Xinhecheng (002001): VE pattern reshapes, VA boom cycle rises

Xinhecheng (002001): VE pattern reshapes, VA boom cycle rises

The incident company issued an interim report, which reported a real revenue 38.

67 ppm, a reduction of 16 per year.


Realized net profit attributable to mother 11.

56 ‰, a decrease of 43 per year.


In the short-term, the investment report ‘s results have shown a significant improvement in Q2 from the previous quarter. The short-term results are mainly due to the force majeure of overseas 深圳桑拿网 installations at the end of 17, which led to a 18-year high VA / VE boom.Back down.

The price of VA / VE in Q2 2019 is picking up, driving the company’s performance to improve.

In addition, the one-month PPS full-load production that was newly put into operation in October 2018 was the leader in the improvement of the new materials business.

VA boom cycle upwards, VE layout reshaped.

Considering that BASF’s European production line can only be operated at low load before 2020, production will need to be suspended and brought online in the second half of 2020. The boom of VA can replace time.

Due to the integration of DSM and Nent Technology, the VE industry will return to the oligopoly pattern.

In addition, during the upgrade of the DSM production line by DSM, the global VE supply was still tight, and the positive situation in the medium term was clear.

The company currently has 2000 tons of VA oil, 2-block VE oil production capacity, elastic bonding.

The cracks in construction are expected to gradually solidify in the first half of 20 years.

Currently under construction63.

350,000 yuan, Shandong 2 entry nutrition project, Heilongjiang Fermentation Project Phase I civil construction is basically completed, and gradually entered the test phase.

Methionine Phase II 10 Initial Solid Eggs is scheduled to start production in the first half of 2020.

The second phase of employee stock ownership has been implemented.

As of May 8, 2019, the second phase of the employee shareholding plan has been completed, and the total amount of 1,185 shares purchased by the secondary market through bidding transactions.

510,000 shares with a turnover of 2.

20,000 yuan, the average transaction price is about 16.

98 yuan / share.

Earnings forecast and investment grade: What do we expect the company to do in 2019?
In 2021, the operating income will be 90.

5 billion, 120.

48 ppm, 158.

8.7 billion, net profit attributable to mothers was 26.

470,000 yuan, 33.

6.1 billion, 40.

8 billion, with EPS of 1.

23 yuan, 1,56 yuan, 1.

90 yuan, the current corresponding PE is expected to be 19X, 15X, 12X.

Considering that the VA boom cycle is up and the VE pattern is reshaped, the company’s future profitability is expected to continue to grow. We maintain our “Buy” rating on the company.

Risk Warning: The domestic pig farming recovery progress is less than expected, resulting in weak demand for vitamin products.