Events:
The company released its quarterly report for 2017, with operating income of 2.023 billion yuan, an increase of 81.81% over the same period last year, a net profit of 147 million yuan, an increase of 494.94% over the same period last year, and basic earnings per share of 0.11 yuan, an increase of 450% over the same period last year.
Comments:
1. The coal chemical industry has warmed up, product prices have risen, and profitability has continued to improve.
In the first three quarters, the coal chemical industry continued to pick up, and the price of coke rose sharply, from about 1500 yuan at the beginning of the year to about 2500 yuan. In the same period of 2016, the average price of coke was less than 1000 yuan, which was significantly higher than the same period last year. During the reporting period, the company's coke sales were 948700 tons, an increase of 9.01% over the same period last year, operating income reached 1.44 billion yuan, an increase of 123.56%, operating costs increased by 106.43%, and profitability was significantly enhanced. The operating income of crude benzene, refined washing oil and asphalt blending components all increased significantly, and the increase in operating costs was relatively low, so the profit space was expanded. Since the beginning of this year, the company's net interest rate has continued to rise, with Q3 reaching 11.27%, an increase of 339% over the same period last year, an increase of 93% month-on-month, and a continuous improvement in profitability.
2. Covering "coal, electricity, chemical, material, heat and oil", needle coke project should be put into production.
The company's main modern coal chemical industry can not only provide oil, natural gas and other clean energy products, but also extend the development of olefins, aromatics and other petroleum alternative products. The company maximizes the utilization of coal resources through a complete industrial chain of circular economy, covering many industries such as "coal, electricity, chemical, materials, heat, oil" and so on.
The 50,000 t / a needle coke project built by the company produced cooked coke products in line with the national standard on October 25, 2017, and officially entered the production stage. The main application fields downstream of high-quality needle coke are graphite electrodes and lithium battery anode materials, whose price is about 4000 yuan / ton at the beginning of the year and has exceeded 30000 / ton in August. Its follow-up sales and capacity release are worthy of attention.
3. The new material business is worth looking forward to.
Relying on the rich local graphite resources, the company actively promotes the graphite and graphite deep processing business with graphene as the core, upgrading from the coal chemical industry to the new material industry, and further extending the industrial chain. The 100-ton graphite project has been completed for trial production on January 4, 2017, and graphene products have been successfully produced. The company's "Baotailong high-end graphite deep processing characteristic industrial cluster" project will lead the industry to the direction of high-tech graphite deep processing. Graphene, as a new material with advanced performance, has a very broad market. after the implementation of related projects, the company's industrial structure will be more optimized and its competitiveness will be further enhanced.
4. Investment suggestions
We estimate that the company's net profits belonging to shareholders of listed companies from 2017 to 2019 are 194 million yuan, 217 million yuan and 248 million yuan respectively, corresponding to EPS 0.14,0.16,0.18 yuan respectively; corresponding to the current share price of 11.16 yuan, PE is 79, 70 and 62 times respectively, giving a "prudent recommendation" rating for the first time.
Risk tips: energy prices, chemical products down risk, new materials business progress is not as expected risk.