Events:
The company released its 2017 semi-annual report, with operating income of 1.258 billion yuan, an increase of 78.02% over the same period last year, a net profit of 60.92 million yuan, an increase of 330.3% over the same period last year, and basic earnings per share of 0.04 yuan, an increase of 300% over the same period last year.
Comments:
1. Coal chemical industry warms up, product prices rise, and gross profit margin increases.
In the first half of the year, the price of coke rose significantly, from about 1500 yuan at the beginning of the year to about 2500 yuan at present. In the same period in 2016, the average price of coke was less than 1000 yuan, which was significantly higher than the same period last year. As the leader of the new coal chemical industry in Heilongjiang Province, the company is currently the largest independent coking enterprise and the largest methanol production enterprise in Northeast China, obviously benefiting from the warming of the coal chemical industry and the rise in the prices of related products. The company's operating income increased by 78.02% over the same period last year, operating cash flow increased by 162.91% over the same period last year, accounts receivable decreased, and operating conditions continued to improve.
Since last year's Q3, the gross profit margin has increased significantly, and this year's Q2 single-quarter gross profit margin reached 29.83%.
2. Covering "coal, electricity, chemical, materials, heat and oil", the modern coal chemical industry, which has obvious advantages in circular economy, can not only provide clean energy products such as oil and natural gas, but also extend the development of petroleum substitute products such as olefins and aromatics. The company maximizes the utilization of coal resources through a complete industrial chain of circular economy, covering many industries such as "coal, electricity, chemical, materials, heat, oil" and so on. The company's 300000 tons / year coal tar deep processing and 50, 000 tons / year needle coke project, the coal production 100000 tons / year aromatics project and the coke production 300000 tons / year stable light hydrocarbon (transformation and upgrading) project built by Shuangyashanlong Coal Tiantai Coal Chemical Co., Ltd., will further improve the industrial chain and realize the diversification, high value and cleanliness of products, which will contribute to the further reduction of product costs and the improvement of product added value. Upgrade to coal-based clean energy products, the company's performance flexibility will be significantly expanded.
3. The new material business is worth looking forward to.
Relying on the rich local graphite resources, the company actively promotes the graphite and graphite deep processing business with graphene as the core, upgrading from the coal chemical industry to the new material industry, and further extending the industrial chain. The 100-ton graphite project was completed for trial production on January 4, 2017, and graphene products were successfully produced. The company's "Baotailong high-end graphite deep processing characteristic industrial cluster"
The project will lead the industry to develop in the direction of deep processing of high-tech graphite. Graphene, as a new material with advanced performance, has a very broad market. after the implementation of related projects, the company's industrial structure will be more optimized and its competitiveness will be further enhanced.
4. Investment suggestions
We estimate that the net profits belonging to shareholders of listed companies from 2017 to 2019 are 105 million yuan, 134 million yuan and 164 million yuan respectively, corresponding to 0.08,0.10 and 0.12 yuan EPS respectively; corresponding to the current stock price of 9.74 yuan, PE is 127,100 and 81 times respectively, covering for the first time and not rating for the time being.
Risk hint: international oil prices, chemical products fall risk, graphite business progress is not as expected risk.
