Hunan Haili (600731) Semi-annual Report Review: Steady Price Growth Impairs Performance

Performance in line with expectations The company issued a 19-year interim report and achieved revenue 9 in the first half of the year.

870,000 yuan, an increase of 57 in ten years.

22%, net profit attributable to mother 0.

23 ppm, an increase of 37 in ten years.

79% earnings per share.

06 yuan, performance in line with expectations.

The company accrued Guixi factory impairment losses to reduce net profit of 69.62 million yuan, excluding this effect, the company’s net profit in the first half of the year was 92.51 million yuan, an increase of 457%.

Increase in revenue from product price increases and new capacity production The company’s revenue growth in the first half of the year was mainly due to the increase in product volume and price and the release of new product capacity.

The sales of the company’s core product, Budweiser, increased by 38.

9% price increase 23.

7%, Methomyl sales increased by 24.

5% price increase 44.

At 2%, the sales of menavir were down 37.

5% but the price rose 21.

4%.

Sulfendicarb was put into production in the second quarter, with sales of 711 tons and price of 15.

52 million / ton increased by 18 in ten years.

6%.

Profitability continued to improve, with a gross margin of 26 in the first half.

4% up 3.

56PCT with a period expense ratio of 13.

04% decrease by 3 per night.

28PCT; operation remains stable with inventory turnover rate2.

31. Weekly rate of accounts receivable.

73. Every year, it is obviously improved. The net operating cash inflow in the first half of the year was 80.5 million yuan, a year-on-year increase of 442%.

Reduction of staff and efficiency, the reform stimulated the vitality management team to pay close attention to staff reduction and efficiency, the number of employees decreased significantly from the end of 16 to the end of the year, 1837, and the per capita salary increased by 57% compared to 16 years.

Three system reforms were launched in full swing. The organizational structure of the headquarters was reduced from 17 to 9, and the post offices were co-located. The company’s headquarters implemented a system of full-office recruitment, and relevant posts in all departments have been recruited to perform duties.

The company established an employee shareholding plan in 2018 to subscribe for the company’s non-publicly issued stocks and dating strategic investors to optimize the equity structure.

The effect of the reform was initially demonstrated.

New production 四川耍耍网 capacity has been put into production one after another, and will continue to grow in the future. The company will fully utilize the advantages of the Hunan Chemical Industry Research Institute’s technology platform.

87% of the project progress of the preliminary pesticide project, and the remaining products will be put into production one after another.

As new projects are put into production, the company is still expected to maintain stable growth in the future.

The profit forecast and investment proposals for fixed-increasing projects have been put into production one after another. We believe the company will enter a period of rapid growth.

The company accrues impairment losses, so it lowered its 19-year net profit forecast. It is expected that the company’s EPS for 2019-2021 will be 0.

32/0.

70/0.

83 yuan 北京夜生活网 (previous values were 0.

52/0.71/0.

84 yuan).

The current price corresponds to 2019 PE19.

23 times, PB1.

87 times.

The company is the global leader in urethane-based insecticides. It provides shrinking product prices with continued growth in price and great flexibility in performance. State-owned enterprise reforms have reduced staffing and efficiency, and operating efficiency has continued to increase. Fixed-increasing projects have been put into production one after another, and future performance is expected to accelerate.

Maintain BUY rating.

Risk warning: product substitution risk; production safety risk; raw material supply risk;

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