Dongfang Shenghong (000301) 2019 Third Quarterly Report Review: Q3 Results Meet Expectations Steady Progress in Refining and Chemical Projects

Dongfang Shenghong (000301) 2019 Third Quarterly Report Review: Q3 Results Meet Expectations Steady Progress in Refining and Chemical Projects

Event: On October 30, the company released the 2019 third quarter report, reporting and realizing operating income of 187.

380,000 yuan, an annual increase of 10 in the consolidated statement after the same period last year.

17%, achieving net profit attributable to mother 11.

89 ‰, an increase of 52 in ten years.

twenty four%.

The operating conditions were in line with expectations. 上海夜网论坛 The consolidated financial statements of the subsidiaries helped the company’s performance growth report. The company’s operating conditions were good. In the third quarter, Oriental Shenghong achieved net profit attributable to its mother.

9.3 billion, a year-on-year increase of 433%.

Since the beginning of this year, the company has successively expanded its extension, involving PTA, PTT fiber, refining and other fields, which has greatly expanded its industrial chain and provided a strong driving force for the company’s continued growth.

PTA, polyester fiber prices, spreads continued to decline in the third quarter, PTA, polyester fiber inventory increased, and the average price and spread of products continued to decline.

The current PTA price is 4940 yuan / ton, a decrease of 1385 yuan / ton compared to three months ago; the price difference is 654 yuan / ton, a decrease of 860 yuan / ton compared to three months ago.

In terms of polyester fibers, the current POY, FDY, and DTY prices are 7050, 7200, and 8650 yuan / ton, and the POY, FDY, and DTY price differences are 1103, 1232, and 2482 yuan / ton, all lower than three months ago.Close to historical lows.

The integration of refining and chemical projects opened up the industrial chain, and multi-channel financing demonstrated the company’s confidence that the company successfully acquired Shenghong Refining and Chemicals and replaced its business scope with Shenghong 1600 replacement / annual refining and chemical project.

After being put into production, the company will have a refining capacity of 1,600 tons / year, a PX capacity of 280 tons / year, and an ethylene capacity of 110 tons / year, which will further strengthen the company’s profitability and open up the entire upstream and downstream industrial chain.

The company continued to play an active role in the capital market and multi-channel financing helped the construction of refining and chemical projects.

On September 27, the company passed a resolution intending to borrow from a related party Shenghong (Suzhou) Group Co., Ltd. within the limit of total revenue of not more than RMB 2 billion to supplement working capital.

On September 30, the company completed the issuance of $ 1 billion non-public green bonds, which injected funds into the company’s subsequent development.

Earnings forecast and investment recommendations The company’s three quarterly results are in line with our previous forecast. Taking into account the decline in the PTA and filament boom, we have lowered the company’s profit forecast for 2019-2021 and expect the net profit for 2019-2021 to be 14.

62/14.

83/22.

49 trillion, the corresponding EPS is 0.

36/0.

37/0.

56 yuan.

Considering that the company’s future 天津夜网 refining and petrochemical projects will be put into production, to create an integrated industrial chain, there is room for breakthrough growth, and we maintain a “Buy” rating.

Risk warning: industry risk, raw material price fluctuation risk, safety and environmental protection risk.