Xinnong shares (002942)： Interim report results slightly exceeded expectations bullish expectations
Xinnong shares (002942): Interim report results slightly exceeded expectations bullish expectations
Performance summary: The company achieved operating income in the first half of 20195.
40,000 yuan, an increase of 3 in ten years.
2%; net profit attributable to mother 1.
0 million yuan, an increase of 18 in ten years.
6%; EPS 0.
The company is a small and beautiful pesticide integrated production enterprise.
R & D, production and sales of Xinnong’s main pesticides, chemical pesticides, formulations and fine chemical intermediates. The main products are triazophos, chlorpyrifos, zinc thiazole and other pharmaceuticals and formulation products, as well as chloride, N- (1-Styrylpropyl) -3,4-dimethylmethylaniline, benzoic acid and benzoate, 1,3-cyclohexanedione and other intermediate products.
At present, the company has a production capacity of 6,300 tons of chlorpyrifos, 3200 tons of triazophos and 1200 tons of zinc thiazole.
Interim results were slightly higher than expected, mainly due to the volume of high-margin varieties in preparation products.
The company’s second-quarter performance slightly exceeded our previous expectations. In terms of products, the revenue and gross profit margin of intermediate and original drugs did not change significantly, while the company’s preparation revenue increased by 22.
2%, gross margin increased by 6 in the short term.
4 units, the company’s 北京夜生活网 fixed assets at the end of the period increased by 31 compared to the beginning of the period.
8% (mainly due to the newly purchased office building and incinerator renovation project and the completion and implementation of the thiazole zinc expansion project), we judge that the company’s thiazole zinc product volume in the second quarter, thereby improving the overall gross profit margin (the second quarter gross profit margin) 37.
1%, gross margin of 34 in the first quarter.
The fund-raising projects have been advanced in an orderly manner.
The company’s investment projects are: an annual output of 1,000 tons of pyraclostrobin and a re-production of 430 tons of sodium chloride, an annual output of 6,600 tons of environmentally-friendly water-based formulations production lines and supporting logistics projects, and a hydrogenation workshop technical transformation project (annual output4000 tons of N- (1-tolyl) -3,4-dimethylaniline, 2500 tons of 1,3-cyclohexanedione, 500 tons of N-substituted-4-fluoroaniline, supporting 600Nm3 / h hydrogenationWorkshop technical renovation project), marketing service system construction project.
In the first half of 2019, the fundraising project has cumulatively expanded the fundraising budget to 78.69 million yuan, and the investment progress is 20.
Among them, the annual production of 6,600 tons of environmentally-friendly water-based preparation production lines and supporting logistics projects, the main project of the first phase of the project with an annual output of 2,800 tons of fungicide (suspending agent) production line and supporting environmental protection facilities have been constructed and put into trial production;The mycophenolate project was constructed in phases according to the implementation plan. The first phase of the project is progressing smoothly. It is expected to be completed and put into trial production from the end of 2019 to the beginning of 2020.
Earnings forecasts and investment advice.
The EPS for 2019-2021 is expected to be 1.
86 yuan, 2.
24 yuan, 2.
63 yuan, the net profit attributable to the mother in the next three years has a compound length of 35%.
Taking into account the company’s gradual increase in investment and production capacity, performance release, given 17 times the 2019 estimate, the target price of 31.
62 yuan, given a “buy” rating.
Risk reminders: risks of raw material price fluctuations, production safety risks, risks of preferential income policy changes, exchange rates, risks of fluctuations in gross profit margins, risks of trade frictions, risks of raising projects to put into production and reaching production schedules, or risk of falling short of expectations