Jinhe Industry (002597) Brief Evaluation Report: Large Capital Expenditure Plan Landed, Expected Growth Expectations

Jinhe Industry (002597) 武汉夜生活网 Brief Evaluation Report: Large Capital Expenditure Plan Landed, Expected Growth Expectations
The event company announced on the evening of December 12, 2019 that the 5,000-ton silylstyrene maltol project in the Phase I project of the Circular Economy Industrial Park was adjusted to a 4,500-ton Jiale musk project.Biological as the main body to implement a 5,000-ton methoxystyrene maltol project; according to the company, the company plans to invest in a 5,000-ton sucralose project. A brief review of the implementation of large capital expenditure plans, clear growth expectations of 5,000 tons of bismuth mesylate maltol project, 4,500 tons of Jiale musk project, and 5,000 tons of sucralose project investment of 5 respectively.200 million, 3.600 million, 8.US $ 600 million, with construction periods of 12, 12, and 18 months, 北京夜生活网 respectively, with estimated revenues of 5, respectively.7, 10.9, 10.300 million.The original value of the company’s fixed assets was 25 at the end of 2018.300 million US dollars, 90% of new projects to form a fixed asset record, supplementing about 17 fixed assets.40,000 yuan, an increase of 69%; the company’s revenue in 2018 was 41.3 trillion, three projects are expected to increase the total revenue of 26.9 trillion, an increase of 65%.Total investment of three projects 19.30,000 yuan, the company’s book cash 18.200 million US dollars, annual operating cash flow of about 7 billion to 1 billion US dollars, and gradually increase the company’s capital expenditure plan. Fully lay out the integrated industrial chain, Dingyuan project expands future growth In November 2017, the company announced plans to invest in 22.USD 500 million to build a circular economy industrial park in Dingyuan Salt Chemical Industry Park. The main products of the first phase of the project after the reform include 2 tons of furfural, 600 tons of furanone, 4500 tons of Jiale musk solution, and 5,000 tons of 2-methylfuran.2000 tons of 2-methyltetrahydrofuran, 1,000 tons of furanyl ammonium salt, 8 tons of chlorinated alkylene; butylene chloride is the main raw material of sucralose. After its completion and operation, it will further improve the company’s existing product integration industrial chain layoutAnd develop furfural product line. Ansami continued to rise, the cost of sucralose and maltol was Wang Ansami. Due to the management problems of Haobo above and the pressure of relocation, the start-up load is not high. The company has always maintained a solid monopoly and the price has steadily increased to 6 More than 10,000 yuan / ton; sucralose belongs to the fifth generation of sweeteners, and the market is in a period of rapid expansion. On February 26, 2019, the company announced that the convertible bond project of 3,000 tons of sucralose entered trial production and further brought into play the scale effect.And technical advantages to reduce costs, at least about 20% lower than the cost of peers. At present, the price of sucralose is about 200,000 yuan / ton. We believe that this price has basically exceeded the industry’s breakeven line, and the company still has a better profit level; maltThe resumption of phenol in Tianlihai, the expansion of Wanxiang International, and the entry of some new players, the price goes down. In this process, cost will become the way to win, and this is exactly the foundation of the company. Launched “Ale Sweet” to enter the 2C business and improve the downstream layout. At the end of 2018, the company launched a retail sugar substitute product “Ale Sweet”. At present, Tmall and JD.com have a total of about 200,000 yuan.In the case of intensified competition at the 2B end of the sweetener and the pressure on product prices, the company deployed 2C business for branding and channel construction, gradually reducing the external dependence of downstream sales channels, and weakening the pressure of product price reduction; resulting in the company’s end consumer marketThe change becomes more sensitive to the sense of smell. It is expected that the company’s net profit attributable to its parent in 2019 and 2020 will be 8 respectively.2, 9.500 million, corresponding to PE 14X, 12X, maintaining the buying level.