Run Earth Shares: Are You Really Losing Shangyu Face?

The company's annual income is 3 billion 66 million (+32.30%), net profit 469 million (+20.27%), EPS1.22 yuan.

The 11 year growth was mainly due to the sharp rise in the price of disperse dyes, as well as the increase in sales and prices of insurance powder.

The company intends to distribute cash for every 10 shares of 4 yuan, with a dividend rate of 33%.

Two consecutive quarters of decline in performance, waiting for the downstream demand for improvement in the 4 quarter revenue 710 million (+27.1%), net profit 123 million (-7.3%).

The 1 quarter income was 831 million (+29.1%) and net profit was 71 million (-29.1%).

Income growth is mainly due to

The reason for the decline in profits is the downturn in the industry, and the decline in product prices and sales.

downstream

The demand for macro-economic impact continued to slump, resulting in the production of disperse dyes and reactive dyes in Zhejiang in the 1 quarter, down 33% and 21% respectively over the same period.

But in the long run, the textile and garment industry is still growing. With the easing of monetary policy, the demand for textile and clothing will gradually recover slowly, and we can pay close attention to the indicators of downstream recovery.

H acid, Riley and Yorkshire promote endogenous growth of the company.

Ming Sheng 10 thousand tons of H acid production capacity is now operating normally, has achieved profitability and become an important growth point.

The environmental protection policy of HA is becoming stricter and its capacity is shrinking and concentrating. In the future, as the demand for reactive dyes is improved, the price of H acid will increase greatly, and will accelerate the integration of reactive dye industry.

With the difference of high value added dyestuffs, the production capacity is 4500 tons, and the profit is 10 million 810 thousand in the second half of last year. This year's total output will further contribute to the performance.

In August last year, Yorkshire consolidated the export capacity of Yorkshire to enhance the global distribution and make the company develop well.

The above points push the company's endogenous growth to resist the downturn of the industry.

Risk warning: the demand for textile and clothing is lower than expected in the macroeconomic downturn, and the price of raw materials fluctuates.

In the long run, the company continues to grow and maintains a "recommended" rating.

The global concentration of the dyestuff industry will be concentrated and the oligarchs will have strong bargaining power. Once demand recovers slightly, profitability will still recover. Cotton prices will be stable enough, and the demand for reactive dyes will be revived.

And Li Lai put into production to become a new growth point and integrate the Yorkshire to enhance export capacity. It is estimated that EPS will be 1.31, 1.59 and 1.70. yuan in 12-14 years. In the future, the demand for reactive dyes will revive.

Abundant funds help enterprises achieve leaping development.

Corresponding to 12 years, 18 times PE, reasonable valuation 23.58 yuan / share, maintain the "recommended" rating.