Mingtai Aluminum (601677): Significant increase in profits from high value-added projects

Mingtai Aluminum (601677): Significant increase in profits from high value-added projects

Event: The company released a 2019 performance forecast, and it is estimated that the annual profit for the mother will be about 9 in 2019.

US $ 3.9 billion, an increase of approximately 4 from the same period last year.

44 trillion, an increase of about 90%.

  Non-recurring gains and losses increase profits by about 2.

2.2 billion.

The report summarizes that the company sold the R & D office building, received the sales budget and included it in non-recurring gains and losses, increasing the net profit for the period by approximately 1.

50 ppm; government subsidies, wealth management and other matters increase the profit by about 0.

7.2 billion.

After subverting 武汉夜生活网 non-recurring gains and losses, the company’s 2019 net profit attributable to shareholders of listed companies replacing non-recurring gains and losses is about 6.

160,000 yuan, an increase of about 2 from the same period last year.

22 trillion, an increase of about 56%.

  The product structure was upgraded and the production capacity was released, and the company’s performance increased rapidly.

In terms of production and sales, the company’s major projects continued to advance during the year, and more advanced equipment was put into operation. In the first half of the year, the company’s aluminum production and sales reached a record high, reaching 41 inches. We expect the company to produce and sell nearly 90 inches.

In terms of product structure, the extrusion production line 82MN, 60MN and 125MN extruder imported by SMS Germany have been installed and started trial production.Zhengzhou CRRC’s rail transit profiles can be approved to supply aluminum alloy rail car bodies to improve the profitability of rail car bodies.

In the first half of the year alone, the aluminum alloy rail car body delivered 94 knots. We expect the company to deliver 200 knots this year, contributing 0 gross profit.

600 million.

  The successful issue of convertible bonds helped the company’s next stage of development.

During the reporting period, the company successfully issued convertible bonds to raise funds18.

400 million, to save the company’s next stage of development.

According to the company’s plan, the raised funds will be used for “aluminum sheet production line upgrade project”, with a total production scale of 25 units / year, of which medium and heavy plate products2.

5 days / year, hot rolled coil products 10 days / year, cold rolled strip products 8.

5 years / year, cold-rolled sheet products 4 years / year, including: aluminum alloy pre-stretched plates, medium and heavy plates with higher requirements for production technology; aluminum plates for containers, aluminum plates for carriages, and tank trucksAluminum alloy sheets and strips for transportation, such as rolled coils; aluminum alloy building envelopes, tank cover ring materials, and aluminum alloy sheet and strip for mobile phone battery shells.

Among them, the medium and thick plate products are built-in ordinary medium and thick plate products.

The construction period of this project is 2 years. After the project is in production, it is expected to achieve revenue of 40.

800 million, net profit 3.


  Profit forecast and rating.

Maintain the company’s “overweight” rating, the company’s EPS for 2019-2021 is expected to be 1.

53 yuan, 1.

13 yuan and 1.

25 yuan, corresponding to the current sustainable PE is 7 respectively.

5 times, 10.

2 times and 9.

2 times.

  Risk warning: The profit of the investment project is less than expected, and economic growth causes changes in processing fees.