Sun Paper (002078): Second-quarter profit improves quarter-on-quarter and advances forest-pulp-paper integration
Event: The company released a semi-annual report: 107 revenue in the first half of 2019.
76 ppm, a ten-year increase2.
89%; net profit attributable to mother 8.
87 trillion, down 27 a year.
80%; net profit after deduction to mother 8.
64 ppm, a decrease of 28 per year.
Corresponding single-quarter revenue 53.
2.5 billion, down 1 year.
97%; net profit attributable to mother 5.
0.6 billion, a decrease of 17 per year.
18%; net profit after deduction is 5.
3 billion, down 12 a year.
Opinion: Revenue growth is expected, and net profit in the second quarter has improved significantly from the previous quarter.
Looking at the quarter, the company achieved revenues of 54 in 19Q1 / Q2.
25 trillion, respectively, short-term changes +8.
19Q1 / Q2 achieved net profit attributable to mother 3, respectively.
0.6 billion, down 38 each year.
34% / 17.
18%, net profit in the second quarter increased by 33.
In terms of different products, the revenue of double adhesive paper / coated 深圳SPA会所 paper / cardboard paper / dissolved pulp was 35.
26 trillion, the short-term changes were -4.
83% / + 20.
71% / + 26.
The profitability of cultural paper improved, and the profitability of dissolving pulp increased.
In the first half of this year, the price of wood pulp continued to decline, and the prices of coniferous pulp and broadleaf pulp fell by 23 respectively.
20% and 19.38%. At present, wood pulp stocks are high, global demand is weak, and pulp prices are expected to continue to decline.
In the first half of the year, paper mills successively issued price increase letters, and in the second quarter, cultural paper began to raise prices.
From August to September, the peak season of the cultural paper tradition is coming, supporting the continued growth of 南宁桑拿 paper prices.
Benefiting from rising paper prices and falling pulp prices, the profitability of cultural paper improved.
Alternatives to the old chemical pulping process in the fourth quarter of 2018 to reduce their costs.
19H1 dissolving pulp gross margin improved significantly.
The increased profitability of dissolving pulp is expected to boost the company’s performance.
Earnings forecasts and estimates: The advancement of forest-pulp-paper integration and Laos dissolving pulp projects attempts to reduce costs and raise earnings forecasts.
EPS are expected to be 0 in 19-21.
16 yuan, corresponding PE is 9X, 8X, 7X.
Give “Buy” rating.
Risk Warning: The price of raw materials fluctuates greatly, and the project construction is less than expected