Jiuli Special Material (002318): Full orders support the main industry to improve nuclear power restart and increase performance flexibility

Jiuli Special Material (002318): Full orders support the main industry to improve nuclear power restart and increase performance flexibility

Key points of the announcement The company announced its 2018 annual report, with operating income increasing by 43 each year.

42% to 40.

63 ppm, net profit increased by 126 in ten years.

89% to 3.

04 million, in line with our Air Force expectations.

Key points of investment: Sales volume hit a record high, full orders support and improvement. The company’s seamless pipe and welded pipe sales continued to be 5 in 2018.

07 early and 4.

51 Initially, sales of major products hit a new high since the company went public.

From the perspective of product prices, the prices of seamless pipes and welded pipes are 4 respectively.

50,000 yuan / ton and 2.

610,000 yuan / ton, an increase of 18 over the same period last year.

3% and 9.

5%, product structure continues to optimize.

According to the company’s order situation, the long-term new orders9.

Period 62, orders in hand at the end of 20184.

In 17th, both maintained a high level.

In our opinion, with the continued recovery of the industry, the company’s current orders are still full, and the traditional main industry 武汉夜网论坛 is still maintaining a situation of rising volume and price.

Nuclear power restarts, the company’s performance flexibility is expected to highlight. According to Xiamen Net, reported on January 31, 2019, 4 units that intend to use “Hualong No. 1” technology have been approved, namely: China Nuclear Zhangzhou Nuclear Power No.Unit 2 and CPG Huizhou Taipingling Unit 1 and Unit 2.

Among them, the company has won the bid for the U-tubes for the evaporator of Zhangzhou Unit 1 at the end of 2017. If the project progresses as expected, it is expected to contribute to the company’s performance in 2019 and 2020.

In addition, we judge that the current round of nuclear power restart is expected to start the nuclear power normalization construction phase. Considering that the only domestic company and Baoyin Special Steel Replacement Company currently use nuclear power evaporator U-shaped tube manufacturing qualifications, the nuclear power business income release may increase significantly.Based on the company’s performance, regardless of the increase of projects under construction, it is only calculated based on the current production capacity, and the subsequent annual nuclear power business income has reached an average of 3.

About 5 ppm, the profit level may exceed 0.

700 million.

Maintain “Overweight” rating. We expect the company to be in 2019?
2021 will achieve 3.

87, 4.

52, 4.

93 ppm net profit, corresponding to EPS0 under current equity.

46, 0.

54, 0.

59 yuan, corresponding to 18.

1 times, 15.

5 times, 14.

2x P / E.

Comprehensively consider the increase brought by the company’s nuclear power business and maintain the “overweight” rating.

Risk warning: the recovery of the petrochemical industry may exceed expectations, and nuclear power construction may be lower than expected.