Xin’an Co., Ltd. (600596): The performance index of organic silicon continues to expand around the upstream and downstream of the industrial chain

Xin’an Co., Ltd. (600596): The performance index of organic silicon continues to expand around the upstream and downstream of the industrial chain

The event company released a semi-annual report for 2019, which stated that the company achieved revenue 58.

22 ppm, a reduction of 2 per year.

47%; realized net profit attributable to mother 2.

5.8 billion, a year-on-year decrease of 63.

78%, the actual net profit attributable to the mother fell within the forecast range; in Q2, the company achieved net profit1.

38 trillion, a decrease of 69 a year.


A brief comment on the decline in the average business climate of the silicone and pesticide sectors has led to a series of performance index reports. The company’s production equipment runs smoothly and the production and sales of products are generally flat with the same period.

However, the decline in the gap between product prices has 佛山桑拿网 shown an increase in the performance of companies.

In the area of organic silicon, the prosperity of the entire industrial chain has fallen sharply. The main export products are ring silane, silane intermediates, silicone rubber, and silicon powder prices -38.

86%, -36.

74%, -24.

15%, -15.

The gross profit margin of the product increased by 94%, and the average price of pesticide raw materials changed little in the case of pesticides, but the price of preparations (mainly glyphosate, and some diuron) also dropped11.

79%, also due to a reduction in profit.

In terms of expense ratios, the company’s sales, management, and financial expense ratios are 3 for the report.

02%, 4.

07%, 0.

60%, respectively +0.

09, +0.

27, -0.

06pct, basically flat every year.

The average value of organic silicon upstream and downstream products is expanding, focusing on resource recycling and high-end products. At the end of the reporting period, the company’s total construction in progress.

7.7 billion yuan, an increase of 51% each year.

The projects under construction cover the upstream and downstream of the organic silicon industry chain, and continue to make efforts in the field of resource recycling and high-end products, mainly including: 1) Zhenjiang Jiangnan Organic Silicon Phase II Project is under construction. It is expected to be put into operation in 2020Q1, which will keep the company’s organic silicon production capacity at theOne echelon; 2) The company issued an announcement on August 18, 18, plans to invest 6,400 million and Evonik Degussa to jointly establish Evonik An Silicon Materials Co., Ltd. to build an annual production of 8,000 tons of fumed silica project.Late trial production in February 2021.

The company can fully obtain high profit returns from this cooperation, and at the same time, it can ensure the stable recycling of the organic silicon by-product resources in the Zhenjiang blockchain of the company, and further improve the organic silicon industry chain; 3) The company further accelerates the comprehensive cooperation with Momentive GroupOn October 15, 18th, it signed an ownership transfer agreement with Momentive Singapore to sell 24% of Xin’an Momentive, but still retain shareholder rights. At the same time, the two parties signed a technical cooperation memorandum to expand liquid base glue, dimethyl chlorideOxides, hydrogen-containing double heads, continuous polymerization route products, and overall project production capacity3.

2Budget, it is planned that some products will be completed in trial production at the end of 2019. It is expected that after the full production in 2020, it will increase revenue by about 1 billion US dollars and increase revenue by about 70 million yuan.

With the integration of the industry, the glyphosate profit center increased the price of glyphosate. After the boom in the second half of 2016, the subsequent prices changed from time to time, and the average prices from 2017, 2018, and 2019 to 2 were respectively.

140,000 / ton, 2.

710,000 / ton, 2.

480,000 / ton, a significant increase over 17 years ago.

We judge that the profit center of glyphosate has improved significantly compared to the previous ones. The reasons include: 1) glyphosate has undergone industry integration, and there are currently only 10 production companies; 2) the pesticide industry is undergoing a long-term economic recovery.

At the same time, the company also has the capacity of glyphosate raw materials and preparations. The integration advantage can further help the company to obtain high profit margins.

Risks suggest that the business climate of the organic silicon industry continues to decline; environmental protection and production safety risks are expected to make the company’s profit for 2019-2021 is 5, respectively.

70, 6.

92, 8.

00 ppm, corresponding to PE 13X, 11X, 9X, maintaining the buying level.