The actual controller was changed to Mr. Liu Xianwu. The company announced that the major shareholder Chunyun Investment and Sanxin Investment rescinded the relationship of concerted action, the controlling shareholder of the company was changed to Tongyun Investment, and the actual controller was changed to Mr. Liu Xianwu. In addition, Sanxin Investment plans to reduce its holdings of no more than 3733500 shares in the next 6 months, that is, 6.90% of its shares, 2.00% of the company's total share capital, and no more than 5413333 shares in the next 12 months, that is, 10% of its shareholdings and 2.90% of the company's total share capital.
19 years of high performance growth, the main products volume and price rise. The company issued a performance forecast that the net profit for the whole year in 2019 was about 315 million yuan, an increase of 116.96%. The performance growth was due to the successive commissioning of fund-raising projects during the reporting period, the increase in the production capacity of the company's main products, and the increase in the price of BIT series products and o-chlorobenzonitrile. The company expects to achieve a non-return net profit of about 308 million yuan in 2019, an increase of about 123.61% over the same period last year.
The fund-raising project has been put into production to greatly increase the production capacity and product structure. In the second quarter of 2019, the company added 12000 tons / year of CIT\ MIT original pharmaceutical production capacity and 2500 tons / year of BIT original pharmaceutical production capacity, achieving substantial growth in industrial fungicide business and enriching the company's product structure. With the gradual release of new production capacity, the company's sales of industrial fungicides reached 22000 tons in the first three quarters, an increase of 36.2% over the same period last year. In addition, with the production expansion project of F-nitrile intermediates put into production in July 2019, the output of F-nitrile intermediates gradually increased, which can achieve external sales in addition to meeting the company's own use, which will become another driving factor for the company's overall performance improvement.
F nitrile market is in short supply, and product prices continue to rise. Affected by the "3.21" water accident, the price of F-nitrile intermediate began to rise sharply in the second quarter of 2019, which also pushed up the price of BIT series products.
The average selling price of the company's F nitrile reached 87,000 yuan / ton in the third quarter, an increase of 8% over the second quarter and 133.5% over the same period last year. The average selling price of BIT series products reached 165,000 yuan per ton in the third quarter, an increase of 18.2% over the second quarter and 252.5% over the same period last year.
Profit forecast. We estimate that the company's net profit from 2019 to 2021 will be 315 million yuan, 358 million yuan and 390 million yuan, and the corresponding EPS will reach 1.69,1.92,2.09 yuan respectively. The company will be given 16-20 times PE in 2020, with a reasonable value range of 30.72-38.4 yuan, which is better than the market rating.
Risk hint. Major shareholders plan to reduce their holdings; industry competition intensifies; product prices fall.