Long Mang Baili (002601): 1Q19 Titanium Dioxide Sales Innovative High Chlorination Project Helps Performance Growth

Long Mang Baili (002601): 1Q19 Titanium Dioxide Sales Innovative High Chlorination Project Helps Performance Growth
The company’s recent situation Longman Baili released titanium dioxide sales data. It is expected that in March 2019, the sales volume of titanium dioxide will be 73,546 tons, which will continue to increase by 607 tons.In March, 160,596 tons of titanium dioxide were gradually sold, an increase of 14,742 tons per year, and an annual increase of 10.11%. Comment on the high operating rate and better demand, the sales of titanium dioxide in 1Q19 continued to increase by 10.1%.Affected by the peak production of industrial enterprises in autumn and winter, from November 15, 2017 to March 15, 2018, the company’s Jiaozuo base sulfuric acid titanium dioxide production line limited production by 30%, resulting in a decrease in 1Q18 titanium dioxide production;High, coupled with better downstream demand, pushed up sales in 1Q19 by 10.11% to 16.06. Low inventory replenishment orders increased, pushing the price of titanium dioxide to rebound.Due to the decrease in the demand for titanium dioxide prices in the off-season in 4Q18, the company’s and downstream customers’ titanium dioxide inventories are at low levels after the Spring Festival. With the recovery of downstream stocking demand, titanium dioxide prices have ushered in a rebound. Since the Spring Festival, the company has raised the titanium dioxide prices twice, of whichThe price of titanium dioxide with sulfuric acid method is gradually increased by RMB 1,000 / ton for domestic customers and gradually increased by USD 200 / ton for international customers.According to Baichuan Information, the company’s current titanium dioxide market price is 16,800 yuan / ton, which is 6 higher than the bottom price before the Spring Festival.3%, but prices are still down 6 from the same period last year.7%.At present, the company’s inventory is still low, and demand season is expected to continue to support the price of titanium dioxide. 20 The initial production of chlorinated titanium dioxide will contribute to the increase in profits.The company 20 expects the chlorinated titanium dioxide project to progress steadily and is expected to be put into production in 2Q19. The expansion of the production capacity of chlorinated titanium dioxide 南京桑拿网 will optimize the company’s product structure and enhance competitiveness. At the same time, increasing the production capacity release will help the company’s performance growth.The company plans to use the titanium concentrate resources in the Panxi area to build a 30 titanium chloride slag project, which can fully meet the second phase of 20 titanium chloride white powder production. The construction of the titanium chloride slag project will further improve the company’s industrial chain and reduce production costs. It is estimated to maintain the 2019/20 profit forecast1.26/1.41 yuan / share.As the industry estimates the hub moves upwards, the target price is raised by 13.6% to 20 yuan, compared with 21 previously.5% growth space, target price corresponding to 16/14 times 2019/20 P / E ratio, maintain the recommended rating. Risk: The price of titanium dioxide has dropped, and the progress of the 20-ton chloride titanium dioxide project has been lower than expected.