Binhua Co. (601678): New projects with expanded performance open up development space

Binhua 成都桑拿网 Co. (601678): New projects with expanded performance open up development space

The company achieved revenue of 30 in the first half of 2019.

90 trillion, down -8 a year.

46%; net profit attributable to mothers2.

50 trillion, down -45 a year.


The company achieved revenue of 15 in the second quarter.

1.6 billion, down 4 a year.

54%, net profit attributable to mothers1.

10 yuan, down 43 each year.


Affected by the market environment, the company’s main products, caustic soda, and epoxy resin prices continued to decline compared to the same period last year. The raw material raw salt, bill prices were relatively strong, and cost pressures increased, resulting in a decline in profitability.

The prices of basic chemicals dropped at a high level.

In the first half of the year, the company’s PO 杭州夜网论坛 achieved sales of 11.

32 digits (+3.

28%), with an average of 8518 formaldehyde.

17 yuan / ton (-16.

84%); Caustic soda (one hundred percent) achieved sales of 36.

18 digits (+8.

91%), with an average of 2589.

28 yuan / ton (-24.


The company’s main raw materials purchase raw salt 212.

76 yuan / ton (0.

99%), raw coal 595.

75 yuan / ton (-4.

00%), propylene 6465.

82 yuan / ton (-8.


The prices of the company’s main products fell. Although the prices of raw materials also declined, the scope was limited, and the company’s overall profitability declined.

The C3, C4 project is advancing steadily: The company plans to use cash1 a few days ago.

07 billion shares acquired 60% of Binhua New Materials held by Mizuki Qingyang. After the transaction is completed, the company will hold 100% of Binhua New Materials.

At the same time, the convertible bonds to be issued will raise US $ 2.4 billion to invest in the “carbon three carbon four comprehensive utilization project (Phase 1)”, “interchangeable dehydrogenation equipment with an annual output of 1960s” and “replaces butane with an annual output of 80Multiple “chemical devices” are expected to open a new chapter in the company’s development.

The development of hydrogen energy is smooth: the company intends to increase the capital of hydrogen energy companies in cash.

5 billion yuan, after the completion of the capital increase will hold hydrogen energy company 97.

5% equity is mainly used for investment and industry mergers and acquisitions.

The hydrogen energy project invested and constructed by Hydrogen Energy has successfully completed the entire process, and on May 8, 2019, the refined air was charged into the long tube car for the first time to achieve the stage goal of 1000Nm3 / h of hydrogen filling.

An important breakthrough in hydrofluoric acid: The recent trade conflict between Japan and South Korea provided a good opportunity for the development of domestic electronic materials, accelerating the cooperation between South Korean companies and Benhua Group in electronic-grade hydrofluoric acid.Batch order.

At the same time, the production of epoxy resin chlorine will bring new profit points to the company. Lowered profit forecast: The price of the company’s products has dropped, so the profit forecast has been lowered.



470,000 yuan, corresponding to PE is 12/11/10 times, given the “overweight” rating.

Risk reminder: the risk of lower product prices and less-than-expected increase in production capacity.