Shuangjian Co. (002381): Continuously launching high-end products and continued stable release of performance

Leading rubber conveyor belt industry with high performance.

The company’s main military rubber conveyor belt products are developed, produced and sold. In 2018, the company’s 合肥夜网 conveyor belt business accounted for 95%.

67%, the company ranked eighth in the “China Top Ten Conveyor Belt Enterprises” for eight consecutive years.

The company achieved revenue 11 in the first three quarters of 2019.

08 million yuan, an annual increase of 8.

71%; net profit deduction for non-attributed mothers1.

77 ppm, an increase of 60 in ten years.

46%.

The output of coal, electricity, steel, cement and ports recovered, and the inflection point in the growth rate of investment in fixed assets.

The downstream of the rubber conveyor belt mainly includes five major application areas: coal, electricity, steel, cement and ports. The consumption of these five industries accounts for more than 90% of domestic sales.

Since 2016, these cyclical industries have reached an inflection point under the influence of supply-side reforms. The industry structure has continued to improve and is currently in the stage of restorative growth, which has offset a solid foundation for the demand growth of the conveyor industry.

The planting area of natural rubber continues to grow, and raw material prices are hovering at the bottom.

The main raw material of the company’s main product conveyor belt is rubber, including natural rubber and synthetic rubber, whose total cost accounts for about 30% to 40% of the total production cost.

At present, the main producers of natural rubber are Thailand, South Korea, Malaysia, followed by Vietnam, India, China and other countries.

According to WIND information data, the total rubber planting area of major natural rubber producing countries has grown rapidly since 2010, and has slowed until 2018.

From the perspective of the total cut area, the total rubber producing countries in 2018 totaled 9027 thousand feet, and still increased slightly by 0.

86%.

Affected by this, the price of natural rubber has continued to decline since 2011. We judge that the supply and demand pattern of some natural rubber will still be difficult to improve in the future, and prices continue to hover at the bottom.

Focusing on the production of conveyor belts for 30 years, the structure of high-end products has been continuously optimized.

After more than 30 years of continuous operation and continuous innovation in the field of rubber conveyor belts, the company has now formed a complete product chain from ordinary conveyor belts to high-end conveyor belts.

The company continues to carry out research and development and promotion, and constantly introduce new high-end products.

New products such as ceramic high wear-resistant conveyor belts, cableway conveyor belts, high-temperature resistant conveyor belts, and duct conveyor belts have been approved by customers.

Expansion of 10 million square meters of high-strength conveyor belt, profitability is expected to take another step.

The company announced plans to invest 2.

5 trillion new “high-strength conveyor belt project with an annual output of 10 million square meters”.

After the project is put into production, it is expected to realize annual sales income3.

5 ppm and a net profit of 40 million yuan are conducive to the improvement of the company’s production capacity and the optimization of its product 杭州桑拿 structure, further consolidating its competitive advantage in the industry.

Profit forecast and investment rating.

We expect the company’s EPS for 2019-2021 to be 0.

60, 0.

74, 0.

90 yuan / share, combined with comparable company estimates, we are cautiously giving 18-20 times PE in 2019, corresponding to a reasonable value range of 10.

8-12.

0 yuan, the first coverage given a preliminary market rating.

risk warning.

Product prices have fallen, downstream demand has fallen, and industry competition has intensified.