Long Mang Baili (002601): maintains good growth momentum under high base, three-year plan solid industry leader

Long Mang Baili (002601): maintains good growth momentum under high base, three-year plan solid industry leader
Event: The company released the 2018 annual report and the 2019 first quarter report, and achieved operating income of 104 in 2018.41 trillion, +1 a year.78%, net profit attributable to mothers22.860,000 yuan, at least -8.66%, and at the same time, it is planned to pay 1 yuan (including tax) for every 10 shares; the first quarter of 2019 will achieve revenue of 27.780,000 yuan, ten years +9.02%, achieving net profit attributable to mother 6.23 ppm, +4 a year.19%. 2019Q1 maintained a good growth momentum under a high base.In 2018, the company’s titanium dioxide output was 62.66 南京夜网 seconds, sales 58.56 samples, all of which have made steady progress, and their performance remains stable.Entering 2019, the company raised the amount of titanium dioxide twice on February 13 and March 7, respectively. At the same time, the company sold 73,546 tons of titanium dioxide in March 2019, setting a new historical high. In the first quarter of 2019, the company’s cumulative sales of titanium dioxide 160596Tons, an increase of 10 in ten years.11%.The increase in volume and price of titanium dioxide in Q1 2019 brought operating income of 78 ppm, the highest in a single quarter, and achieved net profit attributable to mothers6.23 ppm, the highest in the first quarter of the calendar year. The industry leaders have significant competitive advantages.In the next three years, the company determines the development goal of the production and sales scale of titanium dioxide from 70 to 85 inches to 100 inches. At the same time, it has resources upstream (the acquisition of Longmang Titanium Industry and Ruierxin), and the midstream has chlorination technology (Phase 1)The operation is stable every year, the second phase is 20 seconds per year, and the trial production will be carried out. The downstream market and pricing power (export ratio exceeds 50%, leading the industry’s price increase rhythm after the Spring Festival). The industry leaders are configured to transition the moat of the entire industry chainSignificant competitive advantage. The introduction of new production capacity of the chloride method helped the company to go global.Against the backdrop of global supply-side contraction and optimistic export performance, the company ‘s chlorination method Phase II 20 years / year capacity will be trial-produced in the second quarter. With the support of technology and experience accumulation in Phase I, it is expected to be successfully put into production.Strong, will lead the mainstream development direction of China’s titanium dioxide, and help the company’s performance to a higher level. Continued high dividend returns to shareholders.The company’s cash dividends accounted for 91% of the net profit attributable to the parent in 2016-2018.93% / 84.58% / 66.58%, the company expects to maintain a dividend rate of about 80% in the future, and continue to pay shareholders with high dividend returns. Maintain “Buy” rating.It is expected that the company’s net profit attributable to its parent from 2019 to 2020 will be 32.43/40.330,000 yuan, corresponding to EPS 1.6/1.98 yuan, PE 11/9 times, 北京spa会所 maintain “Buy” rating. Risk reminder: the risk of falling titanium dioxide prices, the risk of new production capacity is less than expected.