In 2019, the company achieved operating income of 809 million yuan, an increase of 26.52% over the same period last year; the net profit attributed to shareholders of listed companies was 72 million yuan, up 30.51% from the same period last year; and the net profit after deducting non-return was 52 million yuan, an increase of 143.01% over the same period last year, and the performance was slightly lower than expected. In the first quarter of 2020, the company achieved revenue of 112 million yuan, down 47.84% from the same period last year, and realized a net profit of 6 million yuan, down 82.57% from the same period last year. Affected by COVID-19 's epidemic, the company's performance declined sharply in the first quarter.
The price of raw materials has come down, and the ink can be put into production. With the normalization of environmental protection, the price of the company's main raw materials gradually fell, and the revenue of printing ink was 285 million yuan, down 5.04% from the same period last year, and the gross profit margin was 37.25% (year-on-year + 3.54pct). 8000 tons of new ink production capacity has been completed, entering the trial production stage, with the resumption of work and production, as well as the gradual release of investment capacity, the company's ink series products will usher in another round of growth. The company is currently in the stage of promotion and trial production of LowDk/Df special oil coating for 5G communications, and is expected to make a breakthrough with the acceleration of 5G new infrastructure.
Paint increased significantly, Jiangsu Hongtai over-fulfilled the performance commitment. In 2019, the company's paint products achieved revenue of 478 million yuan, an increase of 45.41% over the same period last year, and a gross profit margin of 44.17% (+ 2.38%). Jiangsu Hongtai, the main operator of coatings, achieved a net profit of 62.58 million yuan (+ 55.29%) in 2019, exceeding the promised profit. On the one hand, Jiangsu Hongtai continues to increase cooperation with high-end mobile phone brands, on the other hand, it gradually opens up markets in other areas, and is expected to expand in automotive, home appliances and other fields in the future.
Enter the iron printing ink market, looking forward to a breakthrough in photoresist. UV printing ink series as an alternative to the traditional solvent-based environmental protection products, mainly used in chemical packaging, food packaging, electronic products protective film and other fields, there is a huge market prospect in the future. In the first quarter of 2020, the company established a subsidiary Jiangyin Guangqing, the current products are in the market promotion stage, UV printing iron ink is expected to become a new performance growth point of the company. The first batch of photoresist has been successfully tested by customers in Taiwan, China, and the performance and quality of the products can meet the needs of customers. we have entered the preparation of technology transfer and the second batch of R & D products, and look forward to a breakthrough in photoresist.
Downgrade profit forecast, downgrade investment rating: affected by COVID-19 epidemic, downgrade profit forecast, the company is expected to achieve 2020-2022 return to the mother of net profit of 0.76 billion yuan, corresponding to PE is 37-26-20 times, downgraded to "overweight" rating.
Risk hint: the risk of falling demand, falling product prices, and less-than-expected investment in new capacity.