Events:
According to the company's annual report, the operating income in 2016 was 1.665 billion yuan, an increase of 9.64 percent over the same period last year; the net profit belonging to shareholders of listed companies was 90.83 million yuan, down 80.15 percent from the same period last year; and the net profit after deduction belonging to shareholders of listed companies was 93.21 million yuan, an increase of 434.74 percent year-on-year and earnings per share of 0.3 yuan. The company plans to pay a cash dividend of 1.2 yuan for every 10 shares.
Conclusion:
In the short term, the viscose fiber industry where the company is located is booming, and the company's performance is more flexible (viscose staple fiber increases by 1000 yuan / ton, EPS thickens by about 0.3 yuan), the profit is expected to increase significantly; in the long run, capacity expansion and state-owned enterprise reform and transformation bring greater growth space for the company. The company is expected to achieve earnings per share of 0.87 yuan, 1.04 yuan and 1.19 yuan respectively from 2017 to 2019, with a "overweight" rating.
Text:
The main business performance has increased significantly. In 2016, the company's net profit after deduction increased significantly compared with the same period last year, mainly due to the upswing of viscose staple fiber. For the whole year, the production and sales of viscose staple fiber were 79200 tons and 82300 tons respectively, an increase of 6% and 10% respectively over the same period last year. The revenue of staple fiber business was 969 million yuan, an increase of 24.3% over the same period last year. The gross profit margin was 12.1%, an increase of 4.31% over the same period last year. The filament business declined, with revenue of 460 million yuan, down 9.6% from the same period last year, and gross profit margin of 7.45%, down 8.74% from the same period last year. The water supply business remained stable, with an average daily water supply of 130000 tons and a slight increase in profits.
Viscose staple fiber industry is expected to continue to rise. Driven by strong domestic demand and export growth, the price and price difference of viscose staple fiber continue to expand, and the market price of viscose staple fiber has risen from about 13000 yuan / ton at the beginning of 2016 to the current 17400 yuan / ton. In 2016, the domestic production capacity of viscose staple fiber was 3.77 million tons, with an output of 3.41 million tons, an increase of 11% over the same period last year. The industry has a high operating rate, low inventory, apparent consumption of 3.2-3.3 million tons, and apparent consumption growth of more than 10% in the past few years.
The new production capacity in 2017-2018 is relatively small, only Jiangxi Saideli (170000 tons, 2017) and Sanyou Chemical (200000 tons, 2018), the industry supply and demand is tight, the industry is expected to maintain high demeanor.
We will increase production and enhance competitiveness, and the reform of state-owned enterprises is worth looking forward to. The company has a production capacity of 80,000 tons of viscose staple fiber and 2.0 million tons of viscose filament per year. At the same time, Lanjing (Nanjing), which is a shareholder of the company, has a production capacity of 160000 tons of viscose staple fiber. The company plans to invest an additional 1.5 billion yuan to build 160,000 tons of viscose staple fiber per year (80,000 tons of high brightness viscose staple fiber, 50,000 tons of high strength viscose staple fiber and 30,000 tons of antibacterial bamboo fiber). After completion, the production capacity of viscose staple fiber will reach 240000 tons, and the market competitiveness will be further enhanced. The actual controller of the company is Nanjing SASAC, which proposes to strengthen the main industry while realizing strategic transformation based on the main industry of viscose fiber, increase the intensity of capital operation, and quickly open up new industries by means of targeted additional issuance. By 2020, the output value of the new industry will account for 50%, and the reform and transformation is worth looking forward to.