The results increased significantly in the third quarter, EPS0.26 yuan: the company announced that revenue in the first three quarters of 2018 was 4.363 billion yuan, an increase of 3.85%, a net profit of 651 million yuan, a decrease of 2.81%, a deduction of 576 million yuan, an increase of 3.64%, and a net cash flow of 918 million yuan, down 11.19%. The single Q3 company achieved a revenue of 1.585 billion yuan, an increase of 14.06%, an increase of 12.50% over the previous month; and a net profit of 324 million yuan, an increase of 18.38%, a month-on-month increase of 54.90%, and a substantial increase in EPS0.26 yuan per quarter, both year-on-year and month-on-month.
The gross profit margin rebounded month-on-month, and the rate was stable during the period: the company's single-quarter performance increased significantly compared with the same period last year and month-on-month, and the overall gross profit margin increased to 38.26%, mainly due to the fact that the company's chemical business production maintained a high load, while the oil distribution price center was about 85 US dollars per barrel in the third quarter, polyolefin prices strongly maintained and led the company's ethylene, propylene and downstream butanol prices up, and the price gap between products and raw materials widened. In terms of products, the average price of ethylene CFR Q3 in Northeast Asia increased by 2.43%, the average price of Q3 in Jiangsu Propylene market increased by 9.94%, the average price of Q3 in East China of n-butanol decreased by 0.73%, and the average price of Q3 of octanol in East China increased by 6.78%. In terms of raw materials, the price of Q5500 thermal coal in Qinhuangdao was unchanged in the third quarter, with an average price of about 582 yuan / ton. From the point of view of the period expense rate, the company's cost control basically remained stable, with Q3 sales rate of 1.73%, month-on-month increase of 0.03pct, management rate (including R & D expenses) and financial rate of 11.73% and 2.35%, respectively, 0.04% and 0.05pct, respectively, and period rate 15.81%, up 0.12% from the previous month.
The 600000-ton MTO project has been steadily advanced, and the liquid crystal display material has been fully put into production: during the reporting period, the 600000-ton MTO project of Nanjing Chengzhi Clean Energy has completed the installation of the civil foundation and the main steel structure, the construction of the main structure is still under construction, the dynamic and static equipment are arriving and installed one after another, the welding of process pipes is in progress, and the electric instrument bridge bracket is partially completed. Under the influence of geopolitics, the international oil price has entered the middle and high stage, the coal chemical industry has ushered in a prosperous period, Nanjing Chengzhi has the advantages of location and park, and the profits of industrial gas and olefin products can be expected. In addition, another source of profit for the company's liquid crystal materials business, Chengzhi Yonghua invested in the construction of TFT-LCD high-generation line liquid crystal materials project has reached the use of all solid state during the reporting period, double main business-driven company will usher in new development.
Maintain the "overweight" rating: considering the improvement of the chemical business profit level of the company under the high oil price, raise the company's 2018-2020 profit forecast, the estimated net profit is 9.93,10.82,1.154 billion yuan respectively (the previous is 7.67,8.69,881 million yuan), corresponding to EPS is 0.79,0.86,0.92 yuan respectively, maintain the "overweight" rating.
Risk tips: the risk of oil price fluctuations, rising raw material prices, the promotion of new projects is not as expected.
