Xinao Shares (600803) 2019 First Quarterly Report Review: Steady Business Operations Focus on Clean Energy
The company’s main business is operating steadily, Santos and Xinneng Phoenix are operating well, and the additional production capacity is continuously released. We are optimistic about the company’s development for a long time and maintain the company’s EPS forecast for 2019-2021 to 1.
34 yuan / share, maintain target price of 18 yuan, maintain “Buy” rating.
The first quarter results were flat and Santos performed well.
The company achieved operating income of 31 in Q1 2019.
400 thousand yuan, ten years +6.
78%; net profit attributable to mothers3.
49 trillion, +1 a year.
The first quarter results remained basically the same last year. The company’s product prices have declined and sales have risen overall. Blended coal / washed coal / trade coal / self-produced refined methanol / trade methanol / dimethyl ether / pesticide drugs / pesticide preparations / veterinary drugsThe sales volume of the original drug and veterinary drug preparations respectively changed -22% / + 27% / + 44% / + 86% /-23% / +杭州桑拿网 10% / + 38% / + 27% / + 23% / + 43%.
At the same time, Santos performed well, with sales revenue of 10 in the first quarter.
$ 1.5 billion, ten years + 28%; production of 18.4 million barrels of oil equivalent, ten years + 33%; sales of 22.8 million barrels of oil equivalent, each time + 21%.
With the expansion of production capacity, the company’s future performance can be expected.
The new energy 20 carbon dioxide / year stable light hydrocarbon project co-produces 200 million cubic meters of natural gas each year and further processes it into LNG.
At present, the project’s main product for stabilizing light hydrocarbons has completed the commissioning of individual units and linked test runs. The LNG product installation has opened the technical process of catalytic gasification and gasification gasification.
With the continuous release of related productivity, the company’s market share may continue to increase, providing protection for the company’s future performance.
It intends to sell pesticide and veterinary drug assets, focusing on clean energy business.
The company announced that it intends to sell its subsidiary Weiyuan Biochemical, 100% of the animal pharmaceutical industry and 100% equity of Inner Mongolia Xinweiyuan. The transaction price of all the underlying assets is 75855.
Limin shares to 4.
800 million transferred 60% of the target assets; Xin Rongrenhe transferred 25% of the target assets to 200 million; Jinyu Xinwei assumed the performance commitment and compensation of the target company to 7,855.
78 million transferred 15% equity of the target company.
After the completion of the asset sale, the company will focus more on the development strategy focusing on natural gas clean energy and energy technology services, thereby further enhancing the company’s core competitiveness.
Risk factors: fluctuations in LNG prices; increased tariffs caused by trade barriers; and uncertainty about asset sales.
Investment suggestion: The company’s main business is operating steadily, Santos and Xinneng Phoenix are operating well, and gradually increasing the capacity of continuous release, the company’s performance may further improve, and we are optimistic that the company’s view will remain unchanged for a long time.
Maintain 2019/2020/2021 EPS forecast to 1.
34 yuan / share, maintain target price of 18 yuan (17 times PE in 2019), maintain “Buy” rating.