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Jinhe Industrial (002597) Half-yearly Report in 2019: Falling prices of bulk chemicals dragged down 2019H1 results Multi-project advancement attempts to open up growth space

2020-03-26

Jinhe Industrial (002597) Half-yearly Report in 2019: Falling prices of bulk chemicals dragged down 2019H1 results Multi-project advancement attempts to open up growth space
Event: Jinhe Industrial released the 2019 semi-annual report, reporting and realizing operating income19.7.8 billion, a decrease of 12 every year.32%; realize net profit attributable to shareholders of listed companies.10,000 yuan, down 26 every year.07%.Press the latest 5.Based on the total capital of 5.9 billion shares, the company realized a diluted income.72 yuan, the semi-annual operating net cash flow is 0.68 yuan. The second quarter achieved operating income10.69 ppm, a decrease of 4 per year.42%; realize net profit attributable to shareholders of listed companies.21 ppm, a decrease of 12 per year.17%; quarterly EPS is 0.39 yuan. We maintain our investment rating of “Prudent Overweight”.Jinhe Industry completed a series of technical reforms in 2019H1 to reduce production costs, the food additive business maintained its growth momentum, and launched Ailet products through Internet channels, laying a foundation for the subsequent product development in the downstream market.However, due to the decline in the prices of bulk chemicals over the same period of the previous year, the company’s sales revenue and net profit have gradually decreased.The company actively promotes many projects such as sucralose, chlorinated alkylene, furfural and so on. Jinhe Industry is a leading enterprise of food additives.The company mainly synthesizes sweetener acesulfame, sucralose and spice maltol have the world’s largest production capacity, and the downstream demand of products continues to grow rapidly.Ansaimi’s industry structure is stable and product profitability. In the competitive stage of sucralose and maltol, the company continues to improve its technological level, build an integrated industrial chain to strengthen its cost advantage, and promote the market 北京洗浴会所 to continue to improve its profitability.With 1,500 tons of sucralose in 19 years, Dingyuan Phase 5,000 tons of maltol and sucralose raw materials have been put into production. Subsequently, Dingyuan Phase II potassium sorbate and its raw materials plan progressed in an orderly manner. The company gradually strengthened industrial coordination and deepened the industrial chain.Integration to create new business growth points.We maintain the company’s EPS for 2019-2021 to be 1.53,1.76, 2.The forecast of 24 yuan maintains the investment rating of “prudent increase in holdings”. Risk reminder: the risk of constant fluctuations in the price of chemical products, the risk that new projects are put into operation less than expected, and the risk of the impact of the Sino-US trade war on global economic development is uncertain.