Sun Paper (002078): Profit improvement continued to improve in the second half of the year. Paper + pulp continued to expand production to consolidate core competitiveness.
Event: The company released its 2019 Interim Report: The company achieved revenue of 107 in H1 2019.
76 ppm, a ten-year increase2.
89%, net profit attributable to mother 8.
870,000 yuan, an average of 27 in ten years.
81%, deducting non-net profit 8.
64 ppm, with a ten-year average of 28.
In Q2, the company’s revenue was 53.
25 ‰, an average of ten years.
97%, net profit attributable to mother 5.
0.6 million yuan, a ten-year average of 17.
18%, deducting non-net profit 5.
3 ppm, a ten-year average of 12.
77%, the profit margin ratio narrowed in Q1. Comments: Paper prices rose, pulp prices fell, and Q2 profit improved.
2019H1 company gross profit margin 19.
71%, a decrease of 7 per year.
21pct, net interest rate 8.
32%, a decrease of 4 per year.
55pct, the cost rate during the period is 10.
21%, an increase of 0 every year.
81pct, sales, management, R & D, and financial expense ratios are 3 respectively.
81%, respectively +0.
The company’s gross profit margin in Q2 was 21.
77%, a decrease of 4 per year.
6pct, an increase of 4 from the previous quarter.
07pct, net interest rate 9.
67%, a decrease of 2 per year.
5pct, an increase of 2 from the previous month.
The improvement in Q2 earnings was mainly due to rising paper prices and low pulp costs.
On the paper side, cultural paper’s profit is expected to improve in the second half of the year, and cardboard paper introduces the original endowment ownership ownership advantage.1) Revenue from non-alternative cultural paper in H1 2019 35.
120,000 yuan, compared with the same period of last year.
64%, gross profit margin 21.
52%, ten years -10.
07 points; Coated paper income 15.
110,000 yuan, 29 compared to the same period last year.
83%, gross profit margin 20.
06% a year -13.
66pct, cultural paper, coated paper, the main unit of increase in paper prices decreased due to the decline in paper prices, Q2 price increases will be reflected in the second half of the results, while the pulp price decline will contribute to the company’s second half profit elasticity.
2) Revenue from kraft linerboard 14.
320,000 yuan, +20 compared with the same period last year.
71%, gross margin 14.
04%, ten years +1.
2pct, the company adjusted the structure of cardboard paper products, wood pulp, semi-chemical pulp and other transfers to improve profitability; corrugated base paper revenue4.
55 ppm (commissioned in the third quarter of last year) with a gross profit margin of 14.
3) Income from household papers 3.
960,000 yuan, a year-on-year increase of +3.
23%, gross margin of 10.
32%, -5 per year.
83pct, mainly affected by market competition.
4) Laminated base paper income 4.
160,000 yuan, -3 compared with the same period last year.
68%, gross margin 19.
19% a year -8.
At the pulp end, the old uranium chemical pulp was converted to dissolving pulp, which contributed to the increase in performance.
2019H1 dissolving pulp income 18.
260,000 yuan, +26 over the same period last year.
38%, gross profit margin 21.
7% for one year.
2pc, Laos Chemical Pulp converted 30 production in the last four quarters to replace the dissolving pulp. The company 杭州桑拿 ‘s total capacity of dissolving pulp is 80, which is expected to contribute to the increase in performance;
70,000 yuan, +2.
93%, gross profit margin 23.
3%, twice -2.
The expansion of paper production capacity has consolidated the leading area, and the diversified paper types have developed steadily.
The company has recently announced the establishment of a new Guangxi subsidiary and the expansion of the integration of forestry pulp and paper and the construction of a new cultural paper project announcement 45, which continues to consolidate the advantages of raw materials, expand the capacity of cultural paper, consolidate the leading scale and increase the right to speak as the industry concentration increases.
At present, the company’s production capacity of cultural paper is 120 to (expected to 淡水桑拿网 increase by 45 inches in 2021), coated paper capacity is 100 to be in place, boxboard paper is 160 to (expected to increase by 80 feet in 2021), coated base paper is 30 to, and tissue paper has a threshold of 12,The expansion of the capacity of cultural paper contributed to the increase in performance, and the layout of various paper types drove steady development.
Promote the integration of forestry pulp and paper, and continue to consolidate the advantages of raw materials.The second phase of Laos ‘s 40-phase waste paper pulp has been trial-produced and shipped back to China in June this year for the production of corrugated board of the headquarters. The conversion company also owns 40 tons of semi-chemical pulp, 10 parts of wood pulp, 90-inch chemical pulpChemical pulp is currently being converted into 30 to dissolved pulp), and will be put into production from 20 to 2019 Q4. At the same time, it plans to build a new subsidiary in Guangxi to reserve forest land resources and transform it into “forest-paper-paper integration”.
The company’s EPS for 2019-2020 is expected to be 0.
87 yuan, corresponding to 9 for 2019-2020 PE.
68 times, taking into account the increase in paper prices, the profit repair brought by the decline in pulp prices, the expansion of paper business to contribute to the increase in performance, the increase in pulp ratio brings cost advantages, and maintain a “buy” rating.
Risk warning: paper prices fluctuate sharply, and raw material prices fluctuate sharply.