Limin Shares (002734): Continuously Strong Growth Performance Equity Incentive Injects Continuous Development Momentum

Limin Shares (002734): Continuously Strong Growth Performance Equity Incentive Injects Continuous Development Momentum

Weiyuan consolidated in June, and its overall performance grew strongly.

The company achieved revenue of 10 in 2019H1.

880,000 yuan, an increase of 52 in ten years.

65%; net profit attributable to mothers1.

99 ppm, an increase of 92 in ten years.

98%, equivalent to EPS 0.

70 yuan / share, an increase of 89 in ten years.

19%, with an expected average ROE of 10.

36%, an increase of 4 per year.

39 units.

19Q2 achieved revenue of 6.

910,000 yuan, an increase of 96 in ten years.

59%, an increase of 74 from the previous quarter.

06%; net profit attributable to mother 1.

160,000 yuan, an increase of 162 in ten years.

39%, an increase of 39 from the previous month.

76%.

In 2019H1, the company’s fungicides, pesticides, and herbicides business achieved revenue 6 respectively.

1.8 billion, 2.

6.8 billion and 1.

4.6 billion, an increase of 7 each year.

25%, 430.

80% and 84.

88%.

Considering that the company directly and indirectly holds a total of 80% of the equity of Weiyuan Asset Group, and began consolidation after May 31, we replaced the company’s pro forma net profit of about 2 in the first half of the year.

500 million.

At the same time, the company expects net profit for the first three quarters of 19 2.

7-3.

0 million yuan, an increase of 80% -100%, and basic earnings per share is 0.

95-1.

06.

The implementation of interest stock incentives will help bind Weiyuan’s association with the interests of listed companies.

The company released the 2019 budget stock incentive plan, which is intended to grant a total of 2.6 million shares to 159 core management and technical personnel within Weiyuan, accounting 武汉桑拿 for 0 of the company’s share capital.

92%, grant price 7.

64 yuan.

The company’s move can bind the interests of Weiyuan’s core team and listed companies, and accelerate the integration of Weiyuan in listed companies.

The main product boom continued, and the company’s future project reserves were abundant.

In the fourth quarter of 2018, the company added 1 target chlorothalonil and 1 generation of mancozeb zinc production. Benefiting from strong downstream demand, the company’s main product chlorothalonil market prices continued to be firm.The giant gap is the long-term purchase business of bacteriocin, which will ensure the company’s breakthrough market share and profitability in this field for a long time.On the new project, the company’s 500t / a anisole metronidazole project is expected to be completed in 19Q4南京桑拿网. The design work of the water-based preparation project with an annual output of 1t has been started, and the installation and commissioning of the Daisen series DF project with an annual output of 10,000t has been successfully completed;The joint-stock company Xinhe Agrochemical started the construction of the fourth chlorothalonil production line in the first half of 19, which is expected to be completed and put into operation in 19Q4.

In 2020, the company will also build a second-phase project of 500 tons of anisole and a 7,000-ton aluminum triethylphosphonate project. At the same time, Weiyuan’s new biochemical project reserves are abundant. It is expected that the internal Mongolian base will show strong growth potential in the future, helping the companyContinuous and rapid growth.
Earnings forecast and investment grade: What do we expect the company to do in 2019?
Net profit attributable to mothers is 4 in 2021.

07/5.

53/6.

69 ppm, EPS is 1.

44/1.

95/2.

36 yuan, the current corresponding PE is 10/8/6 times.

After the completion of the Weiyuan merger, the company’s product structure will be more supplemented and improved, and its technical level and sales channels will be improved. At the same time, the chemical industry park land will be significantly expanded, which will greatly increase the company’s future growth potential.

Therefore, we believe that the company’s current market value is significantly underestimated. We maintain a “Buy” rating and continue to recommend it.

Risk Warning: Lower than expected downstream demand, rising raw material prices, risks of production safety, risks of exchange rate changes.