Lier Chemical (002258) 2019 performance newsletter comments: Product price declines and other dragging performance indicate that long-term stability and increase in Guang’an base process optimization will increase competitiveness
Event: Lier Chemical released its 2019 performance report, reporting and realizing operating income41.
64 ppm, a 10-year increase3.
40%; realized operating profit 4.
32 ppm, a decrease of 43 per year.
70%; net profit attributable to mother 3.
11 trillion, down 46 a year.
14%, press the latest 5.
Based on the total share capital of 2.4 billion shares, it has realized diluted earnings.
Maintain the rating of “Prudent Overweight”.
Lier Chemical will vigorously explore domestic and foreign markets in 2019, actively promote the commissioning of the Guang’an base and guarantee production and operation. The company’s operating income has increased steadily for many years.
However, due to the increase in the prices of major products, the rise in prices of some raw materials, the increase in the cost of expanding international market registrations, and the increase in product research and development, the company’s performance has shifted.
Lier’s chemical products are rich in structure, covering herbicides, fungicides, insecticides, a series of more than 40 kinds of original drugs, more than 100 kinds of preparations and some chemical intermediates.
The company’s glufosinal, formaldehyde, and scopolamine are the first in the country in terms of production and sales, and the long-term outlook is positive.
Affected by fierce competition in the industry, the price of glufosinate has recently fluctuated, causing disturbance to the company’s operations.
The company has solved major engineering technical problems such as format reaction control and amplification in glufosinate formaldehyde production. It has comprehensively mastered key 淡水桑拿网 synthesis technologies, has a high degree of integration in the production process, and has outstanding cost and scale advantages.
The company ‘s Guang’an 36,000-ton pesticide and fine chemicals project has steadily advanced, and plans to invest about 2 billion US dollars in Jingzhou, Hubei to set up a new company, which is an important growth of the company’s future performance and will provide long-term growth for the company.
We adjusted the company’s 2019 EPS forecast to 0.
59 yuan, maintaining the EPS of 0 in 2020 and 2021.
77 and 1.
The forecast of 02 yuan maintains the investment rating of “prudent increase in holdings”.
Risk reminders: The project construction progress is not up to expectations; raw material prices fluctuate sharply; downstream demand is sluggish; competition in the industry is intensifying.