Hainan Rubber (601118): Bigger and Better Industry Transformation and Upgrade to Welcome New Development
This report reads: The company integrates global rubber resources, expands high-quality production capacity, actively extends the industrial chain, discovers research and development capabilities, and revitalizes technological innovation. The company is expected to achieve steady growth in the future.
Investment Highlights: We expect the company to achieve 78 revenue in 2019-2021.
6.8 billion, 89.
08 billion, 107.
10 billion yuan, net profit attributable to mothers is 3.
8.6 billion, 4.
32 billion, 4.
33 trillion, the corresponding EPS is 0.
09 yuan / 0.
10 yuan / 0.
10 yuan, averaged based on relative and absolute estimates, we give the company a target price of 5.
19 yuan / share, corresponding to 57 in 2019.
7x PE, 深圳桑拿网 giving a “cautious increase” rating.
The natural rubber market continues to be sluggish, and the company integrates the industry to resist the cycle.
The imbalance between supply and demand in the natural rubber market will continue. It is expected that natural rubber prices will continue to hover in the short term.
In order to seek new impetus for development and strive to achieve steady progress in the main business, the company integrates domestic and foreign rubber resources, focuses on developing high-yield projects, actively develops high-value-added deep processing, and expands high-quality production capacity. We expect the company to achieveSteady growth.
The area of rubber plantations ranks first in China, with strong technical strength and significant advantages: As the leader of the natural rubber industry, 杭州桑拿 the company maintains the largest rubber plantations in China, ensuring the company’s market share.
At the same time, the company’s tapping technology and customized product processing technology are its strong core competitiveness. The company has made substantial breakthroughs in intelligent tapping equipment and military special rubber, and the company’s industry has therefore been consolidated and strengthened.
Internal stability and external development help development, technology and R & D progress together: In the sluggish industry cycle, the company changed its business strategy, strived to broaden its business areas, strengthened its R & D strength, and stimulated technological innovation through acquisition of subsidiaries or asset reorganization, while continuously expanding overseasMarket, creating a new engine for company profit growth.
The company is gradually weakened by the impact of the natural rubber industry cycle, and the company’s operating efficiency and profitability will gradually improve.
Risk reminder: The price of natural rubber fell more than expected, and the demand for alternative products caused less than expected growth.