Jinfa Technology (600143) 2019 Annual Report Preview Comment: Performance Forecast Meets Expectations Degradable Plastics Open Growth Space

Jinfa Technology (600143) 2019 Annual Report Preview Comment: Performance Forecast Meets Expectations Degradable Plastics Open Growth Space
Event: The company issued a 2019 performance forecast, realizing net profit attributable to mothers11.54?12.920,000 yuan, + 85% for the whole year?+ 107%.Among them, Q4 achieved net profit attributable to mother 2.10?3.480,000 yuan in the fourth quarter of a year ago (-0.300 million) turned losses and increased significantly. Performance is in line with expectations.In 2019, the gross profit margin of the company’s modified plastic segment products has steadily increased, the sales of fully biodegradable plastic segment products has accelerated, operating profits have increased significantly, and the overall production situation is good.The company acquired Ningbo Jinfa at the end of May 2019 and consolidated it from June 1 to increase the company’s performance.In 2019, the company’s non-recurring profit and loss is expected to be RMB1.Around 98, a decrease of about 9,500 compared with the same period of the previous year, first of all, the reduction of government subsidies included in the current profit and loss.The company’s performance was in line with expectations. Opinions on the control of plastic pollution have been issued to help the development of the degradable plastic industry.On January 19, 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment issued the “Opinions on Further Strengthening the Control of Plastic Pollution.”The banned and restricted plastic products in the “Opinions” include (1) non-degradable plastic bags, (2) disposable plastic tableware, (3) hotels, hotel disposable plastic supplies, and (4) express plastic packaging.The Opinion states that by the end of 2020, at least some regions and areas will be the first to ban and restrict the production, sales and 无锡夜网 use of some plastic products. By the end of 2022, the consumption of disposable plastic products will be significantly reduced, and alternative products will be promoted.By 2025, the management system for the production, distribution, consumption and recycling of plastic products will be basically established, and a multi-national co-governance system will be basically formed. The level of alternative product development and application will be further improved. The amount of plastic waste in key cities will be greatly reduced, and plastic pollution will be effectively controlled.As a substitute for traditional plastic products, biodegradable plastics will fully benefit from the introduction of the “Opinions” and welcome heavy volume. Modified plastics continued to improve, and the acquisition of Ningbo Jinfa improved the industrial chain.The company’s modified plastic production capacity is 186.8 First of all, benefiting from the continuous development of downstream demand and the downward price trend of raw materials, the company’s modified plastics business is expected to continue to improve.After the company acquired Ningbo Jinfa, it plans to build a new production line of 120 tons / year to replace dehydrogenation, 120 tons / year of high-end polypropylene and 40 tons / year of modified polypropylene, with a production capacity of 5 tons / year of gas phase.”Propylene-polypropylene-modified polypropylene” industrial chain to achieve integrated and coordinated development. The new materials business is bearing fruit.The company’s new materials business continues to develop, and has now developed and hatched high value-added new materials businesses such as biodegradable plastics, LCP materials, high temperature nylon, and carbon fiber.In the context of the development of policies in many countries and regions around the world to promote biodegradable plastics, the biodegradable plastics industry is booming, and the global consumption of biodegradable plastics in 2017 was 33.Initially, the compound growth rate in the next five years is expected to remain at 8.5% or more.The company is deeply cultivating the biodegradable plastic industry with advanced technology, excellent customer structure, and continuous production capacity. It is expected to fully benefit from the outbreak of the biodegradable plastic industry and increase the company’s performance. “Buy” investment rating.It is predicted that the company’s net profit for 2019-2021 will be 12 respectively.5.9 billion, 16.3.4 billion and 18.76 trillion, EPS is 0.49 yuan, 0.63 yuan and 0.73 yuan, corresponding PE is 18/14/12 times. It is optimistic that the company benefits from the continuous growth of production capacity and the performance is expected to continue to grow rapidly.Risk warning: the capacity growth exceeds expectations, customer expansion exceeds expectations, and the risk of raw material price fluctuations.

Related Post