Meister (603041): Polyurethane foam stabilizer leading raw material prices lead to a significant increase in performance

Meister (603041): Polyurethane foam stabilizer leading raw material prices lead to a significant increase in performance
The event company released its semi-annual report for 2019, which reported that the company achieved revenue1.70 ppm, a ten-year increase of 7.64%; net profit attributable to mother is 0.34 ppm, an increase of 58 in ten years.47%.Among them, the company achieved net profit of 0 in Q2.180,000 yuan, an increase of 67 in ten years.87%.  Brief comment on the leading foam stabilizer, benefiting from the decline in prices of petrochemical products and silicone raw materials. The company’s main products are polyurethane rigid foam stabilizer and soft foam stabilizer, which contribute about 80% and 20% of the company’s revenue, respectively.Foam leveling agent is an indispensable auxiliary agent for the production of polyurethane rigid foam / soft foam, transforming the role of emulsified foam material, stabilizing foam, etc. The downstream applications are the same as polyurethane plastic, that is, traditional industries such as refrigeration and insulation, furniture, automobiles, building energy conservationField, and also began to gradually explore applications in military and other fields.The company leads the industry in this segment. The annual production and sales volume of rigid foam stabilizer is about 1 ton, with a market share of about 15%, making it the largest domestic manufacturer.  In 2019H1, the company’s hard foam and soft foam stabilizers were 5,296 and 杭州桑拿网 1022 tons, respectively, an increase of 7% and 6%. The prices of hard foam and soft foam stabilizers were 2 respectively.57、2.960,000 yuan / ton, an increase of 3% and 1% each year.Both volume and price rose slightly.The biggest contribution to the company’s performance growth is the decline in the prices of the company’s petrochemical raw materials and organic silicon raw materials. Among them, according to the company’s disclosure, the prices of dipropylene glycol raw materials have dropped to more than 32%, and the prices of silicone D4, MM and high-hydrogen silicone oil have respectivelyDown 39%, 39%, 30%.  The foam stabilizer industry has a stable structure. The company’s main business has a good momentum. The company’s main rigid foam stabilizer products have high technical barriers. The global production capacity is mainly concentrated in a few overseas giants, including Evonik and Momentive.American Air Chemical, etc.The company’s series of rigid foam stabilizers have broken through the monopoly of the domestic market by multinational companies, and have both outstanding cost performance and high-quality technical service advantages. They have become mainstream products in the rigid foam stabilizer, supplying BASF and Dow.Hongbaoli and other well-known chemical companies at home and abroad.Overall, the supply of foam stabilizers is stable, and downstream polyurethane plastic demand has maintained a certain growth, and the overall industry pattern is good.  At present, the company has established a foothold in the domestic and international foam stabilizer market. At the same time, the company’s Nanjing Jiangbei New District 6000 tons / year new generation polyurethane foam stabilizer project is planned to be received in 19H2, replacing the Nanjing Economic Development Zone 5000 tons / year production capacity.After the completion, it will add 1,000 tons / year of production capacity to the company, and at the same time, it can also transform and optimize the company’s product structure.  The supply and demand of the organic silicon industry chain is reversed, and the cost-side logic is expected to maintain 18H2. The prices of the upstream and downstream organic silicon products have fallen rapidly, which has led to the decline in the prices of various raw materials of the company, which is good for the company’s performance.Overall, in 19-21, Xin’an, Hesheng Silicon, Dongyue Group, and Xingfa Group have been committed to large-scale organic silicon production expansion plans, which will continue to exert pressure on the business climate of the organic silicon industry.Too much improvement.At the same time, combined with global supply and demand and geopolitical factors, we judge that the international crude oil price hub will be maintained at a range of 60-70 USD / barrel.Overall, the cost-side logic that supports the company’s performance is expected to be maintained.  The investment proposal estimates that the company’s net profit attributable to the parent company in 2019-2021 will be zero.7.1 billion.810,000 and 0.9.1 billion.Corresponding PE is 24X, 21X and 18X, covering for the first time, giving an overweight rating.