Kuncai Technology (603826): Demand pressure remains unchanged, core competitiveness remains unchanged
The main points of the report describe the first three quarters of operating income4.
40,000 yuan, ten-year average of 0.
2%; attributable net profit 1.
20,000 yuan, 合肥夜网 ten-year average of 17.
6%, deducting non-net profit twice extended by 12.
Incident review revenue has grown steadily, and the structure upgrade logic has remained unchanged.
The first three quarters of revenue were flat for a year, or mainly due to temporary sales.
The performance of different products is different. First, the Sino-US trade friction and BASF ‘s sale of pigment departments may have a certain impact on the sales of low-end and mid-range products.Cosmetics business may maintain rapid growth.
The gross profit margin in the first three quarters was approximately 46.
7%, increase by 0 every year.
8 levels, preliminary product structure optimization; period rate is about 16.
1%, an increase of 3 per year.
7 single ones, in which sales, management, and financial rates were increased by 1.
Nine single, or mainly due to the increase in costs during the development of high-end markets.
The decrease in government subsidies and other reasons led to a decrease in other income of at least 952 million and a decrease in investment income of 487 million.
Single-quarter performance fluctuation coefficient.
The highest interest rate for single third quarter income is 5.
3%, or mainly due to sales breakthrough.
Single third quarter gross margin of 45.
8%, down by 1 every year.
Four single, rising costs or important reasons are estimated to increase or stem from the large-scale self-supply of titanium dichloride projects in the third quarter, and restructuring or stemming from the rise in prices of major raw materials such as titanium dichloride.
The rate is about 17.
4%, an increase of 7 per year.
2 units, of which sales, management, and financial rates were increased by 1.
The final single quarter net interest rate dropped from 33% in the same period last year to 24%, a single quarter jump.
The operating quality is relatively high.
Company Q1, Q2, Q3 cash ratios are 0.
91, the corresponding net cash flow amounts are 0.
57, 0.47 trillion, a great performance.
In addition, the company repaid 30 million debts, reflecting the company’s confidence in its own operating quality and the endogenous growth of cash flow in the fourth quarter and later periods.
Now is the time for high-quality deployment in the medium and long term.
In the context of trade frictions, the company has taken advantage of leading technological advantages and a better competitive landscape. The proportion of high-end products such as automobiles and cosmetics has continued to increase, confirming its logic of expansion in the high-end market; and the company’s Zhengtai Titanium Dioxide started and the Fu Shi Titanium Dioxide Project was officially launched.The company has realized self-sufficiency of main raw materials, and the logic of cost reduction is expected to be realized. The current time is the mid- to long-term high-quality allocation.
Expected 2019 and 2020 results are 1.
800 million, corresponding to an estimated 37, 25 times, maintain BUY rating.
Risk Warning: 1.
Downstream demand has grown significantly; 2.
Raw material prices have risen.