Luxi Chemical (000830): Affected by the decline in product prices, the company’s first half performance changes

Luxi Chemical (000830): Affected by the decline in product prices, the company’s first half performance changes
Core point of view The company’s 2019 interim results are in line with expectations The company’s 2019H1 revenue will be 98.600 million, down 7 a year.03%; net profit attributable to mother 7.63 ppm, with a ten-year average of 55.63%; net profit deducted from non-attributed mothers7.49 trillion, an annual decline of 56.16%, of which in the second quarter of 2019, a single quarter realized revenue of 48.900 million, down 14 a year.37%; net profit attributable to mothers4.10,000 yuan, down 55 every year.54%, an increase of 10 from the previous month.94%, performance was in line with expectations.  The company’s product industry chain is complete, but affected by the sluggish demand, resulting in a sharp decline in gross profit margin. The company’s 都市夜网 business is divided into three stages of development. From a forward-looking layout, the company transitions from a fertilizer-based company to a large chemical industry.Since 2014, it has developed into a chemical enterprise mainly based on chemical products and new chemical materials, forming a complete industrial chain of coal chemical industry, salt chemical industry, fluorine silicon chemical industry and new material chemical industry.  According to the company’s 19-year interim report, the second-phase nylon 6 system, the continued construction of formic acid, and the cycloalkyl ketone production project have been put into operation. The trial run of the tetrachloroethylene project has further optimized the industrial structure in the park.However, generally affected by the sluggish macroeconomic and downstream demand, according 杭州桑拿洗浴会所 to Baichuan’s surplus, the prices of the company’s caustic soda, formic acid, DMC and other products fell to varying degrees, resulting in the gross profit margins of the new chemical materials segment and the basic chemical segment falling simultaneously.87 PCT and 4.83 PCT.  The market prosperity of some chemical and fertilizer products is expected to maintain hydrogen peroxide from 2019, and the price of products will gradually rise; the high profit of caprolactam will continue to increase the company’s output; stricter environmental protection will lead to significant de-capacity in the urea industry, and prices will remain high.  Profit forecast: Based on: 1.Chemical product launch progress; 2.The company’s chemical products profitability in the past 3 years; expected 19?The net profit attributable to the mother for 21 years is 20.3, 28.8 and 32.7 trillion, corresponding to 19?The 21-year PE dynamic estimate is 7, 5, and 4 times. The industry’s comparable company’s 19-year dynamic PE average is 15 times. Careful consideration is given to the company’s 19-year dynamic PE at 10 times, and the company’s reasonable value is 13.9 yuan / share, give “Buy” rating.  Risk Warning: 1.Expected launch of new products; 2.The product price has been adjusted significantly; 3.Capital expenditure is relatively pressured; 4.Macroeconomics was lower than expected.