COFCO Biochemical (000930) 2018 Annual Report Review: Asset Integration Completed, Fuel Fuel Ethanol Market Space Increases

COFCO Biochemical (000930) 2018 Annual Report Review: Asset Integration Completed, Fuel Fuel Ethanol Market Space Increases

The event company released the 2018 annual report and the 2019 first quarter report. In 2018, the company achieved operating income of 17.7 billion US dollars, an increase of 11%.

40%, achieving net profit attributable to shareholders of listed companies.

8.3 billion, with a basic budget benefit of zero.

26 yuan / share.

The company achieved operating income of 46 in the first quarter of 2019.

50,000 yuan, achieving 5793 net profit attributable to listed companies.

460,000 yuan.

Opinion fuel ethanol is expected to accelerate initially, the market space is huge.

Fifteen departments including the National Development and Reform Commission, the National Energy Administration, and the Ministry of Finance jointly issued the “Implementation Plan on Expanding Biofuel Ethanol Production and Promoting the Use of Vehicle Ethanol Gasoline”, which states that by 2020, vehicle ethanolFull gasoline coverage.

In June 2018 and March 2019, Tianjin and Shanxi successively released alternatives.

Taking into account the expansion of the basic coverage of ethanol gasoline nationwide in 2020, the promotion and implementation policies of other provinces and cities will accelerate.

According to the plan, the demand for fuel ethanol will reach 1,200 tons, and the existing capacity of fuel ethanol will be less than 300 tons, and a supply and demand gap of 500 tons may appear.

After the reorganization of the company, the market share has increased significantly, and progress has benefited first.

The company’s asset reorganization was completed and its market share increased.

The company passed the issuance in 20188.

8.3 billion shares were purchased in the form of a 100% stake in Biochemical Energy, Biochemical and Huali Investment by the holders of the biochemical investment at an issue price of 9.

38 yuan / share, has been listed on December 19, 2018.

The successful completion of asset reorganization has gradually consolidated the company’s level in the domestic corn deep processing industry.

Revenue from the fuel ethanol business increased, and product gross margins further improved.

The international crude oil price was at a high level in the first half of 2018, and the international crude oil price dropped in the second half of the year. The company’s fuel ethanol products achieved continuous profitability.

In 2018, the company’s fuel ethanol operating income was 81.

740,000 yuan, up 8 before.

74%, gross margin is 20.

31%, an increase of 6 per year.

77%.

Maintain Overweight rating is expected to be 0 for 2019-2021.

31, 0.

36, 0.

49 yuan, corresponding to the closing price of 7 on May 6.

52 yuan, PE is 24, 21, 15 times, maintaining the level of overweight.

Risk reminders: disease risk; prices fall short 南京夜网 of expectations; market demand is lower than expected.