Jitai Co., Ltd. -Half -year reports have increased high performance, and organic silicon sealing glue is profitable upward
Anxin Securities released an investment research report, rating: buy.
Event: The company announced that revenue achieved 466 million in the first half of the year, an increase of 6.14%year -on -year, and realized a net profit of 312.87 million, an increase of 270.6%year -on -year.
Organic silicon sealing gum boosted performance, and the expense rate rose slightly during the period: the company’s organic silicon sealing, water -based coatings, other sealing glue, water -based sealing glue, and asphalt paint, respectively, accounting for 64.7%/20.4%/7.9%/4.8%/2.2 %. Organic silicon sealing, water-based coatings, water-based sealing, and asphalt paint revenue increased by 23.1%/-6.2%/-47.9%/-17.6%year-on-year, respectively. Organic silicon sealing gross interest rates rose by 20.1PCT, water -based coatings decreased by 13.9PCT, and comprehensive gross profit margin rose by 8.48pct. As R & D and management costs rose slightly, the period cost increased by 1.7pct.
The cost of organic silicon raw materials has decreased significantly, and the demand for sealing glue is stable: Organic silicon sealing has good aging resistance, good electrical insulation, and high and low temperature adaptability. Car, photovoltaic and other fields. The company’s organic silicon sealing products are mainly used in the construction engineering market, including doors and windows, construction roofs, decorative panels and other fields. According to Bozhan’s consultation, with the continuous improvement of urbanization rate, the building with sealing for about 10%will increase growth. It is estimated that by 2020, the demand for domestic construction organic silicon sealing will reach 670,000 tons. According to Wind data, in the first half of the year, silicon raw materials decreased by more than 40%compared with the same period last year. Silicone-organic silicon prices were significantly large. Look at it in the middle and long term. Benefiting from the improvement of environmental protection standards for chemical enterprises, low -end products have gradually eliminated, the company focuses on mid -to -high -end, and its market share is expected to continue to increase.
The general trend of coatings “oil to water”, new growth points for water -based coatings: The company’s layout and development of water -based coating business since 2006, and now has developed a number of water -based coating products to replace traditional solvent -based coatings and obtain the use of downstream customers. With recognition, it has a certain first -mover advantage. Its application field has gradually expanded from a single petrochemical equipment market to container manufacturing, steel structure and construction engineering market. According to statistics from Rongda, the compound growth rate of China’s water-based coatings in 2011-2017 reached 14.1%. In 2017, the output of water -based coatings in China was about 2.32 million tons, a year -on -year growth rate of 22.1%. At present, international brands such as BASF, Ashid, Akzunberry and other international brands account for relatively high international markets. As a domestic leading enterprise, relying on the advantages of the container, the long -term growth potential is greater.
Investment recommendations: It is expected that the company EPS in 19-21 was 0.46, 0.7, and 1.08 yuan, respectively; the buy -A investment rating was given, the target price of 6 months was 11.5 yuan, which was equivalent to 19-21 PE 25/16/11 times.
Risk reminder: The price of raw materials has risen sharply, and the progress of water -based coatings is less than expected.
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