Huafeng Spandex (002064): In the future, the production capacity will nearly double and the industry strength will increase significantly

Huafeng Spandex (002064): In the future, the production capacity will nearly double and the industry strength will increase significantly

I. Overview of the event The company released its 2018 annual report and achieved revenue of 44 in 2018.

3.6 billion, an annual increase of 6.

89%; Net profit attributable to shareholders of listed companies.

4.5 billion, an increase of 15 in ten years.

49%.

At the same time, the company released the first quarter report of 2019, and achieved revenue of 11 in the first quarter.

5.6 billion yuan growth15.

61%; Net profit attributable to shareholders of listed companies1.

1.1 billion, an increase of 0 in ten years.

73%.

Second, the analysis and judgment of the company’s spandex production and sales in 2018 increased by 6 times.

36% and 2.

03%, gross profit margin 22.

64%, falling by 2 every year.

18%, the current spandex industry is still relatively weak.

At the low stage of the industry, the company has ensured stable growth in revenue and net profit by reducing costs and producing more high-value-added differentiated products.

In the future, Chongqing will reach the smallest separation spandex project from 10 to 2019. Trial production is expected to be completed by August. At that time, the company’s capacity conversion will increase from 12 to 22 and the capacity will nearly double.

Due to the new equipment of the spandex project in Chongqing base and the advantage of distance from the supplier BASF, and the cost of electricity in Chongqing is relatively low, we judge that the new project will be put into operation, and the overall spandex cost of the company will gradually 天津夜网 decrease.Significantly enhanced.

The Ruian Thermal Power Plant is about to start production, and the cost is expected to further decrease. The combined heat and power project invested and built by Ruian Huafeng Thermal Power Co., Ltd. has entered the commissioning phase.

The project construction scale is two 100 t / h high-temperature and high-pressure circulating fluidized bed boilers and one CB18MW extraction turbo-generator set. After the project is put into operation, the annual power generation will be 84970MWh and the annual power generation will be 71370MWh.The steam is 342360t, the high-parameter steam is 180,000t, the average annual net profit is 29.53 million yuan, and the investment recovery period is 9.

11 years.

We judge that the transformation of the combined heat and power project into production will not only save energy but also increase the cost of the Ruian base, and the company ‘s cost advantage will be more stable.

Third, the investment proposal is expected to the company in 2019?
In 2021, the EPS will be 0.

34 yuan, 0.

41 yuan, 0.

44 yuan, corresponding to PE is 16 times, 14 times, 13 times.

The current average estimate of the chemical fiber industry is 23 times. Considering the company’s obvious cost advantage, the performance of new capacity in 19 years has promoted continuous growth and maintained a “recommended” rating.

4. Risk warning: the project progress exceeds expectations; downstream demand growth exceeds expectations.