Long Mang Baili (002601) 2018 Annual Report and 2019 1 Quarterly Report Comments: The 1st quarter results have improved significantly and continue to maintain high dividends

Long Mang Baili (002601) 2018 Annual Report and 2019 1 Quarterly Report Comments: The 1st quarter results have improved significantly and continue to maintain high dividends
Event: The company released its 2018 annual report and 2019 quarterly report, and its 2018 revenue was 105.54 billion (+1) percent.94%), net profit attributable to mother 22.8.6 billion (six years-8.66%), which is basically consistent with the performance report.Revenue for the first quarter of 201922.RMB 780,000 (+7 for the whole year.61%, +13.83%), net profit attributable to mother 6.23 ppm (+4 throughout the year.19%, compared with 97.60%).The company announced a dividend plan to 20.With 3.2 billion shares as the base number, a cash dividend of 1 for every 10 shares will be distributed to all shareholders in 2018 and the first quarter of 2019.00 yuan and 6.00 yuan (including tax). In the first quarter, the company’s titanium dioxide sales reached a record high, and the gross profit and net profit of the high-dividend company in the first quarter were 41, respectively.73% and 22.67%, ten years +0.42 and -1.64 averages, but the improvement from the previous month is obvious, which is +7 from 2018Q4.36 and +9.76 units, indicating that the company’s increase in product prices in the first quarter has been effectively digested by the market.In Q1 2019, the company will gradually sell titanium dioxide 16.06 tons, an increase of 10 in ten years.11%, of which the company sold titanium dioxide 7 in March.During the 35 period, the monthly sales volume reached a record high.The double increase in the sales volume and price of titanium dioxide products in the first quarter was an important reason for the significant improvement in performance over the previous quarter. We expect the company’s expected performance to increase steadily based on the first quarter.The company’s latest dividend reaches 14.20,000 yuan, plus the semi-annual dividend of 13 in 2018.2 ppm, the latest index rate is 8.43%. The downstream demand for optimistic alkaline titanium dioxide has steadily increased. The company added titanium chloride and successfully discharged more than 60% of titanium dioxide for use in the field of coatings, which belongs to the post-cycle product of real estate.The construction area of houses in March 2019 is half a year8.The growth rate is 20%, and we expect that the demand for titanium dioxide will improve in the second half of the year.In 2018, the company’s sulfuric acid and chlorinated titanium dioxide sales were 52.60 and 5.96 expects that the company is under construction to add 20 chlorination projects and will increase sales by 8-10 digits after it is put into production this year. It is expected that the sales volume of titanium dioxide in 2019 is expected to reach 70 microns. The company has made efforts to lay out the upstream and downstream, strive to build the titanium industry chain, and has long been committed to deepening the refined titanium industry chain, continuously integrating upstream and downstream resources to accelerate industrial upgrading.The company is constructing a 50-insertion titanium concentrate upgrade and conversion titanium chloride slag project in Panxi area. It will replace the annual output of titanium chloride slag 30 and high-quality iron 20; and build an annual output of 3 to replace high-end titanium alloy new material 深圳桑拿网 projects in Jiaozuo base.The titanium tetrachloride device produces a small amount of sponge titanium, creating a complete advanced titanium industrial system.The company announced the latest three-year development goals, and plans to exceed 100 inches of titanium dioxide output in 2021, and strive to reach 20 billion yuan in annual revenue.We believe that the company’s long-term strategy is clear and the industrial chain layout is reasonable. Risk warning: The price of titanium dioxide fluctuates, and the progress of digestion of new chloride production capacity exceeds expectations. Investment suggestion: Maintain “Buy” rating. We expect net profit attributable to mothers to be 30 in 2019-2021.5/36.8/44.3 trillion, a growth rate of 33 once every ten years.4/20.8/20.4%, diluted EPS = 1.50/1.81/2.18 yuan, currently corresponding 青岛夜网 to PE = 10.7/8.9/7.4.We are optimistic that the company will build a complete titanium industry chain for a long time and maintain a “Buy” rating.