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Long Mang Baili (002601): Titanium dioxide sales increase, iron ore prices rise, Q3 performance exceeds expectations

Long Mang Baili (002601): Titanium dioxide sales increase, iron ore prices rise, Q3 performance exceeds expectations
Company announcement: The company achieved operating income of 83 in the first three 杭州桑拿 quarters.180,000 yuan (+2 compared with the same period last year).6%), operating income 82.710,000 yuan (+3 compared with the same period last year).08%), achieving net profit attributable to mother 20.6.6 billion (+ 4% year-on-year.84%); of which total operating income in the third quarter was 29.3.4 billion (+5 year-on-year.67%, +12.99%), operating income 29.100,000 yuan (+5 compared with the same period last year).25% quarter-on-quarter +12.60%), realizing net profit attributable to mother 7.RMB 960,000 (+26 compared with the same period last year).41%, +23.15%), the performance exceeded market expectations.The company’s board of directors was established to pass the “Profit Plan for the Third Quarter of 2019”, with the company’s total share capital on September 30, 201920.With 3.2 billion shares as the base, a cash dividend of 1 for every 10 shares is distributed to all shareholders.5 yuan, a total of 3 cash dividends were distributed.0.5 billion. Titanium dioxide sales increased, iron ore volume and price rose to increase profits.Since late August, the titanium dioxide industry has gradually entered the peak season replenishment stage. The company raised the titanium dioxide price twice in mid-August and early September. According to our price tracking, the average sales price of titanium dioxide for Q3 is about 14,200 yuan / ton(Including tax), the market price of titanium concentrate is about 1220 yuan / ton, the profit margin has increased slightly, and the sales volume of Q3 has also increased to a certain extent. We estimate that the contribution of the titanium dioxide sector will increase by about 0 from the previous month.800 million; quarter Q3 iron ore prices in the Panxi area rose, the average selling price was around 400 yuan, the company’s iron ore mining and production capacity has been fully released, we estimate that the iron ore fines sector’s contribution to profit increased by about 1 month on month.10,000 yuan.Q3’s sales gross margin was 44.80%, increase by 1 every year.16 units, an increase of 1 from the previous quarter.36 units.In terms of expenses, the company’s sales expenses and research and development expenses all declined, and the total expenses during Q3.710,000 yuan, down 0 from Q2.310,000 yuan, during which the expense ratio dropped to 12.8%. Yunnan Xinli plant resumed production one after another, and the output of the second phase of chlorination method gradually increased.As of the end of September, the company’s construction in progress increased to 22 trillion, an increase of about 4 trillion compared with the previous Q2, mainly due to the investment in the project of resuming production in Yunnan Xinli. Yunnan Xinli has 6 cases of chlorinated titanium dioxide and 10,000 tons of sponge.Titanium and supporting 8 reached high titanium slag production capacity. After the completion of the merger and acquisition, the company immediately resumed production. By the beginning of October, the production capacity of high titanium slag and sponge titanium had basically been opened, and the progress was in line with expectations.At present, the company is the only company in China to design, install, start up and operate a single set of chlorinated titanium dioxide production line for 10 years / year. It has merged and acquired Yunnan Xinlili Company to control the diffusion of chlorination technology and achieve industrial chain extensionTo grasp the development potential of high-end titanium materials.The second phase of the company’s chlorination method was put into trial operation on the first production line in June. The continuous operating time and load of the system reached new highs repeatedly, and the output was gradually increasing. Titanium raw materials support the industry’s prosperity, and the supporting raw materials deepen the company’s moat.In 2019, the supply of high-grade titanium raw materials in the world continues to be tight. The recent rise in the price of titanium concentrates has continuously confirmed our continuous judgment on the prosperity of the titanium ore support industry.We judge that by 2022, the output shrinkage of titanium raw materials will still be greater than the supplementary increase, and the titanium dioxide of the chlorination method has the cumulative cost support. In order to realize the matching of chloride 南京桑拿网 raw materials, the company has completed 15 initial titanium concentrate upgrading and transformation projects in Jiaozuo. The innovative engineering construction project will help the company to ensure the stable supply of chloride raw materials, enhance the comprehensive utilization value of mineral resources, and enhanceCompany profitability and core competitiveness. Investment rating and estimation: Maintain the company’s profit forecast for 2019-2021, and expect the company to achieve net profit attributable to mothers in 2019-2021.86, 35.57, 43.82 ppm, corresponding to PE of 9X, 7X, 6X, maintaining the “overweight” level.