Cibin Group (601636) Company Review: High-end product layout continues to advance glass price hub to promote improvement

Entered into medicinal glass, the large potential company of neutral borosilicate glass market plans to invest in a neutral borosilicate medical glass project. The project is planned to be constructed in phases. The scale of construction is a 3 kiln and 8 line 100 ton / day neutral borosilicate medicinal glass tube.And deep processing of products, the total investment of the project is about 600 million yuan.

This medicine glass project adopts a follow-up investment mechanism. In addition to the investment by Qibin Group Company, a follow-up investment platform jointly established by key management personnel such as the company’s business partners also participates in it, demonstrating the confidence of the company’s executives.

In recent years, the size of the insulin glass market has increased to about 22 billion, maintaining a steady growth, the continuous improvement of the conversion evaluation mechanism, and the use of neutral borosilicate glass has increased.

The main suppliers of neutral borosilicate glass are mostly foreign companies such as SCHOTT, electrical glass, and Corning, and the domestic market share of domestic companies has decreased.

As a domestic leader in floatation, Qibin maintains a stable investment in research and development each year, forming a certain technical reserve. Executives investing in this project are also based on trust in their own technical strength.

With the gradual improvement of domestic enterprises’ technology, it is expected to start to produce domestic alternatives to neutral borosilicate glass.

  The production capacity of energy-saving glass continues to increase. The executive-value-added electronic glass company plans to invest in a new energy-saving glass factory in Changxing County, Huzhou City, Zhejiang Province. The total investment of the project is expected to be about 600 million yuan.

Combined with local float glass production capacity, it is expected to extend further downstream.

In addition, executives set up an investment platform to increase capital in Fuling Electronic Glass. It is expected that electronic glass will be commercialized after 2020, which is an important step for the company to achieve high-end products.

This capital increase is also carried out by the establishment of an investment platform by senior executives. It continues to implement the requirements of the company plan to promote the company’s “manager” to “partner” status. The long-term value of the company and core executives also reflects the highTube confidence in electronic glass.

  The supply and demand are rising. In 2020, the glass price center will continue to rise and the completion of the engineering data will continue to rise. The new construction-completed scissors gap will be gradually repaired. It is expected that it will continue to be rebuilt in 2020. The demand for automobiles has also bottomed out and has been achieved in November 19.

Positive growth of 7%, so bullish on overall glass demand recovery.

According to the forecast of China Glass Futures Network, there will be about 14-15 glass production lines with cold repair conditions next year. In terms of resumption, a large number of production lines have been resumed in 18-19, and there are not many remaining production lines under cold repair.There are about 9-10 production lines that have resumed production conditions. Considering some new production lines, it is expected that the net increase of production lines in 2020 will be negative every year.

Therefore, in view of supply and demand, the overall glass price hub will increase next year, and as the industry leader, Qibin has obvious advantages in production capacity, so its performance flexibility is also the largest.

In terms of cost, soda ash continued to fall, so the company increased the self-sufficiency rate of quartz sand ore, and continued to 天津夜网 widen the profit gap with small businesses.

  Investment suggestion: raise earnings forecast, net profit attributable to mother from 19-21 to 12.

46, 13.

77, 14.

97 ppm increased to 13.

38, 16.

34, 18.

46 trillion, EPS is 0.

50, 0.

61, 0.

69 yuan, corresponding PE is 11X, 9X, 8X times, maintaining the “buy” level.

  Risk warning: a large number of production lines resume production; real estate completion demand is further reduced; new construction projects are less than expected.

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