling prices of barium carbonate, barium sulfate and strontium carbonate increased by 20.6%, 20.9% and 7.1% in the second quarter compared with the same period last year.
The price of inorganic salt has risen together to improve the performance of the company. In addition, the company's controlling shareholder has a domestic high-quality barite mine, and the company is adjacent to the best domestic celestite mining area, the advantage of raw material procurement cost is obvious.
High Purity Manganese Sulfate faucet benefits the Rapid Development of Ternary Materials
In the first half of 17 years, the company produced 6469 tons of high-purity manganese sulfate, an increase of 27% over the same period last year; sales volume of 6525 tons, an increase of 46% over the same period last year; and the price in the second quarter was 5465 yuan / ton, up 11% from the same period last year. High purity manganese sulfate is mainly used in lithium battery ternary cathode (precursor) materials. With the rapid development of new energy vehicles, its demand will continue to increase, which is conducive to the release of production capacity. According to the 2016 annual report, the company expects to produce 19400 tons of high-purity manganese sulfate in 2017 (with a production capacity of 10,000 tons / year). The volume and price increase synchronously, and the performance contribution increases.
Give the company a "cautious overweight" rating
As the leader of barium salt, strontium salt and high purity manganese sulfate, the company is expected to have an EPS of 0.31,0.48,0.64 yuan respectively in 17-19, and the corresponding PE of the latest closing price is 41,27,20 times, giving the company a "cautious overweight" rating.
Risk hint: the production capacity of high purity manganese sulfate is lower than expected, and the increase of product price is not as expected.