The company announced that it achieved operating income of 967 million in the first three quarters,-7.71% of the same period last year, and net profit of 126 million, + 73.89% of the same period last year, in line with expectations.
Comments:
Intermediate production capacity gradually reached production, continue to reduce the impact of raw material price fluctuations during the reporting period the company completed sales income of 268 million yuan, year-on-year-17.86%, month-on-month-75.92%, return to the mother net profit of 26 million yuan, year-on-year + 135.62%, month-on-month-55.93%. The decrease in operating income from the same period last year is due to the fact that from April this year, Qicaiyun e-commerce is no longer included in the scope of the company's merger, affecting the company's total operating income. Under the influence of the national environmental protection and supply-side reform, the price of dye products rose steadily. During the reporting period, the average price of disperse dyes was 40.50 yuan / kg, which was + 70.89% year on year and + 3.32% compared with the same period last year, benefiting from the steady increase in the price of disperse dyes. During the reporting period, the company's sales gross profit margin was 31.95%, month-on-month + 1.7pct, year-on-year + 13.07pct. In addition, the first phase of the company's 30000-ton intermediate project has been completed. Effectively reduce the fluctuation of raw material cost, at the same time, in addition to self-use, the external sales of some intermediates also increase the contribution of gross profit. The net profit rate of sales is 8.03%, month-on-month-8.6pct, year-on-year + 4.9pct, mainly due to the decrease in investment income (25% investment income from the transfer of Qicai Cloud equity confirmed in the second quarter).
Continue to lay out the digital industry and provide strong support for future growth
By participating in Suzhou Ruifa Printing Technology Co., Ltd., establishing Shanghai Annuoqi Digital Technology Co., Ltd., newly established Shanghai Qizan Digital Technology Co., Ltd. (main international market), Shanghai Shanghu Digital Technology Co., Ltd. (main domestic market), the company has initially completed the layout of the digital industry, including digital printing nozzles and their chips, digital dyes, digital ink, B2C digital printing terminal flexible customization platform and so on. The digital industry expands from B to C, expanding the huge consumer market of digital terminals. At present, Suzhou Ruifa's chip sprinkler production line has been completed, with a design capacity of 10000 / year.
It is optimistic that under the strong constraints of long-term environmental protection, the supply and demand pattern of the dye industry has been continuously optimized, and the company's multi-layout projects have been launched one after another, covering and increasing the holding rating for the first time.
Since the company went public for 10 years, the compound growth rate of income has exceeded 30%, and the profit growth rate has exceeded 20%. It has always maintained steady development in the dye market with severe cyclical fluctuations. In recent years, with the further strong constraints of environmental protection on the dye industry, major dye towns such as northern Jiangsu have been shut down in a large area, the supply and demand pattern of the dye industry is expected to continue to optimize, and the price of dyes is expected to maintain a high boom. In addition, the company continues to lay out the digital industry, and multi-layout projects have been launched one after another, providing strong support for future growth. It is expected that the company will achieve a net profit of 1.62 million eps0.22/0.27 yuan this year and next year, corresponding to the current PE19.7/16.3 times, covering and increasing its holdings for the first time.
Risk tips: dye prices fluctuate and digital projects fall short of expectations