杭州桑拿Jiuli Special Material (002318) Company Research: Traditional field helps high performance and high-end product layout is worth looking forward to
Interim report overview.
From January to June 2019, the company realized operating income of 20.
99 ppm, a ten-year increase of 7.
69%; operating profit is 2.
500,000 yuan, an increase of 56 in ten years.
50%; net profit attributable to owners of the parent company is 2.
110,000 yuan, an increase of 59 in ten years.
32%, corresponding EPS is 0.
By quarter, the net profit attributable to owners of the parent company in the second quarter was 1.
390,000 yuan, and the annual change is 65.
31% / 93.
Continued high economic growth in the oil and gas sector contributed to a significant increase in net profit.
In recent years, the country has benefited from the adjustment of the country’s energy consumption structure, and the speed of oil and gas production and distribution network layout has accelerated.
Looking at the downstream demand structure, the oil and gas sector accounted for 54.
5% is still the company’s current major downstream demand area.
In terms of products, the company’s revenue of seamless pipes and welded pipes in the first half of the year was -5.
73% / 27.
69%, gross profit margins were 28.
19% / 24.
95%, rising by 3 each year.
The high boom in the oil and gas industry continued, and the company’s order was full, helping to increase production and processing fees.
As the company adopted the cost-plus pricing method, the beneficiary orders were saturated, and the product processing fees increased, but the cost increase was limited, so the company’s net profit growth was significantly larger than the revenue growth.
The fundraising and investment projects are advancing steadily.
Benchmarks for the report, including “Projects of precision pipes for nuclear power, semiconductors, medicine, instrumentation and other fields with an annual output of 5500KM,” “Projects of aerospace materials and products with an annual output of 1,000 tons,” “Construction of corrosion-resistant precision welded pipes for nuclear power heaters and condensers”The projects such as “Project” and “Large-caliber Straight Welded Pipe Production Line” are under steady progress.
After the above projects are put into production, they can directly lead to the growth of the company’s production capacity, and realize the expansion of the company’s high-end product share, improving the overall profitability of the company’s products.
The restart of nuclear power is icing on the cake.
In July 2019, at the end of 6 months of the China Nuclear Power Announcement Deadline, the Fujian Zhangzhou Nuclear Power Project affiliated to China Nuclear Power Co., Ltd. has been approved, and the nuclear power restart has already begun.
The company’s U-tube technical barriers are high. Only domestic companies and Baoyin have production qualifications. For the corresponding demand of domestic nuclear power construction, they can obtain the effect of import substitution.
If we consider 6-8 units approved each year, based on the current investment of 20 billion yuan per unit, the overall domestic market space is about 120-160 billion yuan per year.
If each steam generator follows 1.
5 megawatts, the total market space for steam generators is 9-12 trillion / year.
It is estimated that the net profit attributable to owners of the parent company for 2019-2021 will be 4.
8 billion, an annual increase of 58.
7% / 7.
8% / 11.
6%, EPS is 0.
57 yuan / 0.
62苏州夜网论坛 yuan / 0.
69 yuan, corresponding to PE is 12.
The company will continue to benefit from the high prosperity in the downstream oil and gas field, and the high saturation of traditional product orders will continue to change, resulting in stable growth.
We believe that in addition to benefiting from the high prosperity of the oil and gas sector, the company also benefited from the restart of nuclear power projects. The advantages in the nuclear power sector can enable the company to estimate a certain premium, and the current valuation has advantages, maintaining the company’s “Buy” rating.
Risk reminders: 1. Prosperity in the oil and gas sector exceeds expected risks; 2. Nuclear power restarts gradually and gradually anticipate risks; 3. Raw material prices fluctuate beyond expected risks.