Dye IndustryRelated Company Analysis
Every night the snow cocci will give you an analysis closer to the truth
In the first half of 2017, global dye sales reached 130,000 tons, a year-on-year increase of 23%. The domestic market pattern in the first half of the year was that both volume and price increased, while overseas sales were stable.
The original business development of dyes and intermediates has always been steady, but the situation reflected in the semi-annual report shows that Longsheng, as the absolute leader in this industry, is consciously guiding the market, even at the expense of some of its own sales to ensure the overall profit of the market. , the intensity of market competition has eased a lot compared to previous years, which may not be due to Longsheng. Longsheng’s half-year dye division (excluding DyStar) has assets of 23.9 billion-, liabilities of 15.5 billion-, and equity of 8.4 billion-. Its revenue of 2.4 billion+ is about 500 million+ less than Runtu, and its gross profit margin is 37.5%, which is 37.5% higher than that of Runtu. The price is 7.5 percentage points higher, which ensures the embedded added value. Although these added values are swallowed up in the form of interest by the 5.5 billion bonds with an interest rate range of 3.5-4.2%, the equity capital generated by the past profits of the dye division is used by Ruan Weixiang in the form of interest. The form of asset allocation has been invested in DyStar, investment, intermediates, real estate and other businesses, and he can be called a master of capital allocation.
DeStar’s business is mainly overseas, with half-year revenue of 3.4 billion+, gross profit margin of 33%+, total assets of 6 billion-, accounting for 54%+ of Longsheng’s overseas assets, and liabilities of 2.9 billion+. From the perspective of efficiency reflected in segment data, DyStar is much more efficient than Longsheng’s domestic dye business, which may involve merger and offset issues, so the true situation is unknown. From a broad perspective, DyStar’s current operations reflect Longsheng’s strategic vision and integration capabilities. DyStar’s business is a plus.
The half-year revenue of the intermediates business is RMB 1.35 billion, the gross profit margin is 38%, the assets occupied are RMB 7.5 billion, and the liabilities are RMB 4.3 billion. The expansion of intermediates is Longsheng’s transformation path from chemical industry to chemical industry. It is related to this The most significant is the half-year R&D expenditure of RMB 300 million, a year-on-year increase of 16%+. This alone can determine Longsheng’s unshakable advantages in dyes and related businesses.
Real estate business, with assets of 19.3 billion-, liabilities of 17.7 billion+, and equity of 1.6 billion-. I really don’t know much about this business and can’t say anything.
Generally speaking, Longsheng can be seen from the following perspective: Longsheng tried several times to create a super oligarch in the dye industry, but except for DyStar’s success, the domestic Yabang decoupling, Runtu also failed due to various interest factors. Domestic dye integration has not succeeded; the expansion of intermediates shows ambition, and no direct benefits can be seen in the short term; in this situation, Ruan Weixiang, an excellent leader, makes full use of his own advantages, and when dyes are not suitable for starting a war, from investment and The two paths of real estate try to increase asset returns, but it is too difficult for investors to judge. This increase in dye prices may not bring much revenue to Longsheng.
The reasons why it is difficult to start are: first, the complexity of the business and the large number of subsidiaries (111 subsidiaries, it is easy to suffer from the disease of large companies); second, the leverage in the asset structure is really scary; third, buying Longsheng is equivalent to buying a leader Ruan Weixiang’s asset allocation ability cannot be observed from the data, information is asymmetric, and the outcome of the family business dispute is unpredictable.
Semi-annual report records: revenue of 7.5 billion+, net profit of 1 billion+, net cash flow of -1.1 billion+, total capital of 42.6 billion-, attributable equity of 16 billion-, ROE6.3%-, fixed assets of 5 billion- . The market value on September 12 was 34.8 billion.
2. Runtu
The revenue in the semi-annual report was 2.93 billion+, the gross profit margin was 30%+, the net profit attributable to the parent company was 400 million+ (260 million+ in the same period), and the net cash flow was 220 million- (520 million- in the same period). Although revenue has increased and profits have increased in the first half of the year, the true extent of profits is limited. This is not a problem for Runtu’s family, but is common in the industry. Looking at the cash flow statement, we can see that operating receivables increased by 750 million, and payables increased by 360 million. At the same time, the loans that Runtu repaid in the first quarter were added in the second quarter.
The inventory structure has not changed from the beginning of the year. There is no change in raw materials, production in progress, and inventory. On the contrary, it has increased compared with the first quarter. The influence of seasonal factors is on the one hand, and on the other hand, it can be seen that the time in years is From a span perspective, price increases are just a concept. They have a great psychological impact on investors and will not have much impact on actual sales. Therefore, they will not affect revenue and profits too much and produce a relatively large increase in income, not to mention cash. flow. publicIt’s still the same company, but the mentality may not be the same as before.
In the first half of the year, the volume increased by 23%-, and the revenue increased by 25%+. Runtu’s revenue in the first half of the year increased by 40%, but the volume is unknown; Longsheng’s incremental gross profit margin was 46%-(last year’s stock gross profit margin was 35%+) , Runtu 40.5%-(28.6%+). Runtu’s scale effect and cost control are worse than Longsheng, but better than other companies in the industry.
In the first half of the year, Runtu’s business extended upstream and merged with Jiangsu Yuanzheng, an intermediate company. The acquisition price was very low from the perspective of the secondary market, with a purchase price of 252 million, 5.7PE+1.5PB, and 2016 revenue of 350 million. , net profit 0.44 billion-, previously it mainly provided intermediates for Runtu. It can be seen from this transaction that it is becoming increasingly difficult for companies in the industry to survive, and there will be no delay in selling. The valuation of companies in the industry by industrial capital is much lower than the current price in the secondary market. Echoing this situation, the executives of Runtu and Yabang unanimously planned to reduce their holdings. The amount was not small, and their attitude could also be seen from their actions.
These circumstances determine that the current position is a speculative position and will be quickly abandoned if the holding basis does not exist. This feedback basis is not fundamentals, nor likes and dislikes, but just some indicators to measure emotions.
Semi-annual report records: revenue 2.93 billion+, cost 2.05 billion-, gross profit margin 30%+, attributable net profit 400 million+, net cash flow 220 million-, ROE6.3%-, fixed assets 4.6 billion-, The total capital is 8.8 billion- and the vested equity is 6.5 billion-. The market value on September 12 was 14.8 billion.
3. Yabang
Judging from the disclosed operating data, there was not much price change in the first half of the year. On the contrary, the price of anthraquinone dye raw materials increased by 20%, which dragged down the operating results. The gross profit margin for this period was 47%+, a decrease of 2 percentage points year-on-year. The company explained in its semi-annual report that in the first half of the year, the prices of main products increased and decreased. The overall price increased slightly year-on-year, while sales volume declined.
Nearly all the shares of major shareholders have been pledged, two announcements were made that executives were preparing to reduce their holdings, the drop in management expenses was very confusing, the inventory structure did not match the analysis of companies in the industry and operating conditions, the capital chain was tight, etc. These are all very suspicious. The problems of the major shareholders may not have been completely solved. To expect people to rely on moral self-discipline and not to do self-stealing things is really a test of human nature; I do not believe that unrestricted human nature can withstand temptation. .
So, some of the positions I once held were sold out after a small loss.
Semi-annual report records: revenue of 1.23 billion+, net profit of 320 million-, net cash flow of 190 million+, total capital of 4.2 billion+, equity of 3.5 billion-, ROE8.8%-, fixed assets of 1.2 billion-. The market value on September 12 was 11 billion.
4. Jihua
I just had an IPO, so I didn’t read it carefully and recorded the data.
Revenue is 1.24 billion-, an increase of 9.6%-, net profit is 200 million-, an increase of 12%; net current flow is 210 million-, total capital is 4.6 billion-, equity is 3.8 billion-, ROE9.5%, fixed assets 1.05 billion+. The market value on September 12 was 12.4 billion.
5. Annoqi
Revenue is 720 million+, net profit is 62 million-, net cash flow is 34 million-, ROE5.85%, total capital is 1.6 billion+, net capital is 1.08 billion+, fixed assets are 350 million-.
The non-public issuance in the first half of the year, with an amount not exceeding 440 million and no more than 5 specific investors, was used for the construction of 30,000 tons of dye intermediates.
The market value on September 12 was 5.05 billion.
6. Haixiang Pharmaceutical
In the first half of the year, the dye business revenue was 550 million+, the cost was 260 million-, the comprehensive gross profit margin was 53.4%+, and the net profit was 155 million, a year-on-year decrease of 38%+.
Among them, dyes were 340 million- (a decrease of 34%+) and intermediates were 210 million+ (an increase of 75%+).
The company’s data can only be used as a reference, and the approval is incomplete, making it difficult to compare with peer companies.
7. Hangmin Shares
It’s still the same excellent company, but now I can’t get any obvious advantage. Judging from its cost, it has improved compared with last year, but it is not very obvious, and it is not as high as the cost of 2014, the year when dye prices were the highest.
Revenue is 1.62 billion-, attributable net profit is 240 million+, current net flow is 350 million-, attributable equity is 3.22 billion+, total capital is 4.36 billion, and ROE is 7.5%. The market value on September 12 was 8.2 billion.
