Event: the company released its annual report in 2016. during the reporting period, the company achieved 8.84677 billion yuan in operating income and 340.49 million yuan in net profit belonging to shareholders of listed companies, an increase of 81.25 percent over the same period last year. At the end of the reporting period, the company's total assets were 10.59789 billion yuan, up 10.04 percent over the same period last year. The net assets belonging to shareholders of listed companies were 4.22434 billion yuan, up 8.77 percent over the same period last year.
Comments:
Blue Star Dongda polyether business continues to improve, becoming the bright spot of the company. In 2016, the company's polyether business operating income of 2.151 billion yuan, operating profit of 336 million yuan, gross profit of 15.62%, an increase of 2.37 percentage points over the previous period, has become the company's main source of profit. The target region and market of polyether polyol leading products are high resilience polyether, elastomer polyether, hard foam cross-linking agent and soft foam polyether. The company pays attention to market analysis and research on the changes of supply and demand in the downstream application market. Accurately grasp the new trend of market demand, give full play to product quality stability and industry brand advantages, take the middle and high-end product route, the target customers are high-end customers in the industry. Effectively evade the vicious competition that only pursues low prices in the low-end market. The newly developed low-odor soft foam polyether and new high-activity, low-odor and high-rebound polyether effectively make up for the deficiency of products in the high-end market, and are currently being applied to high-end customers and target markets. the brand pull effect of the high-end market will gradually appear.
The price of PVC paste resin has risen steadily, and the company's production capacity has been released. In view of the release of the production capacity of the company's new factory, all sales staff investigated and found out region-by-region, variety-by-variety and user-by-user, and worked out the implementation plan of paste resin and caustic soda production and sale. The application of international strategy for paste resin products, using the domestic advanced pallet winding film packaging form, has achieved remarkable results and has been highly recognized by the market. At the same time, seize the market opportunity arising from the changes in the relations between China and South Korea, China, Japan and the Taiwan Strait to seize the market share of imported paste resin in an all-round way. Give full play to the role of the company's domestic paste resin leader and industry leader, and firmly grasp the market situation.
With the gradual steady recovery of crude oil prices, the prosperity of the petrochemical industry has also rebounded. In 2016, the international crude oil situation fluctuated, the domestic chemical market first suppressed and then rose, and the chemical industry rebounded slowly. The company optimizes the regional structure of acrylic acid, ester and polyethylene products, seizes the market opportunity and occupies the new market by optimizing the sales network, and reduces the adverse impact of market logistics costs. In 2016, the company's petrochemical business operating income was 3.311 billion yuan, with a gross profit margin of 8.62%, an increase of 1.06% over the previous period.
Profit forecast and rating: we expect the company's operating income from 2017 to 2019 to reach 9.011 billion yuan, 9.292 billion yuan and 9.687 billion yuan respectively, an increase of 1.86%, 3.11% and 4.25% over the same period last year, and its net profit reached 368 million yuan, 369 million yuan and 374 million yuan respectively, an increase of 8.10%, 0.27% and 1.45% over the same period last year, and EPS reached 0.45,0.45 and 0.46 yuan respectively The dynamic PE corresponding to the closing price of 7.97 yuan per share on April 05, 2017 is 18 times, 18 times and 17 times respectively, maintaining the "overweight" rating.
Risk factors: crude oil prices fell, PVC paste resin and polyether polyols and other products prices fell.