Chuan Hua Shares Strong Textile Chemicals Expected To Turn Around

< p > recently, we conducted on-the-spot investigation of the shares and conducted in-depth exchanges on the company's current status and future development plans with the company's stakeholders.

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< p > < strong > 1, < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > chemical leader, involved in material industry < /strong > /p >

< p > the company is the largest printing and dyeing auxiliaries manufacturing enterprise in China. It has an annual capacity of 160 thousand tons of dyeing auxiliaries, and has an annual production capacity of 160 thousand tons of chemical fiber agent and an annual output of 60 thousand tons of dyestuff. In May 2013, the company's annual output of 100 thousand tons of CIS BR was built and put into operation. However, due to the low demand for downstream butadiene rubber and the company's first involvement in the field, the company's 2013 butadiene rubber project lost 88 million 840 thousand yuan, dragging down the company's performance.

The company has strong market voice in the field of dyeing auxiliaries and chemical fiber agents. In recent years, the gross profit margin has been relatively stable. Among them, dyeing auxiliaries have maintained more than 30% gross profit margin in recent years. The chemical fiber oil agent has maintained a gross profit margin of more than 10%, which is a stable source of income and profits for the company.

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< p > < strong > 2 and butadiene rubber turn loss is an important source of performance growth of the company < /strong > /p >

< p > cis polybutadiene rubber is a synthetic rubber which is mainly used for making tires. It can also be used for manufacturing cushioning materials and various adhesives such as a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > adhesive tape, adhesive tape and sponge glue.

At present, the company has an annual production capacity of 100 thousand tons of CIS butadiene rubber, which was put into operation in May 2013. Due to the short operation time and low demand, the butadiene rubber project in 2013 was in deficit.

The price is about 3500 yuan per ton, and the whole industry can make profits. The company has certain cost advantages, and the price difference can be realized at about 3200 yuan per ton. At present, the price of butadiene rubber is around 11620 yuan / ton, the price of butadiene is 9000 yuan / ton, and the price difference is 2620 yuan / ton. Under such circumstances, it is more difficult for the industry to make profits. It is expected that as the downstream demand gets warmer, the butadiene rubber industry is expected to make profits, and the company will benefit from it at that time. The main raw material of butadiene rubber is butadiene. According to experience, general butadiene rubber and butadiene difference.

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< p > < strong > 3, the dyestuff industry will be more stringent in environmental protection, and high quality enterprises will benefit from < /strong > /p >

< p > in recent years, the state has attached great importance to the pollution problem of dyestuff industry. We expect that under the background, some enterprises whose pollutants are not up to standard will be eliminated in the competition, and the high-quality enterprises with good environmental protection input will have 60 thousand tons / year of active dye production capacity and 5000 tons / year of raw acid production capacity. According to the calculation of the unit consumption, every 1 tons of H acid can produce 1 tons of dyestuff. Therefore, the company's acid also needs to be purchased partly, which, to a certain extent, has affected the profit margin of the company.

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< p > strong > 4, profit forecast and valuation < /strong > /p >

< p > we assume that the production of butadiene rubber has turned into a deficit during the year. There is no significant change in the industry of dyestuff, auxiliaries and chemical fiber agent. It is estimated that the earnings per share of the company in the past 2014-2016 years are 0.59 yuan, 0.70 yuan and 0.75 yuan respectively. The corresponding corresponding dynamic price earnings ratios are 15 times, 12 times and 11 times respectively at the closing price yesterday. For the first time, the "overweight" rating, < /p >

< p > < strong > 5, risk warning < /strong > < /p >

< p > (1) safety production risk; (2) environmental risk; (3) CIS butadiene rubber can not turn around the deficit < a href= "//www.sjfzxm.com/news/index_s.asp" > risk < /a >.

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