Orchid Science and Technology (600123): Volume increase, price decline, performance

Orchid Science and Technology (600123): Volume increase, price decline, performance

This report reads: The decline in sales prices of main products has led to poor overall performance of the company, and the expected increase in performance due to bankruptcy and liquidation of subsidiaries cannot be achieved.

Investment Highlights: Revise down earnings forecasts and maintain a “cautious increase” rating.

Revenue in the first three quarters of 2019 was 四川耍耍网 61.

6.1 billion yuan, net profit attributable to mother 7.

400,000 yuan, achieving a budget income of 0.

65 yuan, down 25 before.

15%, lower than expected results.

We lower the 2019-20EPS to 0.


83 yuan (previous forecast was 0.


04 yuan), plus EPS0 forecast for 2021.

84 yuan, maintaining a target price of 6.

96 yuan, corresponding to 2019 PE8.

6 times, maintain the “cautious increase” rating.

Product sales have risen, prices have fallen, and overall operating performance has declined.

In the first three quarters, the company sold 611 products such as coal, urea, dimethyl ether, and lactam.




93 Initially, it is increased by 13 each year.

9% / 7.

9% / 5.

3% /-1.

5%, the calculated unit of coal / urea / dimethyl ether / lactam replaced 570/1714/2835/11215 深圳桑拿网 yuan, a decrease of 11.

1% / 1.

9% / 20.

5% / 19.


The sharp drop in prices dragged down performance, and Orchid Science and Technology achieved operating profit in the first three quarters9.

$ 1.6 billion, an average of 22 per year.


Subsidiary bankruptcy and liquidation will increase company performance.

The report summarizes that Chongqing Lanhua Solar, a subsidiary of the company, has entered bankruptcy liquidation procedures and will no longer consolidate the scope of consolidated statements. It will write back the offsetting impairment loss of 264.9 million yuan. The previous year’s excess income will be transferred back to confirm the investment income of 190.48 million yuan, a total amount of 4.

5.9 billion, increasing company performance.

Interest-bearing debt has been compressed, financial costs have fallen, and debt ratios have remained low.

Total scale of short-term borrowings in the first three quarters / non-current debt due within one year / long-term borrowings.

29 ppm, a decrease of 2 per year.2%, incurring financial expenses 2.

4.5 billion (down 18 a year.


The gearing ratio increased by 1 compared with the beginning of the period.

03PCT, reaching 55.

45%, still relatively low in three years.

risk warning.

Falling prices of coal and chemical products; the impact of environmental protection and limited production; macroeconomic risks.