Yunhai Metal (002182): Extending the industrial chain to compensate for the short board demolition compensation and increase thick profits

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Yunhai Metal (002182): Extending the industrial chain to compensate for the short board demolition compensation and increase thick profits

Event: The company released the 2019 semi-annual performance report, and the company achieved operating income in the first half of the year24.

64 ppm, an increase of 0 in ten years.

89%; net profit attributable to mother is 2.

78 ppm, an increase of 91 in ten years.

08%; net profit after deduction is 1.

0.6 million yuan, an increase of 73 in ten years.

15%; EPS is 0.

43 yuan / share, opinions: 1, performance growth, exceeding market expectations.

In Q2 2019, the company achieved 武汉夜生活网 revenue of 12.

7.4 billion, an increase of 7.

06%; realized net profit attributable to mother 2.

300 million, an increase of 385.

37%; net profit deducted from non-return to mother 0.

650,000 yuan, an increase of 56.


The company expects to realize net profit attributable to mothers from January to September this year.

800 million -5.

200 million, an annual increase of 93.

83% -109.

83%, of which the expected change in net profit in the third quarter is 97% -136%.

2. The improvement of industry profit contributed to the company’s profit.

Industry earnings remain high.

The average price of magnesium alloy in the first half of 2019 was 1.

78 million / ton, with an average annual growth rate of 11%; and the decline in the price of raw materials ferrosilicon decreased by 12% and replaced by 10% from the previous month, further expanding the profit margin of production and supporting the company’s steady improvement.

The company’s gross profit margin for 2019H1 reached 16.

84%, the highest level in recent years, and 14% in the same period last year.

Q2 single quarter gross margin was 18.

92%, the highest level in recent years.

Net cash flow from operating activities in the first half of the year increased by 88 per year.

64% to 3.

3.5 billion.

3. Demolition compensation funds contributed mainly to profit growth.

The total amount of compensation signed by the company and Nanjing Lishui Economic and Technological Development Corporation for the headquarters area is 6.

750,000 yuan, the company has received a total of 4.

2 trillion, the relocation and compensation progress are on schedule.

On June 18 this year, the company signed the Honglan project again for compensation for the relocation of the Yunhai Precision Plant about 1 yuan.

7.6 billion yuan (excluding tax), and the compensation amount for the relocation of Nanjing Yunkai Plant of Jingqiao Project is approximately 1.

69 ppm (excluding tax).In Q2 2019, the company’s asset disposal income increased by 1 from the previous month.

8 ppm to 1.

8.1 billion.

4. Further extending magnesium deep processing.

The company dates Baosteel Metal, a strategic investor, and is expected to achieve synergies, taking advantage of Baosteel’s scale, channels and customer verification advantages in the automotive industry.

In addition, the company intends to 2.

3.5 billion acquisition of 100% equity of Chongqing Boao Magnesium Aluminum, continuing to expand into the field of magnesium deep processing.

Extension and Baosteel’s shareholding are expected to make up for the company’s shortcomings in the field of magnesium deep processing and solidify the company’s leading part in the field of magnesium.

The company is expected to achieve net profit for 2019-20124.

43, 3.

5, 3.

40,000 yuan, corresponding to a price-earnings ratio of 12.

8, 16.

2, 16.

6 times.

Maintain a highly recommended -A rating.

Risk reminders: 1. The price of magnesium has fallen sharply; 2. The substantial growth of raw materials such as ferrosilicon has eroded the company’s profits 3. Environmental risks