Sun Paper (002078) 2019 Third Quarterly Report Review: Performance Exceeds Expectations, Cultural Paper Profits Brightly, New Production Capacity Gradually Begins
Note: The operating income of Q1 to Q3 2019 was 164.
10,000 yuan, an increase of ten years.
81%; realized net profit attributable to mother 14.
8.5 billion per year 17.
57%; net profit after deduction of non-return to mother14.
580,000 yuan, a ten-year average of 18.
2019Q3 achieved operating income of 56.
25 ppm, with a ten-year average of 0.
2%; achieve net profit attributable to mother 5.
98 ppm, a ten-year increase4.
37%; net profit after deduction is returned to mother 5.
95 ppm, a ten-year increase4.
Comment: Increasing production capacity is gradually unfolding, and the volume expansion year is coming. Laos, Guangxi, and the Headquarters are all working together: As of 2019, the company’s construction projects in Q3 are 24.
07 million yuan, an annual increase of 277.
98%, firstly due to the increase in payment of 45 special cultural paper projects under construction by the company, 120 paper mills in Laos, natural high-yield biomass fiber projects, and alkali recovery and upgrading projects.
The production capacity of Guangxi has begun construction, and the scale layout is next city.
On October 16, 2019, the Guangxi Zhuang Autonomous Region’s major projects were started intensively and the key project of Beihai City was started, as well as the ceremony of Guangxi Sun Paper’s annual output of 350 and the Linxi Pulp and Paper integration project at the main venue of Beihai and Tieshan Port.Differentiate the venue’s grand antiques.
The total investment of the project is 22.8 billion yuan, and it will be constructed in two phases. After it is put into production, it is expected to realize a profit and tax of 3.5 billion yuan. It will directly create more than 3,200 jobs and indirectly create more than 20,000 jobs.
With 青岛夜网 the integration of Laos 80 cardboard box paper, Guangxi 350 and forest pulp and paper integration, the headquarters 45 introduced cultural paper and supporting wood pulp into production, the company’s production capacity layout is perfect, the cost of supplementary production capacity continues to decrease, and the company’s average yield is expected to rise.
Q3’s single quarter earnings improved significantly, and cultural paper price increases helped boost the economy: Q1-Q3 gross profit margin levels in 201921.
13%, down 4 each year.
47 points, mainly due to the gross profit replenishment of pulp and paper products; net interest rate level 9.
14%, a decline of 2 per year.
Q3 single quarter profit improved significantly from the previous quarter, 2019Q3 single quarter gross profit margin23.
84% (a 北京夜生活网 month-on-month increase of 2.
07pct), single quarter net interest rate of 10.
72% (a month-on-month increase of 2.
The average price of coated art paper in Q3 in 2019 was 5856 yuan / ton, the average price of coated art paper in Q3 2019 increased by 83 yuan / ton; the average price of double-coated paper in Q3 2019 was 6,204 yuan / ton, and the average price of double-coated paper in Q2 increased by 34 yuan / ton.
The foreign waste import policy is about to come to an end, the packaging paper production capacity is perfect, and the cost advantage is gradually improved: In 2019, the company’s 10 insert wood chip pulp production line and 40 tons of semi-chemical pulp entered a stable production period, which effectively guaranteed the company’s packaging paper raw material supply.
At the same time, the 40-inch recycled recycled fiber pulp board production line was put into trial production in June 2019. The 20-inch natural high-yield biomass fiber project is expected to be put into production in the fourth quarter of 2019, and it is expected to continue to strengthen the cost advantage of packaging paper.
The gradual tightening of foreign waste imports in the future, the company’s overseas containerboard paper raw material layout advantages are prominent, and it is expected that in the future, raw material tension-driven paper prices will rise.
In the single quarter, roe bottomed out and PB was at a relatively low historical level: the company continued to promote the Laos 120 paper mill, plans to build a North Sea pulp and paper project to continue to deepen the “forest pulp and paper integration” strategy, and planned to build the headquarters to replace the characteristic cultural paper project 45In order to optimize the company’s product structure, the layout of the three major projects will allow the company’s production base to achieve full coverage of the “Belt and Road” economic belt, the coastal and inland areas of the motherland.
At present, the company’s roe bottomed out in a single quarter, and PB was at a relatively low level in history.
With the recovery of the industry boom and the company’s new scale production capacity is gradually put into production, we maintain the company’s net profit forecast for the mother company for 2019-2021 to 20.67/23.
61 ppm, corresponding to the current maximum PE of 10.
2, 9, 6.
3x, maintain “Strong Push” rating and 10 yuan / share target price (13XPE in 19).
Risk reminder: The downturn in the macro economy leads to sluggish demand and intensified competition in the paper industry.