Long Mang Baili (002601) 2019 Third Quarterly Report Review: Titanium Dioxide Leader’s Beautiful Performance, Pessimistic Expectations of Real Estate and Lifting of Banning to Suppress Revenue

Long Mang Baili (002601) 2019 Third Quarterly Report Review: Titanium Dioxide Leader’s Beautiful Performance, Pessimistic Expectations of Real Estate and Lifting of Banning to Suppress Revenue
Event: The company released the third quarter report of 2019, and achieved operating income of 82 in the first three quarters.71 ppm, +3 for ten years.08%; net profit attributable to mother 20.6.6 billion, previously +4.84%; basic return 1.04 yuan, +6 per year.12% in the third quarter of a single quarter to achieve operating income2.91 trillion, +5 for ten years.25%, +13 from the previous quarter.0%, net profit attributable to mother 7.960,000 yuan, +26 for ten years.41, + 23% MoM, 0 basic returns.4 yuan, + 29% in the past, + 23% MoM. Both revenue and profit increased, leading the industry’s competitive advantage.From the beginning to the present, the domestic titanium dioxide market is operating steadily, the downstream demand is limited, the supply of upstream titanium ore is tight, the price of raw materials continues to rise, and companies with core competitiveness such as technology and cost have benefited significantly.In the high base of 2018, the company achieved double growth in operating income and net profit attributable to mothers in the first three quarters and Q3 single quarter. The gross profit margin and net profit margin of Q3 were 44.8%, 27.64%, ten years +1.16%, +4.57%.The company raised the titanium dioxide powder of each model four times on February 13th, March 7th, August 3rd, and September 3rd, fully showing the influence of industry leaders on the market. 20 The annual trial production capacity of the chlorination method is successful, expanding the leading edge of technology.After years of technological exploration and accumulation in the first phase of the chlorination method, one of the production lines of the company’s second-phase chlorination method with a capacity of 20 to / year has been successfully put into operation. The system’s operating time and load have repeatedly hit record highs, and it will gradually contribute to the increase of titanium dioxide and performance.Another production 佛山桑拿网 line was originally planned to be commissioned at the end of October, and the production capacity is highly certain.The successful commissioning of the single-line high-capacity chlorination method will not only help the company achieve better performance, but also lead the mainstream development direction of China’s titanium dioxide. Xinli Titanium’s resumption of production is coming soon.Xinli Titanium has only 6 concentrations / year of chlorinated titanium dioxide production capacity, 1 ton / year of sponge titanium production capacity and 8 ton / year of high titanium slag production capacity.The resumption of production is progressing smoothly. At present, high titanium slag and sponge titanium have been resumed. Titanium dioxide is expected to resume production in November, which will become a new growth point of the company’s performance and the business area will be further expanded. Downstream real estate has strength.Although the forward-looking indicators such as the area of purchased land alternate, the current real estate investment and construction performance is good.In the first three quarters of 2019, the previous real estate development investment quota exceeded 10 years.5%, after deducting the land acquisition fee, the real estate investment is completed, every +6.6%, an increase of 0 from the previous month.81 buildings; cumulative floor area of buildings exceeds +8.7%, keep strength. Maintain “Buy” rating.It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 25 respectively.53/35.52/43.190,000 yuan, corresponding to EPS 1.26/1.75/2.13 yuan, PE 9/7/6 times, maintain “Buy” rating. Risk reminder: the risk of falling titanium dioxide prices, the risk of new production capacity being less than expected, and the risk of lifting the ban.